MEPs from the Committees on Economic and Monetary Affairs (ECON) and on Civil Liberties (LIBE) are set to adopt, on Tuesday 28 March, their negotiating position on the anti-money laundering package. This includes the text establishing the Anti-Money Laundering and Anti-Terrorist Financing Authority (AMLA) (see EUROPE 13149/3), as well as the ‘AMLD6’ directive and a regulation.
‘AMLD6’ directive. This directive is a revision of the ‘AMLD5’ directive. According to documents obtained by EUROPE, MEPs are expected to vote on changes to beneficial ownership registers (see EUROPE 13146/14), following the Court of Justice of the EU’s ruling. In November, the Court found that public access to information on beneficial owners constitutes a serious interference with fundamental rights to privacy and personal data protection (see EUROPE 13068/28).
They will review the specific access rules to beneficial ownership registers for the persons having a legitimate interest. These persons would have access to central registers showing the name, month and year of birth, country of residence and nationality of the beneficial owner, if an individual, but also the nature and extent of the beneficial interest held, the date on which they became beneficial owners and historical data of past beneficial owners. For legal persons, the registers would contain contact details.
If no beneficial owner has been identified, it will be necessary to justify the absence of a beneficial owner or the impossibility of identifying the beneficial owner, as well as the data of the natural person(s) who hold the function of senior managing official(s).
MEPs are expected to state precisely who has a legitimate interest: - journalists and media connected with the prevention or combatting of money laundering or terrorist financing; - civil society organisations connected with prevention; - higher education institutions; - persons who are likely to enter into transactions or business relationships with a corporate entity, legal entity or legal arrangement; - persons who are likely to perform a task or engage in a business relationship that requires them to assess whether a corporate entity, legal entity or legal arrangements, or its beneficial owner is subject to targeted financial sanctions; - financial institutions, external agents, service providers and public authorities.
In addition, MEPs will clarify that the legitimate interest should apply without any discrimination based on nationality, country of residence or country of establishment of the person making the request, including on the condition of authentication means.
‘AMLR’ regulation. The purpose of the regulation is to harmonise anti-money laundering practices between Member States.
In this text, beneficial ownership is also addressed, in particular in the chapter on customer due diligence. This would require obliged entities to take appropriate measures to verify the identity of the beneficial owner(s) of an entity or legal arrangement. They will also be obligated to report to the entity in charge of the central registers any discrepancies between the information on beneficial owners available in those registers and the information available to them, without being hindered by bank secrecy and confidentiality.
MEPs should propose the creation of a one-stop-shop for financial intelligence units (FIU.net one-stop-shop). The one-stop shop will be developed by the European AMLA within 3 years and will be operational within 5 years of the entry into force of the regulation. This electronic filing system would provide a single point of access for suspicious transaction reports, in a secure manner, through secure communication channels and by means of a standardised form for use by reporting entities.
On cash payments, the EU Council followed the European Commission’s original proposal (see EUROPE 13079/3), which included a ban on cash payments of more than €10,000. MEPs are expected to vote for a lower amount - €7,000.
Finally, the regulation also covers crypto-assets. Crypto-assets service providers will have to verify facts and information about their customers. The EU Council required them to apply customer due diligence measures when carrying out transactions of €1,000 or more and added measures to mitigate the risks associated with transactions with self-hosted wallets.
The MEPs will reportedly strengthen as well the identification processes for crypto-asset holders. They want the AMLA to develop draft regulatory technical standards to specify, taking into account of the latest technological developments, the criteria and means for the identification and verification of the originator or beneficiary of a transaction with a self-hosted wallet.
To consult the compromise amendments on the proposed 'AMLD6' directive: https://aeur.eu/f/62e ; and on the regulation: https://aeur.eu/f/62f (Original version in French by Anne Damiani)