Two committees within the European Parliament have recently given their approval to important components of a comprehensive legislative package aimed at combating money laundering. These measures will also be applicable to the cryptocurrency sector.
This legislative progress follows an agreement reached in January on the Anti-Money Laundering Regulation (AMLR). Under this regulation, crypto service providers will be required to follow customer verification protocols and monitor transactions involving self-hosted wallets and cross-border transfers. The legislation also establishes the Anti-Money Laundering Authority (AMLA), which will be based in Frankfurt, Germany.
The Joint Committee on Civil Liberties, Justice, and Home Affairs, along with the Committee on Economic and Monetary Affairs, have voted in favor of the establishment of the AMLA. The vote resulted in a 68 to 10 majority. In addition, there has been a provisional agreement on the regulation for preventing the financial system’s use for money laundering or terrorist financing. This agreement received a vote of 71 in favor, with four abstentions and nine against. The proposed measures, which are expected to be adopted by all 27 member states of the EU, received a supportive vote of 74, with five against. These measures are crucial to the EU’s strategy against money laundering, as they aim to create a consistent set of rules for implementation across all member states.
However, there are concerns within the European crypto industry that the rules for crypto service providers might be more stringent compared to those for traditional financial institutions. The newly adopted texts represent a significant step in the EU’s efforts to combat money laundering. They seek to standardize the approach across the bloc and ensure that crypto service providers comply with comprehensive verification and monitoring requirements.