European Union: Adopted Council of EU general approach on Regulation on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing

On 7 December 2022, the Council of the European Union adopted its position on Regulation on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing (AML/CFT). Under the Council general approach, the AML/CFT due diligence rules will be extended to the crypto-asset sector. The Crypto-asset service providers carrying out transactions of EUR 1'000 or more will be required to conduct due diligence on their customers. The Council also agreed on measures to mitigate risks related to self-hosted wallet transactions and introduced enhanced due diligence measures for cross-border correspondent relationships for crypto-asset service providers.