0622 GMT April 04, 2020
The 27 EU states were required to enact by January tighter rules to counter dirty-money risks in a wide range of sectors, including cryptocurrency exchanges, prepaid cards and shell companies, Reuters reported.
The rules were proposed in 2016 by the EU Commission in the wake of the Paris terrorist attacks which killed more than 130 people. The clampdown was meant to hamper terrorist funding and other financial crimes.
EU governments and lawmakers agreed on the new rules three years ago and then formally adopted them in 2018, but Cyprus, Hungary, the Netherlands, Portugal, Romania, Slovakia, Slovenia and Spain have not yet turned them into national laws, the EU Commission said on Wednesday.
It sent them a letter of “formal notice,” the first step of a lengthy legal procedure that could lead to fines if rules are not correctly applied.
The warnings show heightened attention by EU authorities for the fight against money laundering after a series of high-profile cases that hit major banks in the bloc in past years.
However, the commissioner responsible for money laundering, Valdis Dombrovskis, a former prime minister of Latvia, has been criticized by lawmakers for slowing down new reforms invoked after dirty-money scandals in Latvia, Denmark, Estonia, Malta, Cyprus, and other EU states.
Under the latest overhaul, cryptocurrency exchange platforms are required to identify their users, ending anonymity that could favor money laundering. It will also be easier to identify the ultimate owners of companies and trusts.