EU’s Stricter Anti-Money Laundering Measures Come into Effect

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The European Union has introduced new regulations aimed at combating money laundering and terrorist financing. These measures, which came into effect on [date], aim to strengthen the bloc’s anti-money laundering regime by increasing transparency and improving coordination among member states.

Key Provisions

• The “single regulation” includes provisions on:
  • Customer due diligence
  • Beneficial owner transparency
  • Use of anonymous instruments and entities
  • Addressing “golden” passports and visas
• The EU’s Sixth Directive on the fight against money laundering provides national authorities with the necessary tools to supervise financial institutions and monitor suspicious transactions.
• The directive also establishes the European Anti-Money Laundering Authority (AMLA), which will oversee compliance with anti-money laundering requirements across the bloc.

France’s Progress

In France, the government has suspended access to a register of beneficial owners after a court ruling deemed unlimited access to be an infringement on data privacy. However, the government has since restored access to the register while it awaits the outcome of the European decision.

• The new regulations also require financial institutions to include accurate information about originators and beneficiaries in payment orders for funds transfers.
• Certain businesses such as real estate companies and regulated professions are subject to anti-money laundering requirements.

Challenges Ahead

A report by the Financial Action Task Force (FATF) evaluated France’s anti-money laundering regime in 2022 and found that while it is robust and sophisticated, there are areas where improvement is needed. Specifically:

• Better supervision of professionals involved in the activities of legal entities and real estate sector
• Improved oversight of the not-for-profit sector

EU’s Plans for Strengthening Anti-Money Laundering Regime

The EU is planning to strengthen its anti-money laundering regime through a new directive that will:

• Standardize European supervision
• Give more powers to financial intelligence units
• Harmonize access to registers of beneficial owners
• Create the European Anti-Money Laundering Authority (AMLA) to coordinate the fight against money laundering

Accessing Anti-Money Laundering Regulations

The EU’s anti-money laundering regulations are publicly available on the Internet. While not all materials are available in English, they can be easily translated.