On 28th of March 2023, the ECON and LIBE Committees held a joint meeting where they voted on the joint ECON/LIBE draft reports related to AML Regulation proposal.
The main changes in the adopted version are the following:
- the definition of ‘financial institutions’ now includes also crypto-asset service providers (CASPs);
- for enhanced due diligence measures for correspondent relationships with non-EU entities providing crypto-asset services, the adopted text requires CASPs now to satisfy a set of additional requirements on top of the customer due diligence measures in the provision on customer due diligence measures.
- regarding enhanced due diligence of crypto-assets transactions involving a self-hosted address, CASPs are required, in addition to the customer due diligence measures in the provision on customer due diligence measures, to have in place appropriate risk management systems and to apply mitigating measures commensurate with the risks identified;
- in connection with the monitoring of transactions with regard to risks posed by targeted financial sanctions, credit and financial institutions must now screen the information accompanying a transfer of funds or crypto-assets to assess whether the payee or the payer of a funds transfer, or the originator or the beneficiary of a transfer of crypto-assets, are subject to targeted financial sanctions;
- rules on outsourcing are altered to say that obliged entities may outsource tasks deriving from requirements under the AML Regulation for the purpose of performing customer due diligence to an agent or external service provider. These tasks can be outsourced to a natural or legal person, except for natural or legal persons residing or established in third countries.
