EU Tightens Crypto Regulations with Provisional AML Agreement The European Union
has provisionally agreed on new anti-money laundering (AML) regulations specifically targeting the crypto sector.
According to a press release published by the European Council,
the provisional agreement reached by Council and the Parliament focuses on enhancing measures to safeguard both EU citizens and its financial system from money laundering and terrorist financing activities. The new AML regulations extend to “most of the crypto sector,” requiring all crypto asset service providers (CASPs) to conduct due diligence on their customers. This includes
verifying facts and information about their customers and reporting any suspicious activity.
“According to the agreement, CASPs will need to apply customer due diligence measures when carrying out transactions amounting to €1000 or more,” said the Council.
“It adds measures to mitigate risks in relation to transactions with self-hosted wallets.” The agreed measures include enhanced due
diligence requirements specifically for crypto-asset service providers involved in cross-border correspondent relationships. This is a targeted effort
to strengthen oversight and increase the security of international crypto transactions.
“Credit and financial institutions will undertake enhanced due diligence measures when business relationships with very wealthy (high net-worth) individuals involve the handling of a large amount of assets,” said the Council.
