Activities of Lukas MANDL related to 2021/0241(COD)
Shadow reports (1)
REPORT on the proposal for a regulation of the European Parliament and of the Council on information accompanying transfers of funds and certain crypto-assets (recast)
Amendments (65)
Amendment 81 #
Proposal for a regulation
Recital 2
Recital 2
(2) Regulation (EU) 2015/847 was adopted to ensure that the Financial Action Task Force (FATF) requirements on wire transfers services providers, and in particular the obligation on payment service providers to accompany transfers of funds with information on the payer and the payee, were applied uniformly throughout the Union. The latest changes introduced in June 2019 in the FATF standards on new technologies, aiming at regulating so called virtual assets and virtual asset service providers, have provided new and similar obligations for virtual asset service providers, with the purpose to facilitate the traceability of transfers of virtual assets. Thus, under those new requirements, virtual asset transfer service providers must accompany transfers of virtual assets with information on their originators and beneficiaries, that they must obtain, hold, share with counterpart at the other hand of the virtual assets transfer and make available on request to appropriatecompetent authorities.
Amendment 82 #
Proposal for a regulation
Recital 3
Recital 3
(3) Given that Regulation (EU) 2015/847 currently only applies to transfer of funds, in the meaning of banknotes and coins, scriptural money and electronic money as defined in point (2) of Article 2 of Directive 2009/110/EC, it is appropriate to extend the scope in order to also cover transfer of virtual assets. To that end, this Regulation intends to cover the transfer of crypto-assets through a crypto-asset service provider, in line with the best international standards.
Amendment 88 #
Proposal for a regulation
Recital 5 a (new)
Recital 5 a (new)
(5a) The proper use of blockchain technology allows competent authorities to better trace and investigate potential illicit transactions, as the immutability of data and the constant record of transactions on the blockchain sets up a suitable framework to seek and find relevant information on both the originator and beneficiary of any movement of assets. The blockchain technology, that has intrinsic cross-border nature, should be used to better combat money laundering, terrorist financing and criminal activity through the misuse of crypto-assets. To that end, an effective environment of exchange of relevant information should be set up, on the basis of proportionate measures, that avoid unnecessary administrative burden for crypto-assets service providers and promote high levels of consumer protection, namely on the field of data protection.
Amendment 89 #
Proposal for a regulation
Recital 6
Recital 6
(6) By reason of the scale of the action to be undertaken, the Union should ensure that the International Standards on Combating Money Laundering and the Financing of Terrorism and Proliferation adopted by FATF on 16 February 2012 and then on 21 June 2019 (revised FATF Recommendations), and, in particular, FATF Recommendation 15 on new technologies (FATF Recommendation 15), FATF Recommendation 16 on wire transfers ( ‘FATF Recommendation 16’) and the revised interpretative notes on those Recommendations , are applied uniformly throughout the Union and that, in particular, there is no discrimination or discrepancy between, on the one hand, national payments or transfers of crypto- assets within a Member State and, on the other, cross-border payments or transfers of crypto-assets between Member States. Uncoordinated action by Member States acting alone in the field of cross-border transfers of funds and crypto-assets could have a significant impact on the smooth functioning of payment systems and crypto-asset transfer services at Union level and could therefore damage the internal market in the field of financial services. The coordination, at the EU level, should ensure legal and regulatory clarity. Therefore the set of definitions should be coherent between the different legal instruments, namely this Regulation and the future Regulation on Markets in Crypto-assets and the future Regulation on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing. Harmonized rules, mainly on licencing regimes, are core priorities to reduce undue administrative burden on complying crypto-assets service providers in the internal market.
Amendment 92 #
Proposal for a regulation
Recital 13
Recital 13
(13) In addition, the Commission Action Plan of 7 May 2020 for a comprehensive Union policy on preventing money laundering and terrorism financing41 identified six priority areas for urgent action to improve the Union’s anti-money laundering and countering financing of terrorism regime, including the establishment of a coherent regulatory framework for that regime in the Union to obtain more detailed and harmonised rules, notably to address the implications of technological innovation and developments in international standards and avoid diverging implementation of existing rules. Work at international level suggests a need to expand the scope of sectors or entities covered by the anti-money laundering and countering financing of terrorism rules and to assess how they should apply to virtual assets service providers not covered so far. . This effort, that must be a common commitment at the international level and led by the Union, should not create undue obstacles for innovation in the financial sector or imply that crypto-assets businesses carry higher risk in the field of money laundering or terrorist financing, as the blockchain technology represents, rather than a risk, a field of opportunities to improve transparency and effective exchange of information on transactions. __________________ 41 Communication from the Commission on an Action Plan for a comprehensive Union policy on preventing money laundering and terrorist financing (C(2020) 2800 final).
