25 August 2023

Philea urges exclusion of public-benefit crowdfunding platforms & service providers as obliged entities under upcoming AML/CFT legislation

Philea joins a coalition of organisations in support of the exclusion of public-benefit crowdfunding platforms and service providers from the category of obliged entities under the EU Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) Regulation.

With the regulation currently under negotiation among the EU institutions[1], the EU AML Non-Profit Organisation (NPO) coalition’s submitted position argues – based on available official reports and other evidence – that the risk of abuse is low for public-benefit purpose crowdfunding platforms and crowdfunding service providers established by non-profit legal entities.

The coalition sets out four key arguments for the proposed exclusions:

  • the evidence of the (low) risk of misuse for terrorism-financing;
  • the lack of a definition of crowdfunding service and crowdfunding service provider(s) in the Commission proposal;
  • the need to consider already existing regulation in the field and take fundamental rights into account; and
  • the negative effect on fundraising, giving and philanthropy, should public benefit crowdfunding service providers be considered obliged entities.

The paper is co-signed by the EU AML NPO Coalition, which comprises Philea, Civil Society Europe, the European Center for Not-for-Profit Law, Human Security Collective, and the European Fundraising Association.

The full position paper is available here.

[1] The final legislation to be adopted in the coming months and to enter into force in 2027.