After having published, back in December 2014, an Opinion to national competent authorities and Advice to the EU institutions on digital investing, the European Securities and Markets Authority (ESMA) identified the need of clarifying the extent of the risks involved in investment-based crowdfunding relating to the potential for money laundering and for terrorist financing.
The purpose of the document is to promote common supervisory approaches and practices in the application of anti-money laundering rules to investment-based crowdfunding. It 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.
The document is therefore aimed at national competent authorities to support them in ensuring that their supervisory approach is effective, taking into account the characteristics of and risks associated with different aspects of digital investing. With this publication, ESMA gives further input to European Countries on how to regulate the emerging market of digital investing with a common approach, which is the basis to create a possible European crowdfunding market.
You can read the full Q&A by ESMA below.
About the author - Irene Tordera
Born and raised in Milan, Italy, Irene is an International Business graduate, with a strong interest for innovative ideas that can simplify our lives.
During her studies, she co-founded an online community for sportspeople and worked in marketing positions at Ogilvy & Mather Advertising and at the European Business Angel Network, in Brussels. She is a passionate blogger about crowdfunding and the startup ecosystem.