European Union: Adopted by Council Regulation on information accompanying transfers of funds and certain crypto-assets

On 16 May 2023, the Council of the European Union adopted the Regulation on information accompanying transfers of funds and certain crypto-assets. The Regulation is part of the EU anti-money laundering and countering terrorism financing package (AML/CFT), presented by the Commission on 20 July 2021. The Regulation was passed by the European Parliament on 20 April 2023. The Regulation aims to ensure the traceability of crypto-asset transfers by introducing an obligation for entities providing crypto-asset services to collect and disclose the information it has on crypto transactions, including the originator and beneficiary. The providers will be required to verify whether information on the payer or the payee is accurate for transfers over EUR 1000. Finally, the crypto-asset services providers will be required to check the list of entities that are at high risk of money laundering or other criminal activities before they approve any crypto-asset transfers. The Regulation enters into force on the twentieth day after its publication in the Official Journal of the European Union.