New regulation on information accompanying transfers

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL ON INFORMATION ACCOMPANYING TRANSFERS OF FUNDS AND SOME CRYPTOASSETS (DRAFT 20.07.2021)

[New Regulation on information accompanying transfers]

go to the page of the draft New Regulation on accompanying information

Summary

The current Regulation 2015/847 on information accompanying transfers of funds covers only those transfers that involve cash defined as banknotes and coins, accounting records or electronic money. However, the Regulation does not cover transfers of virtual assets. The New Regulation on information accompanying transfers is intended to fill this gap and bring this type of transfer into the realm of EU AML/CFT regulation.

Impact

The new Regulation on accompanying information will primarily impact entities involved in the trading or brokering of cryptoassets. Currently, cryptoasset transfers do not require the entities involved in such activities to attach any information to the transfers. Once the New Regulation on accompanying information comes into force, any such transfer will have to be accompanied by information about the person from whom the cryptoassets originated and the person who is the beneficiary of the transfer. Entities performing such transfers will also be required to adopt appropriate internal procedures to detect and verify the required information.