As per the article published earlier this year on this website, Council and Parliament Unveiling Stricter Anti-Money Laundering Rules, the European Union (the “EU”) has developed a revamped anti-money laundering (“AML”) package. On the 19th of June 2024, the European Council approved this package and has published it in the EU’s Official Journal (“OJ”)
The key aims of the AML package are to improve the ability of the financial system to detect suspicious transactions and activities, closing gaps exploited by criminals to launder illicit proceeds or finance terrorist activities. The regulatory framework is deemed to have been adapted to cater for new and emerging challenges brought about by technological innovation, the increased integration of financial flow in the single market and the global nature of terrorist organisations.
The AML Package comprises of primarily three legal instruments:
- 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 (“AMLD 6”),
- 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 (“AMLR”),
- 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 (“AMLA-R”).
Originally, the AML Package was also intended to include the Funds Transfer Regulation (“FTR”) which would regulate the information accompanying transfers of funds and certain crypto-assets. However, this was published together with the Markets in Crypto Assets Regulation – MiCAR in the OJ in June 2023 and will become applicable as of the 30th of December 2024.
The AMLD6 came into force twenty days after its publication in the OJ, and all Member States are expected to transpose it in their national legislation by the 10th of July 2027. By then the AMLD 4, as amended by AMLD5, would have been repealed. There are also particular articles which due to their nature are set to be transposed even earlier. Article 74 AMLD 6, which will amend the accessibility of central registers of beneficial ownership of corporates and trusts, must be transposed by the 10th of July 2025, Article 11-13 and 15 AMLD 6 are to be transposed by 10th of July 2026. These articles will be amending certain notions and exceptions regarding beneficial owners registers, mainly with regards their access by competent authorities, self-regulatory bodies and the public. Meanwhile, Article 18 AMLD 6 which tackles provisions on the single access point to real estate information, must be transposed by the 10th of July 2029.
The AMLR also came into force twenty days following its publication in the OJ and is set to start applying three years after its publication which shall be the 10th of July 2027. It should be noted that provisions that include football agents and professional football clubs within the purview of obligated entities, regarding specific types of transaction shall become applicable as of the 10th of July 2029.
The AMLA-R will mainly come into effect on July 1, 2025; several articles however, mainly those in relation to the Authority to be established and the right to the competent authorities within the EU to create regulatory technical standards.
For more details or assistance regarding the update to this regime, feel free to contact us.
