An article authored by Stefanos Sofroniou, Senior Associate at Elias Neocleous & Co LLC, and recently published on Mondaq, discusses the EU’s introduction of upgraded rules concerning the tracing of transfers of funds, expanding the scope of the law to include crypto assets. The article explores how Crypto-Asset Service Providers (CASPs) participating in such transfers will be mandated to collect and verify information on senders and recipients, and the submission of this information to national AML/CFT competent authorities upon request.
Notably, in conjunction with the publication of the Markets in Crypto-Assets Regulation (MiCA) last May, the EU also published the revised Transfer of Funds (TFR) Regulation, commonly known as the Wire Transfer Regulation. This revision was part of a comprehensive legislative package presented by the Commission in 2021 to enhance and modernize the EU’s AML regime. The package included the creation of an EU AML Authority, a new AML Regulation, and a new AML Directive (AMLD 6).
The updated transfer rules aim to ensure the traceability of crypto-asset transfers by supplementing and recasting Regulation 2014/847, which addresses the traceability of fund transfers. These rules are set to be effective from 30 December 2024, coinciding with the application of the MiCA Regulation.
To view the full article on this topic on Mondaq, please click here.
For any further queries, please contact Stefanos Sofroniou at Elias Neocleous & Co LLC.