European Union: Approved European Parliament negotiation mandate for proposals to reform the EU’s policies on anti-money laundering and countering the financing of terrorism

On 17 April 2023, the European Parliament announced the approval of its negotiation mandate on the Regulation on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing (AML/CFT). Under the proposed Regulation, the AML/CFT due diligence rules will be extended to the crypto-asset sector. Furthermore, the Parliament amended the proposed Regulation, expanding the scope of the diligence requirements to non-fungible token platforms by creating new categories of obliged entities. Finally, under the proposed amendments, the Decentralised Autonomous Organisations (DAO) and other Decentralised Finance (DeFi) arrangements would be subject to the AML/CFT rules if they are providing or performing, on behalf of another person, crypto-asset services. Following the adoption of the Parliament's position, the negotiations with the Council will start on a final version of the Regulations.