The European Parliament, an arm of the European Union (EU), has declared a provisional agreement with the European Council to strengthen anti-money laundering (AML) measures. The agreement must be formally adopted by both the European Parliament and the European Council before it can take effect.
According to a press release from the European Parliament, this provisional deal forms part of an Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) package. This package is designed for implementation by banks and other entities to shield EU markets from illegal financial activities. The new provisions would empower Financial Intelligence Units with increased authority, facilitating them in detecting illicit activities and suspending “suspicious transactions.”
In its own press release, the European Council revealed that these new provisions would be applicable to most crypto-asset service providers (CASPs). These providers will be required to conduct enhanced due diligence on their customers. This process will include additional steps to verify customer identities and heightened scrutiny of transactions exceeding 1,000 Euro or any suspicious transactions. Furthermore, these provisions establish an EU-wide limit of 10,000 Euro for cash transactions. According to the Council, this “will make it harder for criminals to launder dirty money.”
Vincent Van Peteghem, Belgian Minister of Finance, commented on this agreement in a statement shared by the European Council. He said, “This agreement is part and parcel of the EU’s new anti-money laundering system. It will improve the way national systems against money laundering and terrorist financing are organised and work together. This will ensure that fraudsters, organised crime and terrorists will have no space left for legitimising their proceeds through the financial system.”
Leading industry participants such as Binance, the world’s largest crypto exchange, have welcomed these steps aimed at combating money laundering, terror financing and other illicit activities within the digital asset ecosystem. Changpeng Zhao (CZ), co-founder and former CEO of Binance, stated in a post on X that Binance concurs with the “view that strong standards are critical to the future of this industry, especially on pressing issues like money laundering and financial crime.” CZ also emphasised the importance of implementing these standards globally. He said, “Global standards provide clarity and consistency – key factors of effective regulation, but they can only be helpful if implemented across the board.”
The European Parliament consists of members elected by residents of EU member states, as per its official website. The European Parliament and European Council function as co-legislators, adopting legislative proposals and determining the EU’s budget. The mission of the European Parliament is to foster “democratic decision-making” and human rights both within the EU and globally.
