EU’s new Anti-Money Laundering package announced
Published 5 July 2024
Category: Financial Regulation
On 19 June 2024 EU’s new Anti-Money Laundering (“AML”) package was announced. The new AML package has been long in the making, and the Commission presented its package of legislative proposals as early as July 2021. See previous Pulse Update about the Commission’s proposals here.
The new AML package consists of the following three legislative instruments:
- The 6th Anti-Money Laundering Directive (“AMLD6”) (Directive (EU) 2024/1640)
- The Anti-Money Laundering Regulation (“AMLR”), (Regulation (EU) 2024/1624)
- The Anti-Money Laundering Authority Regulation (“AMLAR”) (Regulation (EU) 2024/1620)
Pursuant to the new AML package, the scope of the anti-money laundering regulations is extended to include:
- Football agents and professional football clubs involved in transactions
- Crowdfunding service providers and crowdfunding intermediaries
- Companies that trade precious metals and precious stones, either regularly or as their main business activity
- Companies that trade high-value goods, either regularly or as their principal business activity
- Large parts of the crypto sector
Also, the new AML package further strengthens existing requirements and introduces several new requirements, including:
- The transaction value triggering KYC obligations is reduced from EUR 15,000 to EUR 10,000 for occasional transactions
- The period between updating and continuous monitoring of business contacts cannot exceed one year for high-risk customers and five years for all other customers, as opposed to the current and more flexible “when deemed appropriate” approach
- A ban on anonymous bank and crypto accounts is introduced
- A new definition of “Beneficial ownership through control” is introduced, including a proposal to potentially lower the 25% threshold for the identification of beneficial ownership of legal entities through ownership
- The definition of politically exposed person (“PEP”) is extended to include siblings and leaders of regional and local authorities
- Entities subject to the AML regulations must establish an independent audit function to test internal policies, procedure and controls.
- Employees who directly contribute to ensuring that an obliged entity complies with the anti-money laundering regulations must undergo a “fit & proper”-like assessment, which must be carried out by the entity itself.
What’s next: The new AML package grants the Commission and the new Anti-Money Laundering Authority (“AMLA”) the power to adopt further regulations and guidelines. The Commission will adopt delegated acts to supplement the new rules and the AMLA will issue guidelines related to, among other things, internal policies. The application of the new AML package will be progressive and it will apply fully from 10 July 2027.
Tags: KYC / AML
Also tagged ‘KYC / AML’
Proposal for Stronger EU AML/CFT Rules
On 21 July 2021, the European Commission presented a package of legislative proposals to strengthen the EU’s anti-money laundering and countering the financing of terrorism (AML/CFT) rules.
KYC / AMLThe Danish FSA (Finanstilsynet) Strengthens Supervision within Anti-money Laundering and Counter Terrorist Financing
The Danish FSA has announced that they are strengthening their supervisory activities within anti-money laundering and counter terrorist financing by implementing a number of new measures.
KYC / AMLProposal to Increase Certain Requirements for Managers under the AIFM and AML Act Published for Consultation
On 28 August 2019 the Danish FSA (in Danish: Finanstilsynet) published for consultation a draft proposal to change, among others, the Danish AIFM Act and the Danish AML Act.
ComplianceDanish RegulationKYC / AMLWhistleblowingDanish Parliament Strengthens Registration Requirements of Ultimate Beneficial Owners
On 2 May 2019, the Danish Parliament adopted amendments to the Danish Companies Act, which implements part of the 5th EU Anti-Money Laundering Directive.
Beneficial OwnershipComplianceDanish RegulationDisclosure RequirementsKYC / AMLProposal to Strengthen the Registration of Ultimate Beneficial Owners
On 13 March 2019, the Danish Government presented a proposal for an amendment of various acts including the Danish Companies Act which implements part of the 5th EU Anti-Money Laundering Directive concerning the registration of ultimate beneficial owners.
Beneficial OwnershipComplianceDanish RegulationDisclosure RequirementsKYC / AMLOther updates
The Danish FSA: Managers need to ensure truly sustainable investments
The Danish Financial Supervisory Authority (the “Danish FSA”) has initiated an inspection of three managers in September 2024.
SFDRSustainabilityThe Danish FSAThe Omnibus package and its impact on EU’s ESG regulation
Yesterday, the European Commission revealed the proposal for the Omnibus Simplification Package.
CSDDDCSRDDisclosure RequirementsSustainabilityThe Danish FSA has updated the report on fitness assessments
On 5 February 2025, the Danish FSA published a new and updated version of its report detailing its practice regarding the fitness assessment of board members, executive management members and key persons in financial businesses.
Danish RegulationGovernanceThe Danish FSAEU Commission calls for review of certain outbound investments
On 15 January 2025, the European Commission issued a recommendation urging EU Member States to review investments out of EU for risks of enabling technology transfers/leakage into third countries (‘outbound investments’).
Cross-BorderThe Danish government has presented bills for implementing the NIS2 Directive and the CER Directive
On 6 February 2025, the bills for implementing the NIS2 Directive and the CER Directive were presented by the Danish government to the Danish Parliament.
CERCybersecurityNIS2EU Competitiveness Compass – ESG takeaways
29 January 2025, the EU Commission published its Competitiveness Compass which sets out a compass that will guide the work in the coming five years and lists priority actions to reignite economic dynamics in Europe, according to the communication.
CSDDDCSRDDisclosure RequirementsSFDRSustainability