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New EU rules to combat money laundering and terrorist financing have been adopted by members of the European Parliament (MEPs), leaving only the European Council’s endorsement before they are signed into EU law.
Regulated entities including banks, and payments and e-money institutions will need to conduct thorough checks on customers' identities and report any suspicious activities to financial intelligence units (FIUs) and other relevant authorities.
“Now money laundering has been stopped,” said Eero Heinäluoma, the MEP who led negotiations on the AML file, on X. “Almost 5 years of work got its final seal in the European Parliament.”
Mairead McGuinness, the EU’s financial services commissioner, also welcomed the news, saying that it was a “significant day for the European Union’s ongoing fight against financial crime”.
The legislative package includes heightened scrutiny for ultra-rich individuals (with wealth of more than €50m, excluding their main residence), imposes an EU-wide cash payment limit of €10,000 (except for non-professional transactions between private individuals) and implements measures to ensure compliance with targeted financial sanctions, preventing their circumvention.
Plus, from 2029, top-tier professional football clubs involved in significant financial transactions will also have to verify customers' identities, monitor transactions and report suspicious activities.
Despite rumours of a last-minute upset, MEPs also gave their blessing to the new Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA) to be established in Frankfurt.
AMLA's responsibilities will include directly supervising the riskiest financial entities, intervening in cases of supervisory failures, serving as a central coordination point for supervisors and mediating disputes between them.
Additionally, AMLA will supervise the implementation of targeted financial sanctions.
The anti-money laundering and countering the financing of terrorism (AML/CTF) package comprises three key components: the 6th Anti-Money Laundering (AML) Directive (approved with 513 votes in favour, 25 against and 33 abstentions); the EU "single rulebook" regulation (passed with 479 votes in favour, 61 against and 32 abstentions); and the Anti-Money Laundering Authority (AMLA) regulation (adopted with 482 votes in favour, 47 against and 38 abstentions).
The laws still need to be formally adopted by government representatives in the Council before publication in the EU’s official journal.
