EU tightens grip on money laundering with new Frankfurt agency

New rules are designed to enhance verification processes of customer identities at various businesses, including banks and real estate firms. These institutions must notify the appropriate EU member state officials of suspicious activities.

In line with the updated rules, the Anti-Money Laundering and Counter-Terrorism Financing Office (AMLA) will be established in Frankfurt. This office will oversee financial entities identified as high-risk and step in when existing supervisory measures fail. Additionally, AMLA will serve as a central mediator for supervisory disputes and as a coordination centre for national regulatory bodies.

The regulation that has sparked significant discussion is the restriction on cash payments over £8,600. This cap will affect professional market participants, such as businesses engaging in consumer transactions. Private transactions between individuals, however, will not be subject to this limit.

Strict oversight will be given to individuals whose assets surpass £43 million (converted from 50 million euros), targeting exceptionally wealthy persons.

Starting in 2029, professional football clubs involved in significant financial dealings with investors or sponsors, including advertisers, will be obliged to confirm the identity of their clients, track transactions, and report any irregularities to the relevant EU member state authorities.

These regulations are pending formal endorsement by the Council of the European Union before they are published in the Official Journal of the EU.

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