Proposal for a Regulation on information accompanying transfers of funds and certain crypto-assets (recast)

Author (Corporate)
Series Details COM (2021) 422
Publication Date 20/07/2021
Content Type ,

Summary:

Legislative initiative tabled by the European Commission on 20 July 2021, introducing a recast of Regulation 2015/847/EU on information accompanying transfers of funds.

Further information:

In July 2019, the European Commission unveiled a set of reports aimed at informing European and national authorities on how to better address money laundering and terrorist financing risks. As a follow-up, the Commission published in May 2020 an Action Plan setting out a common comprehensive framework on addressing such issues. This draft law delivers on some of the pillars structuring that framework.

Regulation (EU) 2015/847 was adopted to ensure the full traceability of transfer of funds. However, it only applies to those transfers which are defined as banknotes and coins, scriptural money and electronic money, according to Directive 2015/2366. Only in 2018 new international standards were adopted to create requirement for information sharing in transfer of virtual assets of the same nature that the ones existing for information sharing in transfer of funds. Virtual had so far remained outside the scope of EU law on financial services, exposing holders of crypto-assets to money laundering and financing of terrorism risks.

The revision of Regulation 2015/847/EU aims to make it possible to trace transfers of crypto-assets and limit large cash payments.

This initiative was tabled by the European Commission on 20 July 2021, as part of a legislative package focusing on anti-money laundering (AML) and countering the financing of terrorism (CFT).

Source Link https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=COM:2021:422:FIN
Related Links
News
The Guardian, 21/07/2021: Bitcoin price slides amid EU call to make transfers traceable, and rise of ‘stablecoins’ https://www.theguardian.com/technology/2021/jul/21/bitcoin-price-slides-amid-eu-call-to-make-transfers-traceable-and-rise-of-stablecoins
City AM, 21/07/2021: EU plans to make crypto-assets such as Bitcoin more traceable https://www.cityam.com/eu-plans-to-make-crypto-assets-such-as-bitcoin-more-traceable/
BBC News, 21/07/2021: EU plans to make Bitcoin transfers more traceable https://www.bbc.co.uk/news/technology-57901113

Official
EUR-LEX: SWD(2021)190: Staff Working Document accompanying the Proposal - Impact Assessment https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=SWD:2021:190:FIN
EUR-LEX: SWD(2021)191: Staff Working Document accompanying the Proposal - Executive Summary of the Impact Assessment https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=SWD:2021:191:FIN
European Commission: Press Release, 20/07/2021: Beating financial crime: Commission overhauls anti-money laundering and countering the financing of terrorism rules https://ec.europa.eu/commission/presscorner/detail/en/ip_21_3690
European Commission: Questions and Answers: Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) (20 July 2021) https://ec.europa.eu/commission/presscorner/detail/en/qanda_21_3689

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