European Commission presents package to strengthen EU anti-money laundering and counter-terrorist financing regulations
20.07.2020 r. The European Commission has presented a package of legislative proposals. They aim to strengthen EU anti-money laundering and counter-terrorist financing (AML) regulations. In particular, the package aims to improve the detection of suspicious financial activities, as well as to close identified loopholes in this area.
The package presented includes four legislative proposals:
- a regulation which will establish a new EU AML authority,
- a regulation on the prevention of money laundering and terrorist financing,
- the 6th Directive on money laundering and terrorist financing,
- revision of the Regulation on information accompanying transfers of funds.
The most important initiative is certainly the creation of a new EU AML authority. Its main objective will be to ensure better coordination of supervisory activities within the EU, the establishment of a single integrated supervisory system, and direct supervision of some of the riskiest financial institutions. The European Commission has also paid a lot of attention to the cryptocurrency sector. Under the presented initiative, it is to be fully subject to AML regulations. There is also no doubt that the whole package of proposals is aimed at harmonizing AML regulations across the EU. The European Commission rightly saw the need for better harmonization of national provisions in this area.