The European Parliament reported on the approval of the December agreement with the European Council, according to which a number of requirements are being introduced on the territory of the European Union aimed at strengthening control over cryptocurrencies in order to prevent their use in money laundering and terrorist financing. Corresponding amendments will be introduced in the EU Directive on money laundering combat.
In a bid to end the anonymity associated with virtual currencies, virtual currency exchange platforms and custodian wallet providers will, like banks, have to apply customer due diligence controls, including customer verification requirements.
European Parlament Message
Also, the amendments provide stricter requirements for disclosure of information about the real owners of European companies, the use of prepaid cards, etc.
Criminal behaviour hasn’t changed. Criminals use anonymity to launder their illicit proceeds or finance terrorism. This legislation helps address the threats to our citizens and the financial sector by allowing greater access to the information about the people behind firms and by tightening rules regulating virtual currencies and anonymous prepaid cards.
The updated directive will come into force 3 days after publication in the official journal of the European Union. The EU member states will have 18 months to incorporate the new rules into their national legislation.