Anti-money laundering, EU launches crackdown on soccer teams and agents

Brussels – It’s official: the world of soccer is at the centre of the European Union’s new anti-money laundering rules. The EU Council has given final approval to rules that will trigger checks and verification requirements for clubs, agents, and sponsors starting in 2029. Recognising that “the soccer sector presents a high
risk,” European lawmakers decided to regulate a market where turnover and
money flows demanded a completely different approach.

Modern soccer is increasingly business-oriented. Revenues, capital gains, multimillion-dollar contracts: soccer moves large amounts of money between football-market transactions, matches and wins prizes, and sponsors contributions. Between Serie A and European Cups, the activities of professional soccer clubs competing in the highest divisions of their respective national soccer leagues, reads the preamble of the regulation on the prevention of money laundering text, “make them more exposed to higher risks of money laundering and its predicate offences than football clubs participating in lower divisions.” Hence, the decision to take action. 

Starting in 2029, even top professional soccer clubs involved in high-value financial transactions with investors or sponsors, including agents and brokers, advertisers and the transfer of players, will have to verify the identity of their clients, monitor transactions, and report any suspicious transactions to the relevant Financial Intelligence Units.

All this is without prejudice to the possibility for member states to grant partial or total exemptions for clubs of the top division and who make total annual sales of less than five million euros (or the equivalent in national currency) for each of the last two calendar years. Similarly, national authorities may exclude sports betting services “based on the proven low risk posed by the nature and, where appropriate, the scale of operations of such a service” from the relevant controls and audits.

The clampdown comes as part of the legislative package aimed at combating the financing of terrorism and illicit activities. The Council of the EU, also by a final vote, approves rules imposing strengthened supervision provisions for the ultra-rich (total assets of at least 50 million euros, not including principal residence), an EU-wide limit of 10,000 euros for cash payments, and the establishment of the new European Anti-Money Laundering and Terrorist Financing Authority (AMLA), based in Frankfurt and which will become operational from mid-2025. These measures, in contrast to those for the world of soccer, will come into effect immediately, that is, 20 days after publication in the official gazette.