EU Parliament Adopts New Financial Surveillance Rules for Service Providers
The EU Parliament approved a new AML package that will come into effect in 3 years. The new rules contain enhanced customer surveillance measures for financial institutions and EU wide limit of 10000 EUR on cash payments for obligated entities.
- The new rules include 'enhanced due diligence measures and checks on customers’ identity', after which obliged entities (e.g. banks, assets and crypto assets managers or real and virtual estate agents) must report suspicious activities to Financial Intelligence Units and other authorities.
The laws also give Financial Intelligence Units (FIUs) more powers to analyze and suspend suspicious transactions.
- The legislation also contains enhanced vigilance provisions regarding ultra-rich individuals (total wealth worth at least EUR 50 000 000), an EU-wide limit of EUR 10 000 on cash payments, except between private individuals in a non-professional context, and measures to ensure compliance with targeted financial sanctions.
- The laws still need to be formally adopted by the EU Council. Much of the new regulation kicks in after three years but some member countries may choose to adopt these measures earlier.
- The rules also state that the Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA) will be established in Frankfurt.
