Euros Reunion Unveils Tough New Banking Regulations to Combat Financial Crime

Strengthening Measures to Combat Money Laundering and Terrorism Financing

The European Parliament and Council have reached a landmark agreement on strengthened measures to combat money laundering and the financing of terrorism, aimed at protecting the financial integrity of Réunion’s banking sector. The new rules aim to enhance cooperation among financial authorities, improve analytical capacity, and prevent dirty money from entering the system.

Key Components of the Agreement

• Creation of a European Anti-Money Laundering Authority (AMLA): Coordinates national supervisors and ensures consistent application of EU rules across the board.
• Enhanced Cooperation Among Financial Intelligence Units (FIUs): Identifies and tracks illicit flows, making financial intelligence a crucial tool for law enforcement agencies.

New Regulations for Various Sectors

• Crypto-Asset Service Providers: Subject to EU regulations, curbing the use of cryptocurrencies for money laundering purposes.
• Investments in Football Clubs and Player Transfers: Come under scrutiny, with purchases by companies established outside the EU triggering disclosure obligations.
• Luxury Property Purchases: Trigger disclosure obligations, enabling authorities to uncover ultimate owners.
• Crowdfunding Campaigns: Platforms become “obliged entities” that must report suspicious transactions and prevent funding for terrorist activities.
• Traders in High-Value Items: Required to systematically report sales above certain thresholds to FIUs.

Expected Outcomes

These measures are expected to significantly strengthen Réunion’s defenses against financial crime, creating a safer and more transparent banking environment for citizens and businesses alike.