EU Parliament Strengthens Anti-Money Laundering Laws: Enhanced Transparency and Oversight Measures

The European Parliament has taken a significant step in combating money laundering and terrorist financing with the adoption of a new package of laws on April 24. These laws aim to bolster the EU's arsenal in the fight against financial crimes and ensure greater transparency in financial transactions.

One key aspect of the new laws is the provision for enhanced access to beneficial ownership information. This means that individuals and organizations with a legitimate interest, such as journalists, civil society organizations, and competent authorities, will have direct and free access to this information, both at the national level and across the EU. Additionally, these registers will now include historical data spanning at least five years.

Furthermore, the legislation grants Financial Intelligence Units (FIUs) more authority to analyze and detect instances of money laundering and terrorist financing. They will also have the power to suspend suspicious transactions, enhancing their ability to combat financial crimes effectively.

The new laws also introduce stringent due diligence measures, particularly for so-called "obliged entities" like banks, asset managers, and real estate agents. Notably, starting from 2029, professional football clubs engaged in high-value financial transactions will also be subject to these due diligence rules, including verifying customers' identities and reporting any suspicious transactions to FIUs.

Other notable provisions include enhanced vigilance measures targeting ultra-rich individuals and imposing an EU-wide limit of €10,000 on cash payments, with exceptions for non-professional transactions between private individuals.

To oversee the implementation of these new regulations, a new authority, the Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA), will be established in Frankfurt. AMLA will have the mandate to directly supervise the riskiest financial entities, intervene in case of supervisory failures, and mediate disputes between supervisors. Additionally, it will oversee the implementation of targeted financial sanctions.

The Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) package comprises several legislative components, including the sixth Anti-Money Laundering (AML) directive, the EU "single rulebook" regulation, and the AMLA regulation.

While the European Parliament has adopted these laws, they still await formal approval by the Council before publication in the EU's Official Journal. This comprehensive legislative initiative reflects the EU's commitment to addressing financial crimes and meeting the demands of citizens expressed during the Conference on the Future of Europe.

By fLEXI tEAM