The European Parliament has given its support to an agreement reached with the European Council that will improve transparency over beneficial owners of firms operating in the EU, and also proposes closer regulation for virtual currencies, like Bitcoin, to prevent them being used for money laundering and terrorism financing.
The agreement represents the fifth and latest update to the EU’s Anti-money laundering Directive and is partly a response to the terrorist attacks of 2015 and 2016 in Paris and Brussels, as well as the Panama Papers leaks.
According to MEPs, the reforms giving citizens the right to access information on the beneficial owners of firms that operate in the EU could help quash the corrupt use of letterbox companies created to launder money, hide wealth and avoid paying taxes - a practice which received widespread attention in the wake of the Panama Papers.
The new measures also address risks linked to prepaid cards and virtual currencies. In a bid to end the anonymity associated with virtual currencies, virtual currency exchange platforms and custodian wallet providers will, like banks, have to apply customer due diligence controls, including customer verification requirements.
These platforms and providers will also have to be registered, as will currency exchanges and cheque cashing offices, and trust or company services providers.
“Criminal behaviour hasn’t changed,” commented Krišjanis KARINŠ (EPP, LV), co-rapporteur. “Criminals use anonymity to launder their illicit proceeds or finance terrorism. This legislation helps address the threats to our citizens and the financial sector by allowing greater access to the information about the people behind firms and by tightening rules regulating virtual currencies and anonymous prepaid cards.”
Contact Our Cryptocurrency Lawyers, London
Selachii is a dynamic litigation law firm based in Kensington, London. Our specialist cryptocurrency and Bitcoin solicitors are highly experienced in the risks associated with Bitcoin. We work with both businesses and private individuals, giving them legal advice and support which is unique to them and their situation. Contact us today to find out more about our services
