The European Union has taken a significant step forward in combatting financial crime with the introduction of the Sixth Anti-Money Laundering Directive (AMLD6). This updated directive revises and extends previous regulations to create a more robust and unified framework for compliance. Here’s a straightforward overview of what AMLD6 means for your business and the broader landscape.
- AMLD6 introduces more comprehensive risk assessments, now including risks associated with the non-implementation and evasion of financial sanctions. The European Commission will perform these assessments every four years, with biannual opinions from the newly established AML/CFT Authority (AMLA) ???. Member States must also update their national risk assessments every four years, though they can do so more frequently if needed.
- In terms of private sector compliance, AMLD6 expands obligations to new sectors, requiring detailed documentation to justify why these sectors are included under AML/CFT rules. Companies will need to assess the impact on their operations and provide extensive risk evaluations.
- Beneficial ownership information is a major focus under AMLD6. The directive mandates that Member States enhance the accuracy and transparency of this data. Authorities now have more power to verify and inspect beneficial ownership records, and access to these records is extended to legitimate interested parties, such as journalists and civil society organizations .
- For real estate and bank accounts, AMLD6 grants authorities direct access to real estate registers and mandates enhanced scrutiny of transactions involving real estate, bank accounts, and crypto assets. This is part of a broader push to tighten control over financial transactions and ownership.
- Financial Intelligence Units (FIUs) have also seen an upgrade. They now have secure communication channels and new powers to monitor and suspend transactions suspected of financial crimes ??. The new Fundamental Rights Officer will ensure that these powers are exercised with respect for fundamental rights.
- Supervision under AMLD6 is being reinforced with updated regulatory standards and additional powers. Supervisory colleges for financial and non-financial sectors will be established to improve coordination and oversight across different jurisdictions and sectors ????.
- In addition, sanctions for non-compliance have become more severe. Maximum fines have increased to EUR 10,000,000 or 10% of annual turnover, and periodic penalty payments can be imposed to ensure adherence to the new requirements ??. Regular reporting and cooperation with various EU bodies, including the AMLA and Europol, are now mandatory.
- AMLD6 brings several advantages, including enhanced risk management with more comprehensive assessments. The expanded coverage ensures a broader approach to tackling financial crime, improving transparency and accountability ??.
- Stronger enforcement measures, including higher fines and clearer sanctions, provide a stronger incentive for compliance. Enhanced cooperation between FIUs and the establishment of supervisory colleges also improve regulatory effectiveness ??.
- Improved access to beneficial ownership and real estate data will aid in tracking and investigating financial crime, while periodic risk assessments help stay ahead of upcoming threats ??.
Member States are required to enact the necessary laws, regulations, and administrative measures to comply with AMLD6 by 10 July 2027. This directive marks a significant step forward in the EU’s AML/CFT framework, demanding more transparency, stricter compliance, and improved coordination. Businesses must align with these new requirements to ensure effective implementation and maintain compliance. Stay proactive and ready for the changes AMLD6 brings to the financial landscape! ??
The full document of AMLD6 is attached below!
