The new AML regulation agreed by the European Parliament and the European Council will have several potential implications for cryptocurrency users in the EU:

Cryptoasset service providers (CASPs) will be required to conduct customer due diligence (CDD) for transactions of €1,000 or more.

This means that for large transactions, users will have to provide more information about themselves, such as identity, address and source of funds.

This agreement is part and parcel of the EU’s new anti-money laundering system. It will improve the way national systems against money laundering and terrorist financing are organised and work together. This will ensure that fraudsters, organised crime and terrorists will have no space left for legitimising their proceeds through the financial system.

Vincent Van Peteghem Belgian Minister of Finance

Rules on flagging entities linked to sanctioned persons or entities may make it more difficult to use cryptocurrencies for activities prohibited in the EU, such as terrorist financing or money laundering.

This could lead to restrictions on certain types of cryptocurrency transactions and increased scrutiny of users in high-risk countries.

An example of what problems you may encounter:

A client contacted us regarding an issue with the exchange platform that had frozen his account due to a suspected connection to sanctions. This client was doing a fiat-to-stablecoin exchange. He was converting USD 200,000 to USDT when the platform flagged his transactions as suspicious and froze them. Seeking assistance, the client contacted us to demonstrate his lack of association with sanctions and to prove that his assets were mistakenly frozen.

Read material:

https://blog.amlbot.com/frozen-assets-on-cex-sanctions-exposure-case/

__________

It should be noted that the specific impact of these rules will depend on how they are implemented in the EU.

It will be very difficult for criminals to use cryptocurrencies for illegal activities, but unfortunately, legitimate users of cryptocurrencies may be affected to some degree.

Beneficial ownership registers

According to the provisional agreement the information submitted to the central register will need to be verified. Entities or arrangements that are associated with persons or entities subject to targeted financial sanctions will need to be flagged.

The directive grants the entities in charge of the registers the power to carry out inspections at the premises of legal entities registered, in case of doubts regarding the accuracy of the information in their possession.

The agreement also establishes that in addition to supervisory and public authorities and obliged entities, among others, persons of the public with legitimate interest, including press and civil society, may access the registers.

In order to facilitate investigations into criminal schemes involving real estate, the text ensures that real estate registers are accessible to competent authorities through a single access point, making available for example information on price, property type, history and encumbrances like mortgages, judicial restrictions and property rights.

Summary of main points:

Anti-money laundering: Council and Parliament strike deal on stricter rules

“According to the agreement, CASPs will need to apply customer due diligence measures when carrying out transactions amounting to €1000 or more.”

“An EU-wide maximum limit of €10.000 is set for cash payments, which will make it harder for criminals to launder dirty money.”

“Entities or arrangements that are associated with persons or entities subject to targeted financial sanctions will need to be flagged.”

AMLbot will be an important tool once the rules are in place. Let's understand why:

• Ensuring compliance

AMLbot helps users comply with new AML/CFT regulations AMLbot monitors changes in legislation and updates systems to meet new requirements. This helps users avoid fines or other penalties for non-compliance.

• Helps reduce the risk of users getting involved in illegal activities

AMLbot monitors user transactions and identifies suspicious activities. This helps users avoid using cryptocurrency wallets for money laundering and other illegal activities.

• Enables transparency in cryptocurrency transactions

AMLbot can track the movement of cryptocurrency and provide information about who is using cryptocurrency and how. This can help increase trust in cryptocurrency and make it more attractive to legitimate users.

The new rules should make it harder to launder money through cryptocurrency. Increased scrutiny and restrictions on cash could create serious difficulties for cryptocurrency users.

It is also important to note that the rules are still being finalized and will come into force later and their impact will depend on the implementation in different EU countries.

The new AML regulation agreed by the European Parliament and the European Council will have several potential implications for cryptocurrency users in the EU:

Cryptoasset service providers (CASPs) will be required to conduct customer due diligence (CDD) for transactions of €1,000 or more.

This means that for large transactions, users will have to provide more information about themselves, such as identity, address and source of funds.

This agreement is part and parcel of the EU’s new anti-money laundering system. It will improve the way national systems against money laundering and terrorist financing are organised and work together. This will ensure that fraudsters, organised crime and terrorists will have no space left for legitimising their proceeds through the financial system.

Vincent Van Peteghem Belgian Minister of Finance

Rules on flagging entities linked to sanctioned persons or entities may make it more difficult to use cryptocurrencies for activities prohibited in the EU, such as terrorist financing or money laundering.

This could lead to restrictions on certain types of cryptocurrency transactions and increased scrutiny of users in high-risk countries.

An example of what problems you may encounter:

A client contacted us regarding an issue with the exchange platform that had frozen his account due to a suspected connection to sanctions. This client was doing a fiat-to-stablecoin exchange. He was converting USD 200,000 to USDT when the platform flagged his transactions as suspicious and froze them. Seeking assistance, the client contacted us to demonstrate his lack of association with sanctions and to prove that his assets were mistakenly frozen.

Read material:

https://blog.amlbot.com/frozen-assets-on-cex-sanctions-exposure-case/

__________

It should be noted that the specific impact of these rules will depend on how they are implemented in the EU.

It will be very difficult for criminals to use cryptocurrencies for illegal activities, but unfortunately, legitimate users of cryptocurrencies may be affected to some degree.

Beneficial ownership registers

According to the provisional agreement the information submitted to the central register will need to be verified. Entities or arrangements that are associated with persons or entities subject to targeted financial sanctions will need to be flagged.

The directive grants the entities in charge of the registers the power to carry out inspections at the premises of legal entities registered, in case of doubts regarding the accuracy of the information in their possession.

The agreement also establishes that in addition to supervisory and public authorities and obliged entities, among others, persons of the public with legitimate interest, including press and civil society, may access the registers.

In order to facilitate investigations into criminal schemes involving real estate, the text ensures that real estate registers are accessible to competent authorities through a single access point, making available for example information on price, property type, history and encumbrances like mortgages, judicial restrictions and property rights.

Summary of main points:

Anti-money laundering: Council and Parliament strike deal on stricter rules

“According to the agreement, CASPs will need to apply customer due diligence measures when carrying out transactions amounting to €1000 or more.”

“An EU-wide maximum limit of €10.000 is set for cash payments, which will make it harder for criminals to launder dirty money.”

“Entities or arrangements that are associated with persons or entities subject to targeted financial sanctions will need to be flagged.”

AMLbot will be an important tool once the rules are in place. Let's understand why:

• Ensuring compliance

AMLbot helps users comply with new AML/CFT regulations AMLbot monitors changes in legislation and updates systems to meet new requirements. This helps users avoid fines or other penalties for non-compliance.

• Helps reduce the risk of users getting involved in illegal activities

AMLbot monitors user transactions and identifies suspicious activities. This helps users avoid using cryptocurrency wallets for money laundering and other illegal activities.

• Enables transparency in cryptocurrency transactions

AMLbot can track the movement of cryptocurrency and provide information about who is using cryptocurrency and how. This can help increase trust in cryptocurrency and make it more attractive to legitimate users.

The new rules should make it harder to launder money through cryptocurrency. Increased scrutiny and restrictions on cash could create serious difficulties for cryptocurrency users.

It is also important to note that the rules are still being finalized and will come into force later and their impact will depend on the implementation in different EU countries.