On July 10, 2020, the Members of the European Parliament (MEPs) proposed some new measures to fight against money-laundering. These include interconnected registers of beneficial owners, a preventive blacklisting policy and effective sanctions. MEPs also welcomed the European Commission’s AML/CFT Action Plan and highlighted the amendments necessary to achieve an efficient EU framework. Some of these amendments have been described below.
MEPs stressed upon the need to take a zero-tolerance approach against member states who have not yet incorporated new AML/CFT regulations into national law. Moreover, MEPs agreed that there is an urgent need to improve cooperation and information-sharing between member states.
MEPs also voiced their concerns over the lack of appropriate data to identify ultimate beneficial owners. Further, they have urged that the European Commission include crypto-assets as a supervised sector. MEPs also called for the blacklisting of the member states that are not cooperative and present high risks. Moreover, MEPs believe that the authorities must enforce freezing and confiscation of assets as this could improve cross-border cooperation. The European Central Bank must also be able to revoke the licences of any European Union-based banks that violate AML/CFT obligations. MEPs believe that such amendments can make the AML/CFT framework healthier.