Amendment 97 #
Proposal for a regulation
Recital 14
Recital 14
(14) In order to prevent terrorist financing, measures with the purpose of freezing the funds and the economic resources of certain persons, groups and entities have been taken, including Council Regulations (EC) No 2580/200142 , (EC) No 881/200243 and (EU) No 356/201044 . To the same end, measures with the purpose of protecting the financial system against the channelling of funds and economic resources for terrorist purposes have also been taken. [please insert reference – proposal for a directiveDirective (EU) 2015/849 of the European Parliament and onf the mechanisms to be put in place by the Member States for the prevention of the use of the financialCouncil contains a number of such measures. Those measures do not, however, fully prevent terrorists or other criminals from accessing payment systems for the purposes of money laundering or terrorist financing and repealing Directive (EU) 2015/849] and Regulation [please insert reference – proposal for a reguransferring their funds. Considering the risk of having outdated legislation oin the prevention of the use of the financial system for the purposes of money laundering or terrorist financing and repealing Directive (EU) 2015/849] contain a number of such measures. Those measures do not, however, fully prevent terrorists or other criminals from accessing payment systems for transferring their fundsfield of anti-money laundering and counter the financing of terrorism, it is essential to guarantee that this Regulation is systematically coherent with the future legislative framework. __________________ 42 Council Regulation (EC) No 2580/2001 of 27 December 2001 on specific restrictive measures directed against certain persons and entities with a view to combating terrorism (OJ L 344, 28.12.2001, p. 70). 43 Council Regulation (EC) No 881/2002 of 27 May 2002 imposing certain specific restrictive measures directed against certain persons and entities associated with the ISIL (Da'esh) and Al-Qaida organisations (OJ L 139, 29.5.2002, p. 9). 44 Council Regulation (EU) No 356/2010 of 26 April 2010 imposing certain specific restrictive measures directed against certain natural or legal persons, entities or bodies, in view of the situation in Somalia (OJ L 105, 27.4.2010, p. 1).
Amendment 103 #
Proposal for a regulation
Recital 20
Recital 20
(20) In order to reflect the special characteristics of national payment and the specificities of crypto-asset transfer systems, and provided that it is always possible to trace the transfer of funds back to the payer or, through the immutability and traceability inherent to blockchain technology, the transfer of crypto-assets back to the beneficiary , Member States should be able to exempt from the scope of this Regulation certain domestic low-value transfers of funds, including electronic giro payments, or low-value transfers of crypto- assets, used for the purchase of goods or services.
Amendment 107 #
Proposal for a regulation
Recital 22
Recital 22
(22) In order not to impair the efficiency of payment systems and crypto-asset transfer services , and in order to balance the risk of driving transactions underground as a result of overly strict identification requirements against the potential terrorist threat posed by small transfers of funds or crypto-assets , the obligation to check whether information on the payer or the payee , or, for transfers of crypto-assets, the originator and the beneficiary, is accurate should, in the case of transfers of funds where verification has not yet taken place, be imposed only in respect of individual transfers of funds or crypto-assets that exceed EUR 1000, unless the transfer appears to be linked to other transfers of funds or transfers of crypto-assets which together would exceed EUR 1000, the funds or crypto-assets have been received or paid out in cash or in anonymous electronic money, or where there are reasonable grounds for suspecting money laundering or terrorist financing. This exemption for transfers not exceeding EUR 1000, calculated as incremental value over a set period of time and based on the moment the transfer is ordered, applicable for transfers of funds and transfers of crypto- assets, in line with FATF standards, should guarantee a systematic coherence of the Union framework on payment services.
Amendment 114 #
Proposal for a regulation
Recital 22 a (new)
Recital 22 a (new)
(22a) Technological solutions that offer a sufficient level of protection against money laundering and terrorist financing should be considered as an equivalent alternative to conventional Know-Your- Customer (KYC) obligations. Thus, crypto-asset service providers that offer such technological solutions in the sense of blockchain analytical tools should be exempted from KYC obligations. The decision whether a technological solution offers a sufficient level of protection against money laundering should be taken by the competent authorities.
