EU Plans Comprehensive Asset Register from 2025: Massive Intrusions into Citizens’ Privacy
The European Union is planning to introduce an asset register that could start in 2025. This register is officially meant to combat money laundering and terrorist financing. However, critics say it could lead to massive intrusions into citizens’ privacy, making everyone more transparent to the authorities.
A Comprehensive Control and Monitoring System
Since 2021, the EU has been working on plans to centrally record assets and their owners. Now, it seems these plans are closer to becoming real. Under the pretext of fighting money laundering and terrorist financing, a control and monitoring system is being set up that is unparalleled. This system will make all financial transactions and assets of citizens accessible to authorities.
The register will record all assets over 200,000 euros. These include real estate, bank accounts, securities, foreign assets, crypto assets, vehicles, and possibly also works of art or precious metals. Critics fear that the limit of 200,000 euros could be lowered to include even more citizens and their private financial information.
Access for Authorities and “Persons with Legitimate Interests”
Not only will authorities have access to the asset register, but also “persons with legitimate interests.” This includes journalists, reporters, other media, civil society organizations, and higher education institutions. Critics believe this is a significant invasion of citizens’ privacy and could lead to misuse and data leaks.
Further Monitoring Measures
In addition to capping cash transactions at 10,000 euros and the asset register, the EU has adopted more measures to combat money laundering and terrorist financing. One of these is the creation of a new Anti-Money Laundering Authority (AMLA). The AMLA will be based in Frankfurt am Main and is scheduled to start work in mid-2025. This authority will have far-reaching powers and will directly monitor up to 40 financial institutions.
Introduction of a Central Reporting System
To prevent money laundering and terrorist financing, each EU member state should set up a financial intelligence unit (FIU). These units will exchange information with each other and with the competent authorities, and cooperate with Europol, Eurojust, and the European Public Prosecutor’s Office. The AMLA will be responsible for supervising and coordinating the FIUs.
Danger of Wealth Redistribution and Expropriation
The asset register will allow for detailed recording and valuation of assets, which could be used for wealth redistribution and tax increases, such as a wealth tax. It could also play a role in the Equalization of Burdens Act, which aims to ensure fair distribution of financial burdens after major economic crises. Critics argue that the register massively interferes with citizens’ privacy.
Concerns Over Digital Central Bank Currencies and Surveillance
Anyone who previously thought that worries about the abolition of cash and the surveillance and control of people through programmable digital central bank currencies were just conspiracy theories might be proven wrong by the wealth register idea. Politics often proceeds in small steps: eventually, everyone could be affected, not just criminals or the wealthy, whose assets some might want to redistribute.
EU Commission Tries to Limit the Damage
Facing massive criticism, the EU Commission is trying to limit the damage. According to a statement by spokesman Eric Mamer, the Commission currently has “no intention of setting up a central database on the assets of EU citizens.” However, such assurances should be taken with a grain of salt. Remember the famous words: “Nobody has any intention of building a wall.”
Citizens Should Remain Vigilant
Citizens should remain vigilant and critically examine the EU’s plans. This is about protecting privacy and the freedom of the individual. With the introduction of the asset register, citizens’ financial data could be easily accessed by authorities and other parties with “legitimate interests.” This could lead to a significant invasion of privacy and potential misuse of data.
Potential Implications of the Asset Register
The introduction of the asset register has several potential implications. First, it could make citizens more transparent to the authorities. This means that all financial transactions and assets over 200,000 euros will be accessible to the authorities. This could include real estate, bank accounts, securities, foreign assets, crypto assets, vehicles, works of art, and precious metals.
Second, the register could be used for wealth redistribution and tax increases, such as a wealth tax. This means that the detailed recording and valuation of assets could lead to higher taxes for citizens. It could also be relevant for the Equalization of Burdens Act, which aims to ensure fair distribution of financial burdens after major economic crises.
Third, the register could lead to further monitoring measures. In addition to capping cash transactions at 10,000 euros, the EU has adopted more measures to combat money laundering and terrorist financing. This includes the creation of the Anti-Money Laundering Authority (AMLA) and financial intelligence units (FIUs) in each member state. The AMLA will have far-reaching powers and will directly monitor up to 40 financial institutions.
Privacy Risks and Data Security Concerns
One of the biggest concerns about the asset register is the potential invasion of citizens’ privacy. Critics argue that making financial transactions and assets accessible to authorities and other parties with “legitimate interests” could lead to misuse and data leaks. This could result in significant invasions of privacy and potential harm to citizens.
Another concern is data security. With the asset register containing sensitive financial information, there is a risk of data breaches and cyber attacks. This could lead to the exposure of citizens’ financial data, causing harm and financial loss.
Impact on Financial Institutions and Markets
The introduction of the asset register could also have an impact on financial institutions and markets. Financial institutions will be subject to more scrutiny and monitoring, which could lead to increased compliance costs. This could also affect their operations and profitability.
In addition, the asset register could impact financial markets. The detailed recording and valuation of assets could lead to changes in asset prices and market behavior. This could affect investors and market participants.
Criticism and Opposition to the Asset Register
There has been significant criticism and opposition to the asset register. Critics argue that it is an invasion of privacy and could lead to misuse of data. They also argue that the register could be used for wealth redistribution and tax increases, which could harm citizens financially.
Opponents of the asset register also argue that it is unnecessary and could be replaced with other measures to combat money laundering and terrorist financing. They believe that the existing measures, such as the Anti-Money Laundering Authority (AMLA) and financial intelligence units (FIUs), are sufficient to address these issues.
Conclusion
The EU’s plan to introduce a comprehensive asset register from 2025 has sparked significant debate and concern. While it is officially intended to combat money laundering and terrorist financing, critics argue that it could lead to massive intrusions into citizens’ privacy and be used for wealth redistribution and tax increases. Citizens should remain vigilant and critically examine the EU’s plans to protect their privacy and freedom. The potential implications of the asset register, including privacy risks, data security concerns, and impacts on financial institutions and markets, need to be carefully considered.
