EU publishes the New AML CFT Regulation
EU publishes the New AML CFT Regulation
The new AML Regulation, the 6th AML Directive and the Regulation establishing the new EU AML Authority were formally adopted by the European Council and have been published in the EU’s Official Journal on the 19th of June 2024.
These form part of the new EU AML CFT Legislative Package that will replace the current existing AML CFT framework.
AML CFT Regulation
The purpose of this regulation is to develop of a single rulebook having direct applicability, in an effort to strenghten the mitigation of money laundering and terrorist financing (‘ML/TF’) risks and detect the misuse of the EU’s financial system for criminal purposes. A Regulation was drafted instead of a Directive with the intent of achieving harmonisation across Member States, given that directives are not directly applicable and must be transposed into national law by each Member State. This Regulation shall enter into force within twenty (20) days following its publication in the EU’s Official Journal.
6th AML CFT Directive
The purpose of the 6th AML Directive is to enhance the rules regarding beneficial ownership information and their recording in Central Registers, replacing the current AMLD4, as amended by the AMLD5. Member States must transpose the AMLD6 in their national legislation by 10 July 2027. There are certain exceptions in place, notably Article 74 which needs to be transposed into law by 10 July 2026, and Articles 11-13 and 15 which need to be transposed into law by 10 July 2026.The 6th AML Directive shall enter into force within twenty (20) days following its publication in the EU’s Official Journal.
Regulation establishing a new EU AML Authority (‘AMLA’)
The purpose of AMLA is to have a single supervisor at EU level, that shall contribute to the harmonisation of AML CFT controls within the EU and enhance and coordinate the exchange of information between Financial Intelligence Units. AMLA shall directly supervise a select number of obliged entities as from 2028.This Regulation shall enter into force within seven (7) days following its publication in the EU’s Official Journal.