European Union: Passed Regulation on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing by European Parliament

On 24 April 2024, the European Parliament passed the regulation on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing. The regulation expands the list of obliged entities to include all crypto-asset service providers (CASPs), requiring them to conduct due diligence on their customers. This includes verifying facts and information about their customers and reporting suspicious activity. CASPs will need to apply customer due diligence measures when carrying out transactions amounting to EUR 1’000 or more. The regulation also introduces measures to mitigate risks in relation to transactions with self-hosted wallets.