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« Mt. Gox wins bankruptcy protection but fraud allegations fly | Main | Do you believe in compliance miracles? »
Wednesday
Mar122014

EC proposes stricter AML rules

José Manuel Barroso, President of the European Commission (image courtesy of the EC)The European Commission issued two proposals Tuesday to respond to new threats from money laundering and terrorist financing.

The rules were last revised in February 2012.

The new rules include a directive on preventing the use of the financial system for the purpose of money laundering and terrorist financing, and a tighter regulation about what information must accompany fund transfers to ensure "due traceability."

The proposals take into account the latest recommendations of the U.S. Treasury's Financial Action Task Force (FATF).

The proposed rules require businesses to have adequate controls and procedures and to generate more information about their customers.

Politically exposed persons (PEPs) -- people who may represent a higher risk because of political positions they hold -- will include those residing in EU member states as well as non-EU citizens and residents and those in international organizations. Included are heads of state, members of government, members of parliaments and judges of supreme courts, among others.

Cash payments for goods or services of €7,500 or more are flagged (the current threshold is €15,000).

This new rules must be adopted by the European Parliament and the Council of Ministers before becoming law.

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Julie DiMauro is the executive editor of FCPA Blog and can be reached here.