Regulation (EU) 2023/1113 on information accompanying transfers of funds and certain crypto-assets and amending Directive (EU) 2015/849

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Series Details L 150, Pages 1-39
Publication Date 09/06/2023
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Summary:

Regulation (EU) 2023/1113 - adopted by the co-legislators on 31 May 2023 - introducing a recast of Regulation 2015/847/EU on information accompanying transfers of funds. This is a text with EEA relevance.

Further information:

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 this Act sought to make it possible to trace transfers of crypto-assets and limit large cash payments. This Regulation lays down rules on the information on payers and payee accompanying transfers of funds, in any currency, and on the information on originators and beneficiaries accompanying transfers of crypto-assets, for the purposes of preventing, detecting and investigating money laundering and terrorist financing, where at least one of the payment service providers or crypto-asset service providers involved in the transfer of funds or transfer of crypto-assets is established or has its registered office in the European Union (EU). It also lays down rules on internal policies, procedures and controls to ensure implementation of restrictive measures where at least one of the payment service providers or crypto-asset service providers involved in the transfer of funds or transfer of crypto-assets is established or has its registered office in the EU.

The draft law was adopted 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). It delivered on some of the pillars structuring the framework unveiled by a Communication adopted in May 2020 to address money laundering and terrorist financing risks. The Council of the European Union adopted its general approach concerning the proposal on 1 December. The plenary of the European Parliament endorsed a negotiating position on 6 April 2022. An informal agreement between the co-legislators on a compromise text for this file was reached on 29 June. This was formally endorsed by the Parliament on 20 April 2023 and by the Council on 16 May. The Act was signed by the co-legislators on 31 May 2023 and published in the Official Journal on 9 June 2023.

Source Link http://data.europa.eu/eli/reg/2023/1113/oj
Related Links
Commentary and Analysis
eucrim: News, 05/08/2021: AML Package IV: EU Traceability of Funds Legislation to Be Extended to Crypto-Assets https://eucrim.eu/news/aml-package-iv-eu-traceability-of-funds-legislation-to-be-extended-to-crypto-assets/
Linklaters: Blog, 14/06/2022: EU debates how to apply travel rule to cryptoassets https://www.linklaters.com/en/insights/blogs/fintechlinks/2022/june/eu-debates-how-to-apply-travel-rule-to-cryptoassets
Deloitte: News, 07/07/2022: EU strikes a deal on “travel rule” for crypto-asset transfers https://www2.deloitte.com/lu/en/pages/financial-services/articles/europe-strikes-deal-travel-rule-crypto-asset-transfers.html
Willkie Compliance: Insight, 12/08/2022: EU Extends “Travel Rule” to Crypto Asset Service Providers, Raising Data Privacy Concerns https://complianceconcourse.willkie.com/articles/insights-2022-20220812-eu-extends-travel-rule-to-crypto/
Pinsent Masons: Out-Law News, 03/05/2023: Crypto-asset transfers to be traced in the EU under new rules https://www.pinsentmasons.com/out-law/news/crypto-asset-transfers-to-be-traced-in-the-eu-under-new-rules