Amendment 115 #
Proposal for a regulation
Recital 23
Recital 23
(23) For transfers of funds or for transfers of crypto-assets where verification is deemed to have taken place, payment service providers and crypto-asset service providers should not be required to verify information on the payer or the payee accompanying each transfer of funds, or on the originator and the beneficiary accompanying each transfer of crypto-assets, provided that the obligations laid down in [please insert reference – proposal for a directive on the mechanisms to be put in place by the Member States for the prevention of the use of the financial system for the purposes of money laundering or terrorist financing and repealing Directive (EU) 2015/849] and Regulation [please insert reference – proposal for a regulation on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing and repealing Directive (EU) 2015/849] are metDirective (EU) 2015/849 are met. Considering the risk of having outdated legislation in the field of anti- money laundering and counter the financing of terrorism, it is essential to guarantee that this Regulation is systematically coherent with the future legislative framework.
Amendment 121 #
Proposal for a regulation
Recital 28
Recital 28
(28) Due to the cross-border nature and the risks associated withof crypto-asset activities and crypto-asset service providers operations, all transfers of crypto-assets should be treated as cross- border wire transfers, with no simplified domestic wire transfers regime.
Amendment 129 #
Proposal for a regulation
Recital 35
Recital 35
(35) The payment service provider of the payee, the intermediary payment service provider and the crypto-asset service provider of the beneficiary should exercise special vigilance, assessing the risks, when either becomes aware that information on the payer or the payee , or the originator or the beneficiary is missing or incomplete, and should report suspicious transactions to the competent authorities in accordance with the reporting obligations set out in Regulation (EU) [...] Directive (EU) 2015/849.
Amendment 136 #
Proposal for a regulation
Recital 40
Recital 40
(40) As it may not be possible in criminal investigations to identify the data required or the individuals involved in a transaction until many months, or even years, after the original transfer of funds or transfer of crypto-assets , and in order to be able to have access to essential evidence in the context of investigations, it is appropriate to require payment service providers or crypto-asset service providers to keep records of information on the payer and the payee or the originator and the beneficiary for a period of time for the purposes of preventing, detecting and investigating money laundering and terrorist financing. That period should be limited to five years, after which all personal data should be permanently deleted unless national law provides otherwise.
Amendment 145 #
Proposal for a regulation
Article 2 – paragraph 2
Article 2 – paragraph 2
2. This Regulation shall not apply to the services listed in points (a) to (m) and (o) of Article 3 of Directive (EU) 2015/2366.
Amendment 151 #
Proposal for a regulation
Article 2 – paragraph 3 – subparagraph 2
Article 2 – paragraph 3 – subparagraph 2
However, this Regulation shall apply when a payment card, an electronic money instrument or a mobile phone, or any other digital or IT prepaid or postpaid device with similar characteristics, is used in order to effect a person-to-person transfer of funds or crypto-assets .
Amendment 154 #
Proposal for a regulation
Article 2 – paragraph 4 – subparagraph 4
Article 2 – paragraph 4 – subparagraph 4
This Regulation shall not apply to person- to-person transfer of crypto-assets as defined in Article 3(14).
Amendment 156 #
Proposal for a regulation
Article 2 – paragraph 4 – subparagraph 4 a (new)
Article 2 – paragraph 4 – subparagraph 4 a (new)
The scope of this Regulation does not extend to crypto-assets, that are not admitted to trading on a trading platform for crypto-assets.
