The European Union has inched closer towards a deal on a new anti-money laundering package, following a key agreement reached between the Council and the European Parliament.
The institutions described the new legislation as a major step towards an EU single rulebook, prevent disparities between Member States, addressing lack of enforcement in individual Member States, and providing directly applicable European rules to ensure common fight against criminal activity.
For the first time, the provisional agreement on an anti-money laundering regulation will comprehensively standardise rules across the EU, eliminating potential loopholes exploited by criminals to launder illicit proceeds or fund terrorist activities through the financial system.
The new EU AML bills provide access to beneficial ownership information and give more powers to entities such as the FIAU to analyse and detect money laundering and terrorist financing cases as well as to suspend suspicious transactions. Professional football clubs were also included under the new framework, and these will be obliged to verify their customers’ identity, monitor transactions and report any suspicious transaction to FIUs as from 2029.
EU strengthens tools against VAT fraud
New transparency regulations came into force across the European Union, providing Member States with enhanced tools to combat Value-Added Tax fraud.
These regulations strengthen tax administrations of EU Member States by furnishing them with payment information, facilitating the identification of VAT fraud more effectively. The regulation addresses VAT non-compliance and fraud within the e-commerce sector, which has been identified as particularly susceptible to such issues. The prevalence of VAT non-compliance in e-commerce contributes to gaps in tax revenues crucial for funding essential public services.
One significant challenge involves online sellers lacking a physical presence in an EU Member State, who sell goods and services to EU consumers without registering for VAT anywhere in the EU or by reporting lower values for their online sales than the actual amount. Strengthening the tools available to Member States is essential for detecting and curbing such illicit practices.
The new system leverages the pivotal role played by payment service providers (PSPs), including banks, e-money institutions, payment institutions, and post office services, collectively handling over 90% of online purchases in the EU.
The new regulations oblige these PSPs are required to monitor the recipients of cross-border payments. Additionally, starting from April 1, they must transmit information on individuals or entities receiving more than 25 cross-border payments per quarter to the tax administrations of EU Member States. This information will be centralized in a newly established European database called the Central Electronic System of Payment information (CESOP), developed by the European Commission.
Economic and social partners call for better energy connectivity
Transnational electricity and gas grids are essential in connecting the Union and must be strengthened through targeted investment, according to the European Economic and Social Committee.
The efficient supply of electricity and gas to various EU Member States relies heavily on cross-border energy flows. To enhance the Union’s sustainable energy capacity, it is imperative to enhance energy infrastructure by implementing interconnectors between neighbouring countries, the EEC said in an opinion transmitted to the EU’s major institutions.
Oliver Röpke, EESC President, said that the economic and social partners feel that in order to achieve the green transition and strategic energy autonomy, a structural change to Europe’s energy system was required. “The last two years have been characterised by the energy crisis, affecting the livelihoods of European citizens and leading to a cost-of-living crisis. Now is the time to truly tackle these issues which make up the very fabric of the EU energy system – starting with our energy grid”. he added.
Belgium, currently holding the EU’s rotating Presidency has placed enhancing energy connectivity as a key objective of its six-month tenure.
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