Regulation (EU) 2024/1624 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing

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Series Details (L) 2024/1624
Publication Date 19/06/2024
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Summary:

Regulation (EU) 2024/1624 - adopted by the co-legislators on 31 May 2024 - setting out a common rulebook aimed at preventing the use of the financial system for the purposes of money laundering (ML) and terrorist financing (TF). This is a text with EEA relevance.

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. Notably, these highlighted the for a combination of harmonised rules via an AML/CFT Regulation and stronger rules on the national AML/CFT systems through an AML/CFT Directive. The EU Security Union Strategy 2020-2025 highlighted the importance of enhancing the EU's framework for for anti-money laundering and countering terrorist financing. As a follow-up, the Commission published in May 2020 an Action Plan setting out a common comprehensive framework on addressing such issues.

This Regulation lays down rules concerning the measures to be applied by obliged entities to prevent money laundering and terrorist financing, the beneficial ownership transparency requirements for legal entities, express trusts and similar legal arrangements, and measures to limit the misuse of anonymous instruments.

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). The Council adopted its general approach to the proposal on 7 December 2022. The plenary of the European Parliament endorsed a negotiating position on 19 April 2023. An informal agreement between the co-legislators on a compromise text for this file was reached on 18 January 2024. This was formally endorsed by Parliament on 24 April and by the Council on 30 May. The Act was signed by the co-legislators on 31 May 2024 and published in the Official Journal on 19 June 2024.

Source Link http://data.europa.eu/eli/reg/2024/1624/oj
Related Links
Commentary and Analysis
European Parliamentary Research Service (EPRS): Briefing, 20/12/2021: Anti-money-laundering package - Initial Appraisal of a European Commission Impact Assessment https://www.europarl.europa.eu/thinktank/en/document/EPRS_BRI(2021)699467
European Parliamentary Research Service (EPRS): Briefing, 20/12/2021: Proposal for a regulation to fight money laundering and counter terrorist financing https://www.europarl.europa.eu/thinktank/en/document/EPRS_BRI(2021)698862
Mayer Brown: Insights, 22/01/2024: EU institutions reach political agreements on anti-money laundering and countering the financing of terrorism package https://www.mayerbrown.com/en/insights/publications/2024/01/eu-institutions-reach-political-agreements-on-anti-money-laundering-and-countering-the-financing-of-terrorism-package
European Parliamentary Research Service (EPRS): At a Glance, 16/04/2024: Anti-money-laundering package https://www.europarl.europa.eu/thinktank/en/document/EPRS_ATA(2024)760419

Official
EUR-LEX: COM(2021)420: Proposal for a Regulation on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=COM:2021:420: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
Publications Office of the EU: EU Law Tracker: Proposal for a Regulation on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing https://law-tracker.europa.eu/procedure/2021_239?lang=en
European Parliament: Legislative Observatory: Procedure File for Proposal on Prevention of the use of the financial system for the purposes of money laundering or terrorist financing (2021/0239(COD)) https://oeil.secure.europarl.europa.eu/oeil/popups/ficheprocedure.do?lang=en&reference=2021/0239(COD)
European Parliament: Legislative Train Schedule: EU anti-money laundering (AML) and Combating the Financing of Terrorism (CFT) single rule book https://www.europarl.europa.eu/legislative-train/theme-an-economy-that-works-for-people/file-eu-amlcft-single-rule-book
European Commission: Financial Stability, Financial Services & Capital Markets Union: Anti-money laundering and countering the financing of terrorism at EU level https://finance.ec.europa.eu/financial-crime/anti-money-laundering-and-countering-financing-terrorism-eu-level_en
General Secretariat of the Council (EU): Policies: Fight against money laundering and terrorist financing in the EU 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
S&D EP Group: Newsroom, 20/07/2021: New single rulebook gives teeth to EU anti-money laundering laws https://www.socialistsanddemocrats.eu/newsroom/new-single-rulebook-gives-teeth-eu-anti-money-laundering-laws
European Parliament: Press Release, 22/03/2022: MEPs launched work on Anti-Money Laundering package with expert discussion https://www.europarl.europa.eu/news/en/press-room/20220315IPR25505/
Council of the European Union: Press Release, 17/12/2022: Anti-money laundering: Council agrees its position on a strengthened rulebook https://www.consilium.europa.eu/en/press/press-releases/2022/12/07/anti-money-laundering-council-agrees-its-position-on-a-strengthened-rulebook/
European Parliament: Press Release, 28/03/2023: New EU measures against money laundering and terrorist financing https://www.europarl.europa.eu/news/en/press-room/20230327IPR78511/
Council of the European Union: Press Release, 18/01/2024: Anti-money laundering: Council and Parliament strike deal on stricter rules https://www.consilium.europa.eu/en/press/press-releases/2024/01/18/anti-money-laundering-council-and-parliament-strike-deal-on-stricter-rules/
European Parliament: Press Release, 18/01/2024: Deal on a single rulebook against money laundering and terrorist financing https://www.europarl.europa.eu/news/en/press-room/20240117IPR16880/
Renew Europe EP Group: Newsroom, 18/01/2024: Anti-money laundering package: deal strengthens the common framework to crackdown on dirty money in Europe https://www.reneweuropegroup.eu/news/2024-01-18/anti-money-laundering-directive-amld-deal-strengthens-the-common-framework-to-crackdown-on-dirty-money-in-europe
European Parliament: Press Release, 24/04/2024: New EU rules to combat money-laundering adopted https://www.europarl.europa.eu/news/en/press-room/20240419IPR20586/
European Commission: Remarks by Commissioner McGuinness at the European Parliament plenary debate on Anti-Money Laundering (24 April 2024) https://ec.europa.eu/commission/presscorner/detail/en/speech_24_2289
Council of the European Union: Press Release, 30/05/2024: Anti-money laundering: Council adopts package of rules https://www.consilium.europa.eu/en/press/press-releases/2024/05/30/anti-money-laundering-council-adopts-package-of-rules/
European Banking Authority (EBA): Press Release, 26/06/2024: The EBA welcomes the entry into force of the framework establishing the anti-money laundering and countering the financing of terrorism authority https://www.eba.europa.eu/publications-and-media/press-releases/eba-welcomes-entry-force-framework-establishing-anti-money-laundering-and-countering-financing

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