Amendment 160 #
Proposal for a regulation
Article 2 – paragraph 5 – point a
Article 2 – paragraph 5 – point a
(a) the payment service provider or the crypto-asset service provider of the payee or the beneficiary is subject to [please insert reference – proposal for a regulation on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing and repealing Directive (EU) 2015/849];
Amendment 172 #
Proposal for a regulation
Article 3 – paragraph 1 – point 1
Article 3 – paragraph 1 – point 1
(1) ‘terrorist financing’ means terrorist financing as defined in Article 2(21(5) of [please insert reference – proposal for a regulation on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing and repealing Directive (EU) 2015/849];
Amendment 173 #
Proposal for a regulation
Article 3 – paragraph 1 – point 2
Article 3 – paragraph 1 – point 2
(2) ‘money laundering’ means the money laundering activities referred to in Article 2(1) of [please insert reference – proposal for a regulation on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing and repealing1(3) and (4) of Directive (EU) 2015/849];
Amendment 174 #
Proposal for a regulation
Article 3 – paragraph 1 – point 10
Article 3 – paragraph 1 – point 10
(10) ‘transfer of crypto-assets’ means any transaction conducted on behalf of a natural or legal person, at least partially carried out by electronic means on behalf of an originator, through a crypto-asset service provider, with a view to making crypto- assets available to a beneficiary through a crypto-asset service provider that moves the crypto-assets from one crypto-asset address or account to another, irrespective of whether the originator and the beneficiary are the same natural or legal person and irrespective of whether the crypto-asset service provider of the originator and that of the beneficiary are one and the same.
Amendment 186 #
Proposal for a regulation
Article 4 – paragraph 5 – point a
Article 4 – paragraph 5 – point a
(a) a payer's identity has been verified in accordance with Articles 16, 37 and 18(3) of [please insert reference – proposal for a regulation on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing and repealing3 of Directive (EU) 2015/849] and the information obtained pursuant to that verification has been stored in accordance with Article 5640 of that RegulationDirective; or
Amendment 187 #
Proposal for a regulation
Article 4 – paragraph 5 – point b
Article 4 – paragraph 5 – point b
(b) Article 21(2) and (3) of [please insert reference – proposal for a regulation on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing and repealing14(5) of Directive (EU) 2015/849] applies to the payer.
Amendment 189 #
Proposal for a regulation
Article 5 – paragraph 2 – point a
Article 5 – paragraph 2 – point a
(a) for transfers of funds exceeding EUR 1000, calculated based on the moment the transfer is ordered, in line with the FATF standards, whether those transfers are carried out in a single transaction or in several transactions which appear to be linked, the information on the payer or the payee in accordance with Article 4;
Amendment 193 #
Proposal for a regulation
Article 5 – paragraph 2 – point b – introductory part
Article 5 – paragraph 2 – point b – introductory part
(b) for transfers of funds not exceeding EUR 1000, in line with the FATF standards, that do not appear to be linked to other transfers of funds which, together with the transfer in question, exceed EUR 1000, at least:
Amendment 198 #
Proposal for a regulation
Article 6 – paragraph 2 – subparagraph 1 – introductory part
Article 6 – paragraph 2 – subparagraph 1 – introductory part
By way of derogation from Article 4(1), and, where applicable, without prejudice to the information required in accordance with Regulation (EU) No 260/2012, where the payment service provider of the payee is established outside the Union, in line with FATF standards, transfers of funds not exceeding EUR 1000, calculated based on the moment the transfer is ordered, and that do not appear to be linked to other transfers of funds which, together with the transfer in question, exceed EUR 1000, shall be accompanied by at least:
Amendment 205 #
Proposal for a regulation
Article 7 – paragraph 5 – point a
Article 7 – paragraph 5 – point a
(a) a payee's identity has been verified in accordance with Articles 16, 37 and 18(3) of [please insert reference – proposal for a regulation on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing and repealing3 of Directive (EU) 2015/849] and the information obtained pursuant to that verification has been stored in accordance with Article 5640 of that RegulationDirective; or
Amendment 206 #
Proposal for a regulation
Article 7 – paragraph 5 – point b
Article 7 – paragraph 5 – point b
(b) Article 21(2) and (3) of [please insert reference – proposal for a regulation on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing and repealing14(5) of Directive (EU) 2015/849] applies to the payee.
Amendment 207 #
Proposal for a regulation
Article 8 – paragraph 1 – subparagraph 1
Article 8 – paragraph 1 – subparagraph 1
The payment service provider of the payee shall implement effective risk-based procedures, including procedures based on the risk-sensitive basis referred to in Article 16 of [please insert reference – proposal for a regulation on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing and repealing3 of Directive (EU) 2015/849], for determining whether to execute, reject or suspend a transfer of funds lacking the required complete payer and payee information and for taking the appropriate follow-up action.
Amendment 208 #
Proposal for a regulation
Article 8 – paragraph 2 – subparagraph 2
Article 8 – paragraph 2 – subparagraph 2
The payment service provider of the payee shall report that failure, and the steps taken, at the shortest possible term, to the competent authority responsible for monitoring compliance with anti-money laundering and counter terrorist financing provisions.
