EU Introduces Strict New AML Rules for Crypto Transactions

The European Union (EU) has agreed on the introduction of new rules aimed at combating money laundering (AML).

The new rules are set to significantly impact the crypto sector, with all “cryptoasset service providers” (CASPs) mandated to conduct thorough due diligence on their customers.

Under the agreed-upon provisions, CASPs are obligated to apply customer due diligence measures for transactions exceeding €1000. This entails verifying crucial facts and information about customers and promptly reporting any suspicious activities.

The regulatory framework also introduces specific measures to address risks associated with transactions involving “self-hosted wallets”.

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Moreover, the Council and Parliament have introduced specialized enhanced due diligence measures for cross-border correspondent relationships involving crypto-asset service providers.

The agreement also gives greater authority to Financial Intelligence Units (FIUs), including expedited access to tax information, funds, frozen assets linked to financial penalties, and crypto transfers.