EU: What the new Anti-Money Laundering Directive means in detail

The compromise reached last Friday by representatives of the EU states and members of the European Parliament on the new anti-money laundering directive is not yet legally binding. However, here are the most important points that will affect the trade with crypto currencies.

As we have already reported, representatives of the European Parliament, the European Commission and the Council of the Member States agreed at the end of last week, after a tough struggle, on a new EU-wide anti-money laundering directive. The compromise by no means contains all the demands for better detecting and sanctioning tax offences. Numerous parliamentary proposals have failed due to opposition from the EU member states. Further details on the negotiated and rejected points can be found in the blog of Green MEP Sven Giegold. One thing is certain: it’s always moving in the direction of regulation. The circle of companies affected by the planned regulation will also be extended to include providers of electronic purses and exchange offices for virtual currencies. As usual, the official focus was on curbing money laundering, tax evasion and terrorist financing.

Goodbye Bitcoin loophole transfers?

The idea is to create a central database linking the names and addresses of Bitcoin loophole investors from the EU area with the wallet addresses on: There, investigators with a legitimate interest could check at any time which EU citizens were involved in transfers. Anyone who does not like this would have to find a wallet provider outside the EU zone in about two years‘ time. In the past, the Federal Financial Supervisory Authority BaFin and other regulatory authorities have repeatedly demanded that the same rules should apply to trading in virtual currencies as to conventional foreign exchange and commodities trading. In such transactions, the financial service providers are obliged to keep the identity of their customers in writing. Anonymous transactions are also prohibited under the new Anti-Money Laundering Directive. It remains to be seen how the EU will deal with the already known technical loopholes. What about anonymous currencies like Monero? What should be done with mixed Bitcoin credit balances whose origin has been blurred with great effort, to name just two examples?

Tax offices to be informed automatically by the news spy

In any case, more and more tax offices should come into play, which in rural regions are not yet able to do anything with the taxation of income due to the news spy trading of crypto currencies as can be read on: Is The News Spy a Scam? Read This Review Before You Sign Up! A legally prescribed notification to the responsible tax office is planned as soon as the wallet balance of an EU citizen is to be converted into fiat money, i.e. paid out to the investor’s current account, for example. For the time being, the automatic messages according to the media are only valid for trading with Bitcoin. Irrespective of the type of digital currency, such profits are subject to income tax, but here too there are already exemption limits and exceptions, as is customary in tax law.

Everything’s still the same. In addition, it remains to be seen whether the new regulation will actually be adopted in this form by the EU Parliament and all EU states. One thing is certain: as soon as this has happened, the German legislator would also be forced to convert the new directive into national law within 18 months. It will therefore be some time before we are affected by the new anti-money laundering directive. Moreover, on closer inspection, the measures do not appear to be as complete as the legislator would like them to be.

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