Amendment 209 #
Proposal for a regulation
Article 9 – paragraph 1
Article 9 – paragraph 1
The payment service provider of the payee shall take into account missing or incomplete information on the payer or the payee as a factor when assessing whether a transfer of funds, or any related transaction, is suspicious and whether it is to be reported to the Financial Intelligence Unit (FIU) in accordance with [please insert reference – proposal for a regulation on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing and repealing Directive (EU) 2015/849].
Amendment 210 #
Proposal for a regulation
Article 12 – paragraph 1 – subparagraph 2
Article 12 – paragraph 1 – subparagraph 2
Where the intermediary payment service provider becomes aware, when receiving transfers of funds, that the information referred to in Article 4(1), points (a), (b) and (c), Article 4, points (2)(a) and (b), Article 5(1) or Article 6 is missing or has not been filled in using characters or inputs admissible in accordance with the conventions of the messaging or payment and settlement system as referred to in Article 7(1) it shall immediately reject the transfer or ask for the required information on the payer and the payee, to be provided at the shortest possible term, before or after the transmission of the transfer of funds, on a risk-sensitive basis.
Amendment 211 #
Proposal for a regulation
Article 12 – paragraph 2 – subparagraph 1
Article 12 – paragraph 2 – subparagraph 1
Where a payment service provider repeatedly fails to provide the required information on the payer or the payee, the intermediary payment service provider shall take steps, which may initially include the issuing of warnings and setting of deadlines, before either rejecting any future transfers of funds from that payment service provider, or restricting or terminating its business relationship with that payment service provider, duly justifying such decision on a communication to the payment service provider.
Amendment 212 #
Proposal for a regulation
Article 12 – paragraph 2 – subparagraph 2
Article 12 – paragraph 2 – subparagraph 2
The intermediary payment service provider shall report that failure, and the steps taken, at the shortest possible term, to the competent authority responsible for monitoring compliance with anti-money laundering and counter terrorist financing provisions.
Amendment 213 #
Proposal for a regulation
Article 13 – paragraph 1
Article 13 – paragraph 1
The intermediary payment service provider shall take into account missing information on the payer or the payee as a factor when assessing whether a transfer of funds, or any related transaction, is suspicious, and whether it is to be reported to the FIU in accordance with [please insert reference – proposal for a regulation on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing and repealing Directive (EU) 2015/849].
Amendment 230 #
Proposal for a regulation
Article 14 – paragraph 3
Article 14 – paragraph 3
3. By way of derogation from paragraph 1, point (b), and paragraph 2, point (b), in the case of a transfer not made from or to an account, the crypto- asset service provider of the originator shall ensure that the transfer of crypto- assets can be individually identified, namely using innovative technological solutions, and record the originator and beneficiary address identifiers on the distributed ledger. To this end, innovative technological solutions shall be considered as an equivalent alternative for conventional KYC obligations.
Amendment 241 #
Proposal for a regulation
Article 14 – paragraph 5
Article 14 – paragraph 5
5. Before transferring crypto-assets, the crypto-asset service provider of the originator shall verify the accuracy of the information referred to in paragraph 1 on the basis of documents, data or information obtained from a reliable and independent source. To this end, the competent authorities shall establish, maintain and update a central database of crypto-asset wallet addresses labelled as suspicious or linked to criminal activity. This database shall be used as a reliable source for the use of technological solutions in the sense of blockchain analytical tools.
Amendment 244 #
Proposal for a regulation
Article 14 – paragraph 6 – point a
Article 14 – paragraph 6 – point a
(a) the identity of the originator has been verified in accordance with Article 16, 18(3) and 37 of Regulation [please insert reference – proposal for a regulation on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing and repealing3 of Directive (EU) 2015/849] [ and the information obtained pursuant to that verification has been stored in accordance with Article 5640 of Regulation [please insert reference – proposal for a regulation on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing and repealing Directive (EU) 2015/849]that Directive or
Amendment 246 #
Proposal for a regulation
Article 14 – paragraph 6 – point b
Article 14 – paragraph 6 – point b
(b) Article 21(2) and (3) of Regulation [please insert reference – proposal for a regulation on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing and repealing14(5) of Directive (EU) 2015/849] applies to the originator.
