European Commission takes steps in the fight against financial crime

Aug 11, 2021 Benn-Ibler Rechtsanwälte

With the help of a total of four legislative proposals, the Commission seeks to improve the regulations on combating money laundering and terrorist financing. The new measures are intended in particular to mitigate the additional risks created by technological innovation and to significantly strengthen the existing EU protective framework.

The first measure envisaged is the creation of a new EU Anti-Money Laundering Authority (AMLA). It is to act as a central body coordinating the work of national authorities to ensure that the private sector applies EU rules correctly and uniformly.

Furthermore, a uniform EU regulatory framework for combating money laundering and terrorist financing is to be created. The aim is to harmonize existing regulations in this area, while at the same time laying down more detailed provisions in the areas of customer due diligence, beneficial ownership and the powers and duties of supervisory authorities.

Developments in the crypto sector are to be taken into account with the full application of EU anti-money laundering and counter-terrorist financing regulations in this area. In addition, a revision of the Money Transfer Regulation 2015/847 is planned, which will enable the tracing of crypto-transfers. 

Large cash payments are a popular means for money laundering as they are difficult to trace. To combat this, the Commission proposes the introduction of a uniform cash payment ceiling of EUR 10,000. To date, two-thirds of member states have already introduced national ceilings. The standardization should lead to better protection, but the Commission believes that the EUR 10,000 limit is sufficient not to jeopardize the role of the Euro as legal tender and the importance of cash.

The implementation of these legislative proposals still requires the approval of the European Parliament and the Council. Currently, the establishment of the new authority "AMLA" is scheduled for 2024. 

European Commission, Press Release (20.07.21)