EU requires crypto operators to strengthen AML policies

Tuesday 22 May 2018 10:36 CET | News

The European Council has adopted an AML directive that requires cryptocurrency exchanges operators to perform the same level of client due diligence as banks do.

These new rules come as a respond to the need for increased security in Europe by further removing the means available to terrorists, and to enable authorities disrupt criminal networks without compromising fundamental rights and economic freedoms. Cryptocurrency’s anonymity has helped launder between USD 4.2 billion and USD 5.6 billion annually, or 3% to 4% of the continent’s criminal takings, Markets Media cited the European police agency Europol.

As part of the directive, EU members will have 18 months to translate the document’s requirements into national financial regulations. In the meantime, cryptocurrency exchange should establish internal risk-based internal policies, procedures, and controls.

Other recommendations include that exchanges create the role of chief compliance officer, commit to ongoing training, and hire independent companies to test the exchange’s AML-compliance program.

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Keywords: European Council, AML, directive, cryptocurrency, CDD, Europe
Countries: World