Amendment 257 #
Proposal for a regulation
Article 15 – paragraph 2 – subparagraph 1 – introductory part
Article 15 – paragraph 2 – subparagraph 1 – introductory part
By way of derogation from Article 14(1), and in line with FATF standards, transfers of crypto-assets not exceeding EUR 1 000 that do not appear to be linked to other transfers of crypto-assets which, together with the transfer in question, exceed EUR 1 000, shall be accompanied by at least the following information:
Amendment 261 #
Proposal for a regulation
Article 15 – paragraph 2 – subparagraph 1 – point b
Article 15 – paragraph 2 – subparagraph 1 – point b
(b) the account number of the originator and of the beneficiary or, where Article 14(3) applies, the insurance that the crypto-asset transaction can be individually identified, namely using innovative technological solutions;
Amendment 268 #
Proposal for a regulation
Article 16 – paragraph 2
Article 16 – paragraph 2
2. In the case of transfers of crypto- assets exceeding the de minimis exemption of EUR 1 000, whether those transfers are carried out in a single transaction or in several transactions which appear to be linked, before making the crypto-assets available to the beneficiary, the crypto- asset service provider of the beneficiary shall verify the accuracy of the information on the beneficiary referred to in paragraph 1 on the basis of documents, data or information obtained from a reliable and independent source, without prejudice to the requirements laid down in Articles 83 and 84 of Directive (EU) 2015/2366.
Amendment 275 #
Proposal for a regulation
Article 16 – paragraph 3 – introductory part
Article 16 – paragraph 3 – introductory part
3. In the case of transfers of crypto- assets not exceeding the de minimis exemption of EUR 1 000 that do not appear to be linked to other transfers of crypto-asset which, together with the transfer in question, exceed EUR 1 000, the crypto-asset service provider of the beneficiary shall only verify the accuracy of the information on the beneficiary in the following cases:
Amendment 281 #
Proposal for a regulation
Article 16 – paragraph 4 – point a
Article 16 – paragraph 4 – point a
(a) the identity of the crypto-assets transfer beneficiary has been verified in accordance with [replace with right reference in AMLR to replace Articles 16, 18(3) and 37 of Regulation [please insert reference – proposal for a regulation on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing and repealing3 of Directive (EU) 2015/849] and the information obtained pursuant to that verification has been stored in accordance with Article 56 of Regulation [please insert reference – proposal for a regulation on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing and repealing Directive (EU) 2015/849]40 of that Directive;
Amendment 283 #
Proposal for a regulation
Article 16 – paragraph 4 – point b
Article 16 – paragraph 4 – point b
(b) Article 21(2) and (3) of Regulation [please insert reference – proposal for a regulation on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing and repealing14(5) of Directive (EU) 2015/849] applies to the crypto-assets transfer beneficiary.
Amendment 289 #
Proposal for a regulation
Article 17 – paragraph 1 – subparagraph 1
Article 17 – paragraph 1 – subparagraph 1
The crypto-asset service provider of the beneficiary shall implement effective risk- based procedures, including procedures based on the risk-sensitive basis referred to in Articles 16, 18(3) and 37 of Regulation [please insert reference – proposal for a regulation on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing and repealing3 of Directive (EU) 2015/849], for determining whether to execute or reject a transfer of crypto-assets lacking the required complete originator and beneficiary information and for taking the appropriate follow-up action.
Amendment 290 #
Proposal for a regulation
Article 17 – paragraph 1 – subparagraph 2
Article 17 – paragraph 1 – subparagraph 2
Where the crypto-asset service provider of the beneficiary becomes aware, when receiving transfers of crypto-assets without the use of innovative technology solutions as referred to in article 14(3), that the information referred to in Article 14(1) or (2) or Article 15 is missing or incomplete, the crypto-asset service provider shall immediately reject the transfer or ask for the required information on the originator and the beneficiary, at the shortest possible term, before or after making the crypto- assets available to the beneficiary, on a risk-sensitive basis.
Amendment 293 #
Proposal for a regulation
Article 17 – paragraph 2 – subparagraph 1
Article 17 – paragraph 2 – subparagraph 1
Where a crypto-asset service provider repeatedly fails to provide the required information on the originator or the beneficiary, the crypto-asset service provider of the beneficiary shall take steps, which may initially include the issuing of warnings and setting of deadlines, and return the transferred crypto-assets to the originator’s account or address. Alternatively, the crypto-asset service provider of the beneficiary may hold the transferred crypto-assets without making them available to the beneficiary, pending review by the competent authority responsible for monitoring compliance with anti-money laundering and counter terrorist financing provisions, that must decide on the shortest possible term.
