The European Union wants to take action against money laundering by banning large amounts of money in cash. Luxury items can no longer be bought anonymously. The new regulation is also aimed at professional football clubs.
BRUSSELS (APA/AFP) – Payments above 10,000 euros will be banned in the European Union in the future. On Thursday morning, the European Parliament and member state negotiators agreed on EU-wide anti-money laundering regulations aimed at closing loopholes in national laws. Luxury goods sellers must verify the identity of their customers and report suspicious transactions to the authorities.
Strict rules apply to trade in jewellery, luxury cars, private jets and ships. According to the agreement, financially strong football clubs such as FC Bayern Munich and Borussia Dortmund will also be subject to the new law from 2029. Professional football, with its billions of investments from third countries, is seen as a potential gateway for money laundering in Europe.
The super rich need to be monitored more tightly
Authorities should also closely monitor the banking transactions of cryptocurrencies and super-rich individuals with assets of at least 50 million euros. Owners of at least a quarter of the company must be registered throughout the EU. It aims, among other things, to prevent Russian oligarchs from circumventing EU sanctions as a result of the attack on Ukraine.
Tougher anti-money laundering rules for cryptocurrencies, banks, oligarchs and football clubs are “long overdue,” European Parliament negotiator Eero Heinaluma insisted. A consistent EU-wide framework closes national loopholes. “So far, member states have lost billions of euros,” explained the Finnish Social Democratic Party.
Freedom Party: “One more step towards demonetisation”
For liberal EU MEP Roman Haider, this was “another step in the coming demonetisation,” the Independent Parliamentary Club explained in a press release. “While monetary limits will be tightened even more tightly, the ECB is already planning to introduce the digital euro, which will officially supplement money but actually replace it,” Haider said.
The legislation still needs to be formally ratified by the European Parliament and member states. National authorities will be responsible for monitoring the new rules coordinated by the new European Anti-Money Laundering Authority (AMLA). Amla's place will be decided this year and Vienna has also applied for it. (APA)