EU officials reach agreement on AML authority for supervising crypto firms
The European Union has agreed on a partial proposition to configure an AMLA to put an end to the unregulated crypto transactions
By Shashank Bhardwaj
On Wednesday, the European Union (EU) announced an agreement to configure an Anti-Money Laundering Authority (AMLA) dedicated to the supervision of CASPs (Crypto Asset Service Providers).
The European Union stated that the AML authority will have the power to supervise "high-risk and cross-border financial entities" in addition to crypto firms — "if they are considered risky.” AMLA would help in “fighting anti-money laundering and the financing of terrorism.”
The proposition to form an Anti-Money Laundering Authority was first laid down in July 2021. As per the European Commission, AMLA will start its operations in 2024 and "start the work of direct supervision slightly later." AMLA would be the first regulatory body to oversee money laundering across Europe, assembling with all the countries' financial intelligence units and coordinating with local regulators.
Ernest Urtasun, a European Parliament member, said, “We are putting an end to the wild west of unregulated crypto, closing major loopholes in the European anti-money laundering rules.” However, these rules won't apply to peer-to-peer transactions as the entities are not bound in these types of transfers. Further, Ernest Urtasun said, "CASPs will be required to collect information and apply enhanced due diligence measures with respect to all transfers involving unhosted wallets, on a risk basis."
European Parliament member Ondrej Kovarik tweeted that the EU has reached a "provisional political agreement on the Transfer of Funds Regulation." He said it might be the right decision to diminish the risks associated with money laundering in the crypto community.
Currently, not much is known about this political agreement. However, according to the March draft, the crypto service providers would be required to gather personal data related to the transactions of any volume that have been made using unhosted wallets while verifying their accuracy.
Shashank is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajsh
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