The European asset register - another step towards a transparent citizen?
The aim of the regulations is to combat and prevent money laundering and terrorist financing. However, it also has the potential to restrict the fundamental freedoms of every citizen - in particular through extensive monitoring and sanction measures that go far beyond the area of terrorist financing mentioned above.
As part of the fight against money laundering and terrorist financing, the EU is relying on the establishment of a wide range of registers, e.g. beneficial ownership registers, account and safe deposit box registers, as well as centralized access to national real estate registers.
The AML package[2] contains numerous provisions on central registers with information on beneficial owners, which must be kept in detail by each member state. It is also intended to ensure that the Financial Intelligence Unit (FIU) and other competent authorities have direct and undistorted access to this information.
At the same time, "national supervisors" - administrators of the register - are given far-reaching powers of control to check the correctness of the levies submitted in the register. This includes, among other things, on-site inspections. In the event of ANY suspicion of non-compliance, they also have the power to take appropriate supervisory measures.
The directive also provides for a central register that serves to identify natural and legal persons and also records their bank accounts, securities accounts, accounts for crypto assets and safe-deposit boxes. Here, too, the member states must ensure that the FIU and the AMLA have access. The same applies to the identification of real estate property and its owners, including the relevant information for identifying and analyzing real estate transactions. Access to this data is provided in each Member State, which in turn allows the competent authorities electronic access to digitally available information.
In this context, it should be mentioned that inspection rights in the respective registers are granted not only to courts, authorities and tax offices, but also to specific journalists.
This results in a comprehensive authority structure with far-reaching access to information and harsh sanctions (e.g. account blocking etc.), as well as the resulting encroachments on fundamental freedoms.
Another part of the regulatory framework is the EU Regulation on the prevention of the use of the financial system for the purpose of money laundering or terrorist financing[3]This will be directly applicable in the Member States and will apply from July 10, 2027.
The ordinance provides for a tightening of the duty of care towards customers and an expansion of the group of obligated parties.
In addition, there will be reporting obligations for obliged entities that trade in high-value goods. This reporting obligation exists, for example, if a private individual purchases a motor vehicle at a price of more than 250,000 euros. This transaction must therefore be reported automatically. The report to the central reporting office covers all transactions in the context of the sale of selected high-value goods, which are thus permanently stored and filed.
The regulation also contains an actual cash ban. According to this, a person who trades in goods or provides services may only accept or make cash payments up to a maximum of EUR 10,000.
Conclusion:
However, it should be noted that the AML package does not contain any information on a central European asset register. Although a wide range of regulatory content in national registers and access to them already creates far-reaching transparency for individuals, it remains to be seen whether there will be a supranational asset register. The feasibility studies for such a European asset register with regard to combating money laundering and tax evasion have already been completed, meaning that the introduction of an additional European asset register could be possible as early as next year. Concrete plans in this regard could emerge in the coming months.
It remains to be seen whether a European asset register will not also be used for other purposes in addition to combating money laundering and tax evasion - such as redistributing assets and increasing monetary levies.
Sources:
[1] Directive (EU) 2024/1640 of the European Parliament and of the Council of 31 May 2024 on mechanisms to be put in place by Member States to prevent the use of the financial system for the purposes of money laundering or terrorist financing, amending Directive (EU) 2019/1937 and amending and repealing Directive (EU) 2015/849 - https://eur-lex.europa.eu/legal-content/de/TXT/?uri=CELEX%3A32024L1640
Regulation (EU) 2024/1624 of the European Parliament and of the Council of 31.05.2024 on the prevention of the use of the financial system for the purpose of money laundering or terrorist financing -
Regulation (EU) 2024/1620 of the European Parliament and of the Council of 31.05.2024 establishing the Anti-Money Laundering and Terrorist Financing Authority and amending Regulations (EU) No 1093/2010, (EU) No 1094/2010 and (EU) No 1095/2010
[2] Directive (EU) 2024/1640 of the European Parliament and of the Council of 31 May 2024 on mechanisms to be put in place by Member States to prevent the use of the financial system for the purposes of money laundering or terrorist financing, amending Directive (EU) 2019/1937 and amending and repealing Directive (EU) 2015/849 - https://eur-lex.europa.eu/legal-content/de/TXT/?uri=CELEX%3A32024L1640
[3] Regulation (EU) 2024/1624 of the European Parliament and of the Council of 31.05.2024 on the prevention of the use of the financial system for the purpose of money laundering or terrorist financing - https://eur-lex.europa.eu/legal-content/DE/TXT/?uri=OJ%3AL_202401624