EU considers establishing a centralized ‘Asset Register’ for all Union citizens

The European Union is considering the establishment of a centralized ‘Asset Register‘ to track the assets of citizens across the bloc. To this end, the EU has announced a tender for a ‘Feasibility Study for a European Asset Register’ which is reportedly aimed at combating money laundering and tax evasion in the region.

The feasibility study will explore ways to collect and link data from various sources, including land registries, company registers, trust and foundation registers, and central depositories of ownership of securities. By integrating these sources, the EU aims to create a robust system for tracking asset ownership in its member states. Specifically, the proposed register would cover assets such as real estate, bank accounts, securities, vehicles, artworks, precious metals, and cryptocurrencies.

The final list of assets will be determined based on the results of the feasibility study and subsequent legislative decisions. The EU noted that the results of the register are likely to influence political initiatives.

Data collection and interlinking of registers are key instruments under EU law to expedite access for competent authorities to financial information and facilitate cross-border cooperation. This project will consider various options for collecting information to establish the asset register, which could later be included in future political initiatives – highlighted the Union.

Privacy concerns

If the Union’s plan is realized, it could raise serious privacy issues. However, the EU emphasized that the proposed asset register would not introduce new privacy concerns. Instead, it would provide competent authorities in all member states access to existing data. Despite potential privacy issues, the results of the feasibility study and legislative processes will determine the specifics of implementation. Notably, this is not the first time the bloc has been involved in monitoring citizens’ interactions with various assets. For example, in 2021, the European Commission announced that it would require cryptocurrency exchanges to collect details about individuals sending and receiving cryptocurrencies, aligning those exchanges with the ‘Know Your Customer’ (KYC) rules already imposed on other financial institutions.

It is worth noting that in response to the Russian invasion of Ukraine, the EU, Canada, and the United States formed a transatlantic task force to enforce financial sanctions. As part of these efforts, the EU proposed a mutually linked asset register that would serve all its member states.