Regulation 2024/1624 - Prevention of the use of the financial system for the purposes of money laundering or terrorist financing

Please note

This page contains a limited version of this dossier in the EU Monitor.

1.

Current status

This regulation entered into force on July  9, 2024.

2.

Key information

official title

Regulation (EU) 2024/1624 of the European Parliament and of the Council of 31 May 2024 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing
 
Legal instrument Regulation
Number legal act Regulation 2024/1624
Original proposal COM(2021)420 EN
CELEX number i 32024R1624

3.

Key dates

Document 31-05-2024; Date of vote
Signature 31-05-2024
Effect 09-07-2024; Entry into force Date pub. +20 See Art 90
10-07-2027; Application See Art 90
10-07-2029; Application Partial application See Art 90
Deadline 09-07-2027; See Art 85.2
10-07-2030; See Art 88
10-07-2032; Review See Art 87
End of validity 31-12-9999

4.

Legislative text

 

Official Journal

of the European Union

EN

L series

 

 

2024/1624

19.6.2024

REGULATION (EU) 2024/1624 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

of 31 May 2024

on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing

(Text with EEA relevance)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 114 thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

Having regard to the opinion of the European Central Bank (1),

Having regard to the opinion of the European Economic and Social Committee (2),

Acting in accordance with the ordinary legislative procedure (3),

Whereas:

 

(1)

Directive (EU) 2015/849 of the European Parliament and of the Council (4) constitutes the main legal instrument for the prevention of the use of the Union’s financial system for the purposes of money laundering and terrorist financing. That Directive sets out a comprehensive legal framework, which Directive (EU) 2018/843 of the European Parliament and the Council (5) further strengthened by addressing emerging money laundering and terrorist financing risks and increasing transparency of beneficial ownership. Notwithstanding the achievements under that legal framework, experience has shown that further improvements should be introduced to adequately mitigate money laundering and terrorist financing risks and to effectively detect criminal attempts to misuse the Union’s financial system for criminal purposes.

 

(2)

The main challenge identified in respect of the application of the provisions of Directive (EU) 2015/849 that lay down obligations for obliged entities, is the lack of direct applicability of the rules set out in those provisions and a fragmented approach along national lines. Although those rules have existed and evolved over three decades, they are still implemented in a manner not fully consistent with the requirements of an integrated internal market. Therefore, it is necessary that rules on matters currently covered in Directive (EU) 2015/849 which could be directly applicable by the obliged entities concerned are addressed in a Regulation in order to achieve the desired uniformity of application.

 

(3)

This new instrument is part of a comprehensive package that aims to strengthen the Union’s framework for anti-money laundering and countering the financing of terrorism (‘AML/CFT’). Together, this Regulation, Directive (EU) 2024/1640 of the European Parliament and of the Council (6) and Regulations (EU) 2023/1113 (7) and (EU) 2024/1620 (8) of the European Parliament and of the Council will form the legal framework governing the AML/CFT requirements to be met by obliged entities and underpinning the Union’s AML/CFT institutional framework, including the establishment of an Authority for anti-money laundering and countering the financing of terrorism (AMLA).

 

(4)

Money laundering and terrorist financing are frequently carried out in an international context. Measures adopted at Union level, without taking into account international coordination and cooperation, would have very limited effect. The measures adopted by the Union in that field should therefore be compatible with, and at least as stringent as, actions undertaken at international level. Union action should continue to take particular account of the Financial Action Task Force (FATF) Recommendations and instruments of other international bodies active in the fight against money laundering and terrorist financing. With a view to reinforcing the efficacy of the fight against money laundering and terrorist financing, the relevant Union legal acts should, where appropriate, be aligned with...


More

This text has been adopted from EUR-Lex.

5.

Original proposal

 

6.

Sources and disclaimer

For further information you may want to consult the following sources that have been used to compile this dossier:

This dossier is compiled each night drawing from aforementioned sources through automated processes. We have invested a great deal in optimising the programming underlying these processes. However, we cannot guarantee the sources we draw our information from nor the resulting dossier are without fault.

 

7.

Full version

This page is also available in a full version containing the legal context, de Europese rechtsgrond, other dossiers related to the dossier at hand and the related cases of the European Court of Justice.

The full version is available for registered users of the EU Monitor by ANP and PDC Informatie Architectuur.

8.

EU Monitor

The EU Monitor enables its users to keep track of the European process of lawmaking, focusing on the relevant dossiers. It automatically signals developments in your chosen topics of interest. Apologies to unregistered users, we can no longer add new users.This service will discontinue in the near future.