The last three remaining texts of the AML-CTF Package (i.e. the AML Directive1, the AMLA Regulation2 and the AML Regulation3) have been published in the OJEU on 19 June 2024.
For more background on the content of the AML-CTF Package, please refer to our eAlert dated 26 April 2024.
The AML Regulation, which will be directly applicable in all EU Member States as from 10 July 2027, notably sets out new rules on:
- the extended scope of obliged entities subject to AML-CTF rules (such as cryptoassets' service providers ("CASPs"), luxury goods traders and, as the case may be, professional football clubs and agents);
- specifications on enhanced due diligence measures (for instance regarding cross-border correspondent relationships or in relation to certain high net-worth individuals);
- introduction of a new EU-wide limit of EUR 10,000 for cash payments (with certain exemptions as the case may be);
- clarifications on the definition of beneficial owners, including for multi-layered structures.
The AML Directive, to be mainly implemented by 10 July 2027,will also bring some changes to the organisation of AML-CTF systems at national level, for instance in relation to registers on beneficial ownership or regarding the responsibilities of and cooperation between FIUs and competent authorities (including in the non-financial sector).
The AMLA Regulation establishes the Authority for Anti-Money Laundering and Countering the Financing of Terrorism ("AMLA") which will be based in Frankfurt. The AMLA will notably be in charge of directly supervising high-risk entities operating in EU Member States (e.g. banks, asset management companies, CASPs, etc.) The AMLA will start its direct supervision duties for certain selected obliged entities in July 2028.
The AML-CTF Package will entail the need for obliged entities to review and adapt their current policies and procedures, internal processes and controls.
Footnotes
1. Directive (EU) 2024/1640 of the European Parliament and of the Council of 31 May 2024 on the mechanisms to be put in place by Member States for the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, amending Directive (EU) 2019/1937, and amending and repealing Directive (EU) 2015/849.
2. Regulation (EU) 2024/1620 of the European Parliament and of the Council of 31 May 2024 establishing the Authority for Anti-Money Laundering and Countering the Financing of Terrorism and amending Regulations (EU) No 1093/2010, (EU) No 1094/2010 and (EU) No 1095/2010.
3. Regulation (EU) 2024/1624 of the European Parliament and of the Council of 31 May 2024 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.