The Council and Parliament have reached a provisional agreement on key parts of the anti-money laundering package, which aims to protect EU citizens and the financial system from money laundering and terrorist financing, according to a press release dated January 18, 2024. Once approved, the texts must be formally adopted by the Council and Parliament before they are published in the Official Journal of the EU and enter into force.

Key points of the agreement include

– Full harmonization of money laundering rules at EU level

– List of obliged entities will be extended to include the crypto sector. This means that providers of crypto services will be obliged to implement due diligence obligations in relation to their customers.

– An EU-wide cap on cash payments will be introduced, additional identity checks for cash transactions below the limit

– Rules on beneficial ownership will be harmonized and made more transparent

– obliged entities must take enhanced due diligence measures in business relationships with high-risk third countries to protect the integrity of the EU single market.

– Tasks and powers of national supervisory authorities and financial intelligence units (FIUs) harmonized to enable effective cross-border cooperation

Businesses in and outside the financial sector should be made aware of money laundering and the innovations at an early stage.