The European Commission has submit A new proposal requires crypto-asset service providers to collect additional anti-money laundering or AML information from users who use cryptocurrencies for remittances. The stated purpose of the proposal is to prevent further spread of money laundering activities within the EU.
According to the proposal, the service provider that makes the transfer must have the name, account number, location of the account, and information used to process the transaction. The proposal also requires the address of the initiator, official personal document number, customer ID number or date and place of birth. The service provider also needs to ensure that the transfer includes the name and account number of the beneficiary, as well as information about the location of the account. The beneficiary’s encrypted asset provider also needs to have appropriate procedures to detect whether the transfer initiator’s information is included or missing.
These additional information requirements will be effective when the transfer amount exceeds 1,000 Euros or a series of payments seem to be interrelated and the total amount exceeds 1,000 Euros. The committee stated in the proposal:
“In order not to impair the efficiency of payment systems and encrypted asset transfer services, and to balance the risks of underground transactions due to too strict identification requirements, and the potential terrorist threats brought about by the transfer of small funds.”
If there are a series of payments exceeding 1,000 Euros but they do not seem to be connected, the payment service provider does not need to verify the information unless “affects the payment of funds in cash or anonymous electronic money,” or “there are reasonable grounds to suspect money laundering or terrorist financing.”
The update requirements are Four legislative proposals Proposed by the European Commission on July 20. All proposals are aimed at improving the detection of suspicious transactions, preventing money laundering and funding terrorist activities. The European Parliament will have the final decision on these proposals, and these proposals may take up to two years to become law.