Prevention of money laundering and terrorist financing

This procedure aims to strengthen the rules preventing criminals and terrorists from using the financial system to hide illegal funds. By improving oversight and reporting standards, the EU seeks to close loopholes that allow money laundering and the financing of terrorism to persist across borders.

This will affect banks, credit institutions, and financial service providers, who must implement stricter checks on customers and transactions. It also impacts companies and legal entities required to provide more transparent ownership information.