Amendment 298 #
Proposal for a regulation
Article 18 – paragraph 1
Article 18 – paragraph 1
The crypto-asset service provider of the beneficiary shall take into account missing or incomplete information on the originator or the beneficiary when assessing whether a transfer of crypto-assets, or any related transaction, is suspicious and whether it is to be reported to the FIU in accordance with Regulation [please insert reference – proposal for a regulation on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing and repealing Directive (EU) 2015/849].
Amendment 309 #
Proposal for a regulation
Article 19 – paragraph 1
Article 19 – paragraph 1
Payment service providers and crypto-asset service providers shall respond fully and without delay, including by means of a central contact point in accordance with Article 45(19) of [please insert reference – proposal for a directive on the mechanisms to be put in place by the Member States for the prevention of the use of the financial system for the purposes of money laundering or terrorist financing and repealing Directive (EU) 2015/849], where such a contact point has been appointed, and in accordance with the procedural requirements laid down in the national law of the Member State in which they are established, to enquiries exclusively from the authorities responsible for preventing and combating money laundering or terrorist financing of that Member State concerning the information required under this Regulation.
Amendment 310 #
Proposal for a regulation
Article 20 – paragraph 3
Article 20 – paragraph 3
3. Payment service providers and crypto-asset service providers shall provide new clients with the information required pursuant to Article 13 of Regulation (EU) 2016/679 before establishing a business relationship or carrying out an occasional transaction. That information shall be accessible, clear and transparent, in particular, includeing a general notice concerning the legal obligations of payment service providers and crypto-asset service providers under this Regulation when processing personal data for the purposes of the prevention of money laundering and terrorist financing.
Amendment 312 #
Proposal for a regulation
Article 21 – paragraph 2
Article 21 – paragraph 2
2. Upon expiry of the retention period referred to in paragraph 1, payment service providers and crypto-asset service providers shall ensure that the personal data is permanently deleted.
Amendment 314 #
Proposal for a regulation
Article 22 – paragraph 1 – subparagraph 1
Article 22 – paragraph 1 – subparagraph 1
Without prejudice to the right to provide for and impose criminal sanctions, Member States shall lay down the rules on administrative sanctions and measures applicable to breaches of the provisions of this Regulation and shall take all measures necessary to ensure that they are implemented. The sanctions and measures provided for shall be effective, proportionate and dissuasive and shall be consistent with those laid down in accordance with Chapter IVI, Section 4, of [please insert reference – proposal for a directive on the mechanisms to be put in place by the Member States for the prevention of the use of the financial system for the purposes of money laundering or terrorist financing and repealing Directive (EU) 2015/849].
Amendment 315 #
Proposal for a regulation
Article 22 – paragraph 4
Article 22 – paragraph 4
4. In accordance with Article 39 of [please insert reference – proposal for a directive on the mechanisms to be put in place by the Member States for the prevention of the use of the financial system for the purposes of money laundering or terrorist financing and repealing58(4) of Directive (EU) 2015/849], competent authorities shall have all the supervisory and investigatory powers that are necessary for the exercise of their functions. In the exercise of their powers to impose administrative sanctions and measures, competent authorities shall cooperate closely to ensure that those administrative sanctions or measures produce the desired results and coordinate their action when dealing with cross-border cases.
Amendment 317 #
Proposal for a regulation
Article 23 – paragraph 1 – introductory part
Article 23 – paragraph 1 – introductory part
Member States shall ensure that their administrative sanctions and measures include at least those laid down by Articles 40(2), 40(3 59(2) and 41(1(3) of [please insert reference – proposal for a directive on the mechanisms to be put in place by the Member States for the prevention of the use of the financial system for the purposes of money laundering or terrorist financing and repealing Directive (EU) 2015/849] in the event of the following breaches of this Regulation:
Amendment 320 #
Proposal for a regulation
Article 24 – paragraph 1
Article 24 – paragraph 1
In accordance with Article 42 of [please insert reference – proposal for a directive on the mechanisms to be put in place by the Member States for the prevention of the use of the financial system for the purposes of money laundering or terrorist financing and repealing60(1), (2) and (3) of Directive (EU) 2015/849], the competent authorities shall publish administrative sanctions and measures imposed in the cases referred to in Articles 22 and 23 of this Regulation without undue delay, including information on the type and nature of the breach and the identity of the persons responsible for it, if necessary and proportionate after a case-by-case evaluation.
