European Commission - Anti-money laundering and countering the financing of terrorism legislative package

The European Commission presented an ambitious package of legislative proposals to strengthen the EU’s anti-money laundering and countering the financing of terrorism (AML/CFT) rules. The aim is to improve the detection of suspicious transactions and activities, and close loopholes used by criminals to launder illicit proceeds or finance terrorist activities through the financial system.

The package includes proposals for: (i) the creation of a new EU authority to fight money laundering; (ii) a regulation on AML/CFT (the new regulation will contain directly applicable rules, including in the areas of customer due diligence and beneficial ownership); (iii) a 6th directive on AML/CFT and (iv) a revised regulation on transfers of funds.

The legislative package will be discussed by the European Parliament and Council. The Commission is hopeful for a speedy legislative process. The AML authority should be operational in 2024 and will start the work of direct supervision slightly later, once the directive has been transposed and the new rules start to apply