The EU's War on Cash and Freedom: Why America is the Last Bastion for Entrepreneurs
In Europe, a quiet but momentous transformation is underway. Under the noble banner of fighting money laundering, the European Union is meticulously constructing a surveillance apparatus that rivals China's in its scope and ambition. Meanwhile, across the Atlantic, the United States continues to foster an environment of pragmatism, trust, and entrepreneurial spirit.
For business owners, the contrast is stark and growing more pronounced by the day. The EU is building a cage, while the US is still paving a runway.
Two Worlds, One Stark Contrast
I am often asked by clients, "Why has it become so impossibly complicated to open a bank account, register a company, or simply make an investment in Europe?"
The answer is painfully simple: The EU is suffocating under the weight of its own anti-money laundering (AML) paranoia. For years, a relentless stream of new AML Directives has been passed, each one tightening the screws. Officially, the goal is to fight crime. In reality, these directives have become instruments of surveillance, prying ever deeper into the private and financial lives of ordinary citizens.
When you compare this environment to the United States—a country often mischaracterised as the "Wild West of capitalism"—you find a system with clearer, leaner, and fundamentally freer rules. The difference in philosophy is profound: The EU treats its entrepreneurs like potential criminals, while the US treats them like customers.
From Directives to a Surveillance Machine
Since 1991, one EU AML Directive has followed another, each expanding the scope of state power. The message has been consistent: more surveillance, less privacy.
4th AMLD (2015): This introduced the mandatory Beneficial Owner (UBO) register, forcing companies to declare who ultimately owns and controls them.
5th AMLD (2018): This made the UBO registers public, exposing private ownership details to anyone, including journalists and NGOs, regardless of their intent.
6th AMLD (2021): This further expanded the list of criminal offences related to money laundering.
The next logical step in this progression is already here: AMLA, a new EU "super-authority" based in Frankfurt, designed to oversee and control national financial authorities. This creates a permanent regime of general suspicion, where every financial transaction is implicitly treated as questionable.
The Emerging Digital Panopticon
Many Europeans underestimate the gravity of what is happening. Step by step, the continent is being remodelled into a surveillance state. Consider the arsenal of tools being deployed:
DAC8: This directive grants tax authorities unprecedented access to all crypto transactions. Every wallet, every exchange, every token transfer is to be reported.
MiCA (Markets in Crypto-Assets Regulation): Imposes draconian licensing requirements on crypto service providers, making decentralised finance (DeFi) practically impossible to operate legally.
The Digital Euro: This represents the gradual abolition of cash. With a central bank digital currency (CBDC), every single payment you make becomes traceable, recorded, and subject to state scrutiny.
ChatControl: Proposed legislation that would enable the systematic scanning of private messages on your phone.
All these measures are sold to the public as necessary to "fight terrorism" or "prevent crime." In truth, they are about one thing: total control.
The Real Goal: It's Always About Taxes
Let's be clear about the hypocrisy at play. The EU's primary concern isn't catching criminals; it's catching taxpayers.
The most telling evidence comes from the French economist Gabriel Zucman—mocked by many as the high priest of the tax state. When the EU and OECD were discussing a potential wealth tax on the super-rich, Zucman seriously proposed using the data from the AML registers (the UBO database) to track down assets for taxation.
This admission reveals the true purpose of the AML infrastructure: it is the foundation for a future system of total wealth surveillance and taxation. And if you think this will only affect "the rich," you haven't been paying attention. Historically, tax burdens and surveillance measures that start at the top always find their way down to the middle class.
A Tale of Two Systems: The Entrepreneur's Reality
The theoretical differences become painfully real in practice.
Europe: A Kafkaesque Nightmare A client recently tried to open a simple business bank account in Germany. After a three-month waiting period and submitting endless documentation (including a written justification for needing an account), the bank rejected the application, stating the "business model was not sufficiently transparent."
USA: Fast and Pragmatic In parallel, the same client formed an LLC in Texas. An account with a major bank was opened within one week. There was no endless paper war and no inquisitorial-style questioning. In Europe, he lost a quarter of a year to bureaucracy. In the US, his business was up and running.
The Core Difference: Suspicion vs. Trust
The fundamental divide is a mental one.
In the EU, the state operates on a principle of general suspicion: Every citizen is a potential money launderer until proven otherwise.
In the US, the state operates on a principle of trust: A citizen is a customer and an entrepreneur, not a suspect.
This single difference in mindset has a monumental impact on the day-to-day reality of running a business. The EU will strangle, while America lets you breathe.
Plan Your Next Move
If these trends concern you, you are not alone. Entrepreneurs across Europe are waking up to the reality that the regulatory walls are closing in. Protecting your assets, your privacy, and your freedom to do business requires strategic thinking.
Understanding how to leverage the advantages of the US system—from forming an LLC or Corporation to opening bank accounts and optimising your structure—is no longer a luxury, but a necessity. The time to explore your options is now, before the EU's grip tightens any further. If you are wondering how you can benefit from the business-friendly environment in the US, seeking expert guidance is the critical first step in securing your future.