Amendment 321 #
Proposal for a regulation
Article 25 – paragraph 1
Article 25 – paragraph 1
1. When determining the type of administrative sanctions or measures and the level of administrative pecuniary sanctions, the competent authorities shall take into account all relevant circumstances, including those listed in Article 39(560(4) of […]Directive (EU) 2015/849.
Amendment 322 #
Proposal for a regulation
Article 25 – paragraph 2
Article 25 – paragraph 2
2. As regards administrative sanctions and measures imposed in accordance with this Regulation, Articles 6(6) and 44 [...] of [...]Directive (EU) [please insert reference – proposal for a directive on the mechanisms to be put in place by the Member States for the prevention of the use of the financial system for the purposes of money laundering or terrorist financing and repealing2 of Directive (EU) 2015/849] shall apply.
Amendment 323 #
Proposal for a regulation
Article 26 – paragraph 1 – subparagraph 1
Article 26 – paragraph 1 – subparagraph 1
Member States shall establish effective and proportionate mechanisms to encourage the reporting to competent authorities of breaches of this Regulation.
Amendment 324 #
Proposal for a regulation
Article 26 – paragraph 1 – subparagraph 2
Article 26 – paragraph 1 – subparagraph 2
Those mechanisms shall include at least those referred to in Article 43 of [please insert reference – proposal for a directive on the mechanisms to be put in place by the Member States for the prevention of the use of the financial system for the purposes of money laundering or terrorist financing and repealing61(2) of Directive (EU) 2015/849].
Amendment 325 #
Proposal for a regulation
Article 27 – paragraph 1
Article 27 – paragraph 1
1. Member States shall require competent authorities to monitor effectively and to take the measures necessary to ensure compliance with this Regulation and encourage, through effective and proportionate mechanisms, the reporting of breaches of the provisions of this Regulation to competent authorities.
Amendment 327 #
Proposal for a regulation
Article 29 – paragraph 3
Article 29 – paragraph 3
3. Upon receipt by the Commission of such a request, transfers of funds between that Member State and the country or territory concerned shall be provisionally treated as transfers of funds within that Member State until a decision is reached in accordance with this Article. Such decision shall be made without undue delay.
Amendment 328 #
Proposal for a regulation
Article 29 – paragraph 6 – subparagraph 1
Article 29 – paragraph 6 – subparagraph 1
Within three months of the notification referred to in paragraph 5 of this Article, the Commission shall decide, without undue delay, whether to authorise the Member State concerned to conclude the agreement that is the subject of the request. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 28(2).
Amendment 332 #
Proposal for a regulation
Article 30 a (new)
Article 30 a (new)
Article 30 a Review Clause By … [please insert date - three years after the date of entry in force of this Regulation], the Commission shall submit to the European Parliament and to the Council a report on the application and enforcement of this Regulation accompanied, if appropriate, by a legislative proposal. That report shall include the following elements: (a) an assessment of the effectiveness of existing measures and technical solutions for their application and compliance obligations on payment service providers and crypto-asset service providers, as well as the data protection and privacy implications of the Regulation; (b) an assessment of the effectiveness of international cooperation and exchange of information between competent authorities and FIUs; (c) an assessment of the latest technological developments in blockchain analytics and know-your-transaction assessment; (d) an assessment on the latest developments in crypto-asset industry-led standard settings initiatives that mirror existing messaging and reporting data standards in other sectors; (e) an assessment on the information provided by the market operators, namely banks, payment service providers, crypto- assets service providers, etc; (f) an assessment on the most relevant and topical recommendations of international organisations and standard setters in the field of preventing money laundering and combating terrorist financing; (g) an assessment on the systematic coherence of this Regulation with the European legislation on Anti-Money Laundering and Countering Terrorist Financing (AML/CFT).
Amendment 341 #
Proposal for a regulation
Article 32 – paragraph 1 a (new)
Article 32 – paragraph 1 a (new)
It shall apply from [please insert reference to the date of application of proposal for a Regulation on Markets in Crypto-Assets (MiCAR)]