European Union: Issued European Commission proposal for a Regulation on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing

On 20 July 2021, the European Commission issued a proposal for a Regulation on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing (AML/CFT). The proposal includes provisions on beneficial ownership information and requires all legal entities to obtain and maintain accurate beneficial ownership information, with detailed rules for identification. Further, the proposal prohibits the provision and custody of anonymous crypto-asset wallets. Unlisted companies are barred from issuing bearer shares and must instead register these shares. Bearer share warrants can only be issued in intermediated form.