EU tightens rules against money laundering, terrorist financing

The European Union (EU) on Monday adopted a regulation with strengthened rules aimed at preventing money laundering and terrorist financing, according to an EU statement.

The new rules reflect the need for the EU to adapt its legislation to take account of the development of technology and other means at the disposal of criminals.

The main element is a reduction of the cash payment threshold from 15,000 euros (16,142 U.S. dollars) to 10,000 euros for the inclusion of traders in goods, and also including providers of gambling services.

It also includes tighter rules on customer due diligence. Obliged entities such as banks are required to take enhanced measures where the risks are greater, and can take simplified measures where risks are demonstrated to be smaller.

For gambling services posing higher risks, the adopted legislation requires service providers to conduct due diligence for transactions of 2,000 euros or more.

The regulation will strengthen EU rules against money laundering and ensure consistency with the approach followed at international level, which deals more specifically with information accompanying transfers of funds.

The regulation will be directly applicable and the EU member states will have two years to transpose it into national law. (1 euro = 1.08 U.S. dollars) Endit