Edited by Sergio Silvestri

The time is ripe for a European Anti-Money Laundering Authority and the adoption of new transparency rules for cryptocurrency transfers.

The Financial Times and Reuters broke the news in recent days. Money laundering is a major problem within the EU, with Europol estimating the value of suspicious transactions at 1,3% of gross domestic product. A report from the European Court of Auditors last month warned that the current supervisory framework is "fragmented and poorly coordinated" and much more needs to be done to ensure that EU law in this area is implemented "promptly and consistently."

Among the most high-profile cases that would push the EU to take action is that of Danske Bank and the over €200 billion in suspicious transactions that passed through its Estonian branch between 2007 and 2015. National authorities are insufficient to decisively combat money laundering, terrorist financing, and organized crime. For this reason, the European Commission is proposing a new Anti-Money Laundering Authority (AMLA), which, with a staff of 250, could begin operations in 2024 and over time become the cornerstone of a supervisory system also comprised of national authorities. This new body would coordinate national agencies and assist them in applying the single rulebook and ensuring consistent, high-quality risk assessment standards and methodologies. The new authority would also directly supervise the "riskiest" financial sector firms with operations in a number of EU member states. The package, to be developed by the European Parliament and the member states, will also create a single EU rulebook. The new authority will be able to impose fines, with total penalties not exceeding 10% of annual turnover or €10 million, whichever is higher. The project would also include new EU requirements for cryptocurrency service providers to collect and make accessible data on the originators and beneficiaries of transfers of these assets. Currently, the lack of regulation in the sector fosters money laundering and terrorist financing, as illicit funds are also transferred in virtual currencies.