EU Banks forced to report bitcoin-linked accounts transacting over €1,000

Regulation | June 29, 2015 By:

An anonymous Dutch bank employee has reported that major banks in the EU are applying new rules forcing banks to report or investigate accounts receiving or sending over €1,000 connected to bitcoin.

The anonymous user identifies himself as a bank employee within the Dutch banking system. Referencing a memo seen in the bank offices, the user describes how accounts receiving more than €1,000 from known bitcoin-linked accounts should be subject to increased scrutiny, and reported.

Additionally, the bank employee writes that the bank also must “flag accounts who have received more than €10,500 per year (outside of salary), and inform the authorities if bank employees suspect these funds to originate from Bitcoin exchanges.”

The new approach appears to stem from a recent EU directive aimed at “the prevention of the use of the financial system for the purpose of money laundering and terrorist financing.” In this strengthened ruling, and its accompanying documents, the EU Commission lays out a lower €1,000 threshold above which activity is monitored under an anti-money laundering (AML) process.