On April 24, 2024, the European Parliament adopted a new anti-money laundering legislative package to strengthen the EU’s tools to combat money laundering and terrorist financing.
The package includes
• the sixth Anti-Money Laundering Directive (“AMLD6”) as well as
• the EU Regulation on a Single Rulebook and
• a new central supervisory authority.
Extended access to beneficial ownership data
A key aspect of the new legislation is to ensure that persons with a legitimate interest – including journalists, civil society organizations, supervisory authorities and other relevant stakeholders – have direct and unhindered access to beneficial ownership data.
This information, stored in national registers and networked at EU level, also includes historical data going back at least five years. In the case of legal entities, a beneficial owner is any natural person who owns more than 25% of the capital or voting rights of a legal entity or exercises control in any other way. The information on the beneficial owner includes the name, date of birth, nationality, country of residence and the nature and extent of the beneficial interest of the owner.
Stricter due diligence obligations for obliged entities under money laundering law
The new regulations require obliged entities to implement stricter due diligence measures.
Obliged entities under money laundering law include, for example
• Banks
• Asset managers
• Crypto asset service providers (“CASPs”)
• Real estate and virtual real estate agents
• Lawyers, auditors and notaries
• Retailers of luxury goods
In future, the obliged entities will not only have to check the identity of their customers more thoroughly, but also report suspicious activities.
From 2029, this will also apply to professional football clubs involved in high-value financial transactions.
Restrictions on cash payments and stricter monitoring
The legislative package introduces an EU-wide limit for cash payments of EUR 10,000, except in the non-professional sector between private individuals.
In addition, increased monitoring of particularly wealthy individuals (total assets of at least EUR 50,000,000, excluding their main residence) will be implemented.
New central supervisory authority: AMLA
The new Anti-Money Laundering and Terrorist Financing Authority (“AMLA”) will be established in Frankfurt, Germany. AMLA will not only directly supervise the highest-risk financial companies but will also serve as a central coordination point for national supervisory authorities and monitor the enforcement of targeted financial sanctions.
Outlook
Formal adoption by the Council of the European Union is still pending before the new regulations can enter into force. Once adopted, the laws will be published in the EU Official Journal.
Those subject to anti-money laundering obligations should therefore familiarize themselves with the new regulations and extended due diligence obligations now.
