Financial Crime World

EU Cracks Down on Money Laundering with New Anti-Money Laundering Package

The European Union (EU) is taking strong measures to enhance its anti-money laundering (AML) and countering the financing of terrorism (CFT) rules with a new comprehensive reform package. This article outlines the key measures of the AML package, adopted by the EU Council on October 21, 2021.

Measures to Strengthen AML/CFT Rules

  1. Enhanced customer due diligence (CDD) requirements: Member states must implement rigorous CDD measures, such as identifying beneficial owners of companies and trusts and verifying their identities.

    • Subheading: Identifying Beneficial Owners
      • EU countries will be required to establish central registers of beneficial ownership.
      • Companies and non-profit organizations will need to maintain registers of beneficial owners and make them available to relevant authorities.
      • Trusts will be obliged to disclose their beneficial owners.

  2. Increased transparency of trusts: New rules on trusts will require them to disclose beneficial ownership information.

  3. Stricter measures against high-risk third countries and jurisdictions: The EU will create a list of high-risk third countries and jurisdictions and implement measures to cooperate with them in mitigating money laundering and terrorist financing risks.

  4. Expansion of Europol’s European Money Laundering Assessment Centre (EMMA): EMMA’s mandate and resources will be expanded to provide more effective support to EU member states in their AML and CFT efforts.

  5. Extension of AML rules to virtual currencies: The EU will bring virtual currencies and platforms dealing with them under the scope of AML/CFT regulations.

  6. Regulatory Compliance

    • Subheading: PricewaterhouseCoopers (PwC) Support
      • PwC, a leading professional services firm, will closely monitor the implementation of these regulations and their impact on businesses across Europe.
      • Their team of experts will ensure that clients stay informed and compliant with these evolving requirements.

Expected Implementation and Impact

The AML package is expected to be fully implemented by 2024, and the EU Commission estimates that these measures will significantly increase the effectiveness of the EU’s AML and CFT efforts, leading to a reduced perceived risk of money laundering and terrorist financing in the EU.