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

Summary:

Overview of a legislative package adopted by the European Commission in July 2021 addressing money laundering and the financing of terrorism.

Further information:

The European Commission presented on 20 July 2021 a package of legislative proposals aimed at strengthening the European Union's anti-money laundering and countering the financing of terrorism (AML/CFT) rules. This was seen as part of a commitment to protect citizens and the financial system from these events. The aim was 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 four legislative initiatives:

• Regulation establishing the Authority for Anti-Money Laundering and Countering the Financing of Terrorism;
• Regulation on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing;
• Directive on the mechanisms to be put in place by the Member States for the prevention of the use of the financial system for the purposes of money laundering or terrorist financing;
• Regulation on information accompanying transfers of funds and certain crypto-assets.

The legislative package was formally adopted by the co-legislators in May 2024.

Commentary and Analysis

Centre for European Policy Studies (CEPS): Opinion, 05/07/2021: Time to get serious on AML policy in Europe https://www.ceps.eu/time-to-get-serious-on-aml-policy-in-europe/

European Banking Federation (EBF): Press Release, 20/07/2021: EBF supports EU’s latest efforts in fight against financial crime https://www.ebf.eu/anti-money-laundering/ebf-supports-eus-latest-efforts-in-fight-against-financial-crime/

European Gaming and Betting Association (EGBA): News, 20/07/2021: EGBA Welcomes Proposals For New EU Anti-Money Laundering Rules https://www.egba.eu/news-post/egba-welcomes-proposal-for-a-new-eu-anti-money-laundering-rules/

European Parliamentary Research Service (EPRS): At a Glance, 16/04/2024: Anti-money-laundering package https://www.europarl.europa.eu/thinktank/en/document/EPRS_ATA(2024)760419

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News

Cyprus Mail, 21/07/2021: EU to ‘close the door’ on money-laundering https://cyprus-mail.com/2021/07/21/eu-close-door-money-laundering/

Deutsche Welle, 22/07/2021: The EU declares war on money laundering https://p.dw.com/p/3xoH0

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Official

European Commission: DG Financial Stability, Financial Services & Capital Markets Union: Anti-money laundering and countering the financing of terrorism https://finance.ec.europa.eu/financial-crime/anti-money-laundering-and-countering-financing-terrorism-eu-level_en

General Secretariat of the Council (EU): Policies: Fight against money laundering and terrorist financing in the EU https://www.consilium.europa.eu/en/policies/fight-against-terrorism/fight-against-terrorist-financing/

European Commission: Publications: Anti-money laundering and countering the financing of terrorism legislative package https://ec.europa.eu/info/publications/210720-anti-money-laundering-countering-financing-terrorism_en

European Commission: Press Release, 20/07/2021: Beating financial crime: Commission overhauls anti-money laundering and countering the financing of terrorism rules https://ec.europa.eu/commission/presscorner/detail/en/ip_21_3690

European Commission: Questions and Answers: Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) (20 July 2021) https://ec.europa.eu/commission/presscorner/detail/en/qanda_21_3689

European Commission: Remarks by Executive Vice-President Dombrovskis at the press conference on the Anti-money laundering package (20 July 2021) https://ec.europa.eu/commission/presscorner/detail/en/speech_21_3806

European Commission: Remarks by Commissioner McGuinness at the press conference on the Anti-money laundering package (20 July 2021) https://ec.europa.eu/commission/presscorner/detail/en/speech_21_3807

Greens/EFA EP Group: Press Release, 20/07/2021: Commission Anti-Money Laundering Proposals Major Step Forward https://www.greens-efa.eu/en/article/press/commission-anti-money-laundering-proposals-major-step-forward

European Commission: Speech on AML legislative package at Eurofi conference (9 September 2021) https://ec.europa.eu/commission/presscorner/detail/en/speech_23_2311

European Commission: Opening statement before the European Parliament: increased efforts to fight money laundering (20 October 2021) https://ec.europa.eu/commission/presscorner/detail/en/speech_23_2304

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