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
EurActiv, 30/03/2022: Crypto community mobilises against MEPs’ transfer transparency rules https://www.euractiv.com/section/digital/news/crypto-community-mobilises-against-meps-transfer-transparency-rules/
Reuters, 31/03/2022: EU lawmakers back new tracing rule for crypto transfers https://www.reuters.com/world/europe/eu-lawmakers-back-new-tracing-rule-crypto-transfers-2022-03-31/
Euronews, 31/03/2022: EU lawmakers back tough traceability rules on crypto transfers in fight against money laundering https://www.euronews.com/next/2022/03/31/eu-lawmakers-target-crypto-transfers-in-battle-against-money-laundering
Politico, 27/04/2022: Crypto campaign targets EU ‘track-and-trace’ bill at 11th hour https://www.politico.eu/article/crypto-campaign-target-eu-meps-transfer-funds-regulation/
Bloomberg, 29/06/2022: EU Moves Closer to Strict Anti-Money Laundering Rules on Crypto https://www.bloomberg.com/news/articles/2022-06-29/eu-moves-closer-to-strict-anti-money-laundering-rules-on-crypto?leadSource=uverify%20wall
Associated Press (AP News), 30/06/2022: Crypto rules to make Europe a global leader as prices plunge https://apnews.com/article/cryptocurrency-technology-european-union-5bf12e63324d3a557b63110a9fb85177
TechCrunch, 01/07/2022: Crypto traceability and market rules agreed by EU lawmakers https://techcrunch.com/2022/07/01/crypto-regulation-eu/
Euronews, 01/07/2022: EU agrees on landmark crypto regulation in wake of Terra meltdown and Bitcoin plunge https://www.euronews.com/next/2022/07/01/eu-agrees-on-landmark-mica-crypto-regulation-in-wake-of-terra-meltdown-and-bitcoin-plunge
The Sofia Globe, 20/04/2023: Crypto-assets: European Parliament approves new rules for tracing transfers in the EU https://sofiaglobe.com/2023/04/20/crypto-assets-european-parliament-approves-new-rules-for-tracing-transfers-in-the-eu/
Reuters, 16/05/2023: EU states approve world's first comprehensive crypto rules https://www.reuters.com/technology/eu-states-approve-worlds-first-comprehensive-crypto-rules-2023-05-16/

Official
EUR-LEX: COM(2021)422: Proposal for a Regulation on information accompanying transfers of funds and certain crypto-assets (recast) https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=COM:2021:422:FIN
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 Parliament: Legislative Observatory: Procedure File for Proposal on Information accompanying transfers of funds and certain crypto-assets (2021/0241(COD)) https://oeil.secure.europarl.europa.eu/oeil/popups/ficheprocedure.do?reference=2021/0241(COD)
European Parliament: Legislative Train Schedule: Proposal for a regulation on information accompanying transfers of funds and certain crypto-assets (recast) https://www.europarl.europa.eu/legislative-train/theme-an-economy-that-works-for-people/file-revision-of-the-regulation-on-transfers-of-funds
General Secretariat of the Council: Policies: Fight against money laundering and terrorist financing https://www.consilium.europa.eu/en/policies/fight-against-terrorism/fight-against-terrorist-financing/
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
Council of the European Union: Press Release, 01/12/2021: Anti-money laundering: Council agrees its negotiating mandate on transparency of crypto-asset transfers https://www.consilium.europa.eu/en/press/press-releases/2021/12/01/anti-money-laundering-council-agrees-its-negotiating-mandate-on-transparency-of-crypto-asset-transfers/
European Parliament: Press Release, 31/03/2022: Crypto assets: new rules to stop illicit flows in the EU https://www.europarl.europa.eu/news/en/press-room/20220324IPR26164/
Council of the European Union: Press Release, 29/06/2022: Anti-money laundering: Provisional agreement reached on transparency of crypto asset transfers https://www.consilium.europa.eu/en/press/press-releases/2022/06/29/anti-money-laundering-provisional-agreement-reached-on-transparency-of-crypto-asset-transfers/
European Parliament: Press Release, 30/06/2022: Cryptocurrencies in the EU: deal struck between Parliament and Council https://www.europarl.europa.eu/news/en/press-room/20220613IPR32840/
European Parliament: Press Release, 20/04/2023: Crypto-assets: green light to new rules for tracing transfers in the EU https://www.europarl.europa.eu/news/en/press-room/20230414IPR80133/
Council of the European Union: Press Release, 16/05/2023: Anti-money laundering: Council adopts rules which will make crypto-asset transfers traceable https://www.consilium.europa.eu/en/press/press-releases/2023/05/16/anti-money-laundering-council-adopts-rules-which-will-make-crypto-asset-transfers-traceable/

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