EU’s Anti-money Laundering Efforts Strengthened with New Rules

Newly approved anti-money laundering (AML) rules will safeguard the Old Continent from such criminal activities. On Wednesday, the European Parliament confirmed that it has approved a new package of AML rules applicable to the European Union.

The new rules, as explained by the EP, seek to ensure “people with a legitimate interest, including journalists, media professionals, civil society organizations, competent authorities, and supervisory bodies” can access free and accurate data.

This information will involve beneficial ownership that is recorded within national registries. Besides on a national level, such data will be interconnected on an EU level, allowing such authorities and organizations to access the required data. Besides updated current information, there will be background data for a minimum of five years.

Ultimately, the new AML package is expected to play a key role in investigations of the Financial Intelligence Units (FIUs). As a result, those bodies will be able to easily detect suspicious money transfers or identify potential cases of terrorism financing by analyzing data and having more powers. Additionally, FIUs will be able to block suspected criminal transactions, potentially preventing money from reaching organizations that may be involved in unlawful activities.

The supervision of the new rules that seek to combat money laundering and other criminal activities will be in the hands of the Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA). In February, the EP confirmed it selected Frankfurt as the seat for the AMLA. According to the EP, the AMLA “will be charged with directly supervising the riskiest financial entities, intervening in case of supervisory failures, acting as a central hub for supervisors and mediating disputes between them.” The new Authority will also be in charge of the implementation of targeted financial sanctions, among other supervisory functions.

EGBA Welcomes the New Regulations

Under the recently approved AML package, a single rulebook regulation will be enforced. Additionally, European lawmakers also approved the sixth AML directive with an overwhelming majority of 513 votes in favor and only 25 against.

Before the final adoption of the new AML package, approval from the Council is expected. Once this happens, the new laws will be published in the EU’s Official Journal.

“The EU’s new anti-money laundering package aims to create a more consistent regulatory framework and will benefit online gambling operators by standardizing AML rules and reporting requirements across member states,“

reads a statement released by EGBA

In light of the EP’s latest announcement, the industry body, representing online gambling operators in Europe, the European Gaming and Betting Association (EGBA), welcomed the new AML package, highlighting the importance of the new framework. The Association praised the new regulatory framework, explaining that it would help deliver consistent regulations and standardized AML rules across Europe that would benefit online gambling operators.