Anti-money laundering is an issue that has been very sensitive for the economies of all nations. The issue has been grip[ping hard in Europe and to put a hold on it, new anti-money laundering rules have been imposed by the authorities. As per the European Union, the anonymity in the cryptocurrencies and anti-money laundering issues faced a tougher stance in the new rule book by the EU.
The European Union has tightened its grip on the anti-money laundering issues prevailing in Europe. The European Commission is working on rules to end anonymity in the cryptocurrencies and form a new anti-money laundering agency to enforce tougher rules, to crack down on the proceeds from crime.
Mairead McGuinness, the financial services commissioner, has tabled the proposal which aimed to improve the detection of suspicious transactions and unlawful activities. She has also put a tight hold on the loopholes used by criminals to launder illicit proceeds or finance terrorist activities through the financial system.
New regulations against anti-money laundering
Money laundering is one of the major problems in Europe. As per Europol estimates, nearly one per cent of the EU’s economic activity involves suspicious transactions. This proposal by McGuinness will safeguard money laundering amid the pressure of Europe to increase enforcement.
This pressure has come in when many countries started investigating Danish Multinational Danske Bank as it came to light that over 200 billion euros of suspicious transactions have happened via its small Estonian subsidiary between 2007 and 2015.
As per the new plans against money laundering, the regulations apply to financial services to the whole crypto sector. It has also asked the investors to verify themselves and the identity of those sending and receiving money. Any anonymous crypto asset wallet will be blocked under the new plan and banning of cash payments of more than 10,000 euros is imposed.
While talking to the media, McGuinness said that people dealing in cryptocurrency should know now that anonymity in the crypto sector will not be tolerated anymore under the new plan. The identity of all owners of virtual assets, senders or receivers of transactions would have to be verified by the crypto service provider.
This will further help the authorities to check on the suspicious transactions and the identities of the senders and the receivers simultaneously. The new rules will bring the crypto sector in line with the rest of the financial industry.
With the new rules on the roll, new proposals would establish new anti-money laundering rules. Under the new rule, direct supervision of the riskiest financial institution will be done. This will help in coordination between the national bodies on cross-border flows of cash. Under the new rules, national registers of bank accounts will connect. The law enforcement agencies will be given access to the system. This will help in speeding up the financial investigations and recovery of criminal assets in cross-border cases.
With the overall change in the rules of the EU, all other states will come in line with one another to ensure criminals cannot shop between member states to find areas where they can target their funds.