ESMA publishes Q&A on Money Laundry & Terrorism Financing Risks in Investment Based Crowdfunding



In December 2014 ESMA published an Opinion to national competent authorities and Advice to the EU institutions, setting out the results of its analysis of the business models of investment-based crowdfunding platforms, their regulatory treatment under the current EU rules and the issues for consideration by policymakers.

In the course of that work, ESMA identified a need to clarify the extent of the risks involved in investment-based crowdfunding relating to the potential for money laundering and for terrorist financing. In order to do so it has sought expert input from the Joint Committee’s sub-committee on Anti-Money Laundering.

This resulted in a Q&A which ESMA has made public at the beginning of July, whose purpose is to promote common supervisory approaches and practices in the application of anti-money laundering rules to investment-based crowdfunding.

The document, which you can download here,  provides responses to questions posed by national competent authorities in the course of ESMA’s work on investment-based crowdfunding, drawing on expert input from the Joint Committee sub-committee on Anti-Money Laundering.

ECN welcomes the fact that ESMA made public such document, providing in this way important guidelines to national policymakers that ulimately will contribute to grow a sustainable and transparent crowdfunding market.



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