Bank Challenge #4 = Rapidly changing and increasingly stringent regulatory requirements
National AML policies to prevent and punish money laundering go back to the 1970s. In 1991, the EU adopted an anti-money laundering directive (AMLD) to prevent criminals from taking advantage of the free movement of capital in the internal market and to harmonise the Member States’ efforts to tackle money laundering. Since then, the EU has updated the AMLD several times to counter threats to the internal market from money laundering and to prevent terrorist financing.
One of the most important recent developments for FI is the implementation of the 6th Anti-Money Laundering Directive (‘6AMLD’) which came into force in June 2021. 6AMLD is a critical development in EU policy and comes after a series of major scandals that have raised questions about the effectiveness of the EU’s approach to AML.
6AMLD is part of an increasingly stringent regulatory approach to AML. FIs that are insufficiently equipped to implement and enforce these regulations run the risk of huge fines as well as irreparable damage to their reputation. Consequently, FIs must ensure that they have agile and robust processes in place so that they can remain compliant in this dynamic regulatory environment while continuing to serve their customers optimally.
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