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The Council of Ministers, the executive body of the Irish government, has approved a bill that would implement the Fifth Anti-Money Laundering Directive (LMA) of the European Union (EU), as reported by the Irish Times January 3rd.
The directive, which entered into force on 9 July 2018, establishes a new legal framework for European financial control bodies to regulate digital currencies in order to protect themselves against money laundering and terrorist financing.
Specifically, the directive will extend the scope to cryptographic platforms and portfolio providers, eliminate the anonymity of bank and savings accounts and improve the exchange of information between authorities. Member States of the EU must incorporate the directive into their national legislation by 20 January 2020.
In addition to recognizing the EU directive, the law on criminal justice (funding) and the financing of terrorism (amendment) of 2019 would strengthen existing legislation, including the use of "virtual currencies for terrorist financing and the limitation of 39; use of prepaid cards. " Justice Minister Charlie Flanagan said:
"The reality is that money laundering is a crime that helps criminals and terrorists to work, destroying human lives in the process … Criminals try to exploit open EU borders and EU-wide measures are vital for this reason: Ireland strongly supports the provisions of the 5th EU Money Laundering Directive. ''
If the bill passes, the financial institutions will be required to perform a more rigorous due diligence against new customers and it would be forbidden to open anonymous security boxes. In addition, the bill will allow Garda and the office assets to access bank details during the money laundering investigations.
Last month, the Observatory and the Blockchain Forum of the European Union made a case for the digital versions of national currencies on a blockchain, stating:
"Putting digital versions of national blockchain currencies means that they could become integral parts of smart contracts, which would unlock much of the potential blockchain innovation by allowing parties to create automated agreements, including direct transactions in these currencies, instead of having to use a cryptocurrency as a proxy. "
Also in December, the fintech startup of Crypto-friendly, Revolut, obtained a European banking license through the Bank of Lithuania. Revolut users in the UK, France, Germany and Poland are expected to get a "real bank account and a non-prepaid debit card". In addition, user deposits will be covered up to € 100,000 (approximately $ 113,500) under the European Deposit Insurance Scheme.
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