EU’s new Anti-Money Laundering package announced

Published 5 July 2024

PrintCategory: 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:

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


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