The Council and the Parliament have recently achieved a provisional agreement to establish a new European authority, the Anti-Money Laundering Authority (AMLA), as the part of the anti-money laundering package. This initiative is designed to safeguard EU citizens and the EU's financial system from the threats of money laundering and terrorist financing. In this article, we provide a concise overview of the EU’s latest anti-money laundering (AML) package, with a particular emphasis on the AMLA.

This article was written by Nicky Goes ([email protected]) and Sefa Gecikli ([email protected]), who are focused on financial economic crime, sanctions and international trade compliance within Rsm Netherlands Business Consulting.

 

Decoding the EU AML Package

The EU's Anti-Money Laundering (AML) package is a comprehensive set of four legislative components, each targeting specific aspects of money laundering and terrorist financing.

  • EU 'Single Rulebook' Regulation: This regulation outlines standardized rules for customer due diligence and the identification of beneficial owners. It addresses the use of anonymous instruments, including crypto-assets, and integrates new entities such as crowdfunding platforms into the regulatory framework. Additionally, it contains provisions regarding 'golden' passports and visas, aiming to tighten control over these practices.
  • 6th Anti-Money Laundering Directive: This directive focuses on strengthening national oversight, enhancing the role of Financial Intelligence Units (FIUs), and bolstering information sharing protocols. It aims to provide authorities with access to critical information, such as beneficial ownership registries and data on assets in free zones, enhancing transparency and regulatory efficacy.
  • AMLA Regulation: This establishes the European Anti-Money Laundering Authority (AMLA), granting it supervisory and investigative authority. AMLA is tasked with ensuring stringent compliance with AML and Counter-Financing of Terrorism (CFT) requirements across the EU, representing a significant step forward in harmonizing AML efforts.
  • Transfers of Funds Regulation: An amendment to the existing EU Transfer of Funds regulation, this piece extends its scope to include information accompanying transfers of funds and certain crypto-assets. The amendment is designed to enable the tracing of these transfers, thereby closing gaps that could be exploited for money laundering or terrorist financing.

Understanding AMLA Regulation

The Anti-Money Laundering Authority (AMLA) will have both direct and indirect supervisory powers over high-risk entities in the financial sector. This development is a part of a provisional agreement reached by the Council and the Parliament, focusing on creating a new European authority for countering money laundering and financing of terrorism.

AMLA's supervisory powers include the direct supervision of certain high-risk credit and financial institutions, such as crypto asset service providers, especially those operating across borders. The authority will select up to 40 high-risk credit and financial institutions across several member states for supervision. These entities will be supervised by joint supervisory teams led by AMLA, which will conduct assessments and inspections. For entities not selected by AMLA, the supervision will primarily remain at the national level.

For the non-financial sector, AMLA will play a supporting role, reviewing and investigating potential breaches in AML/CFT framework application. It will issue non-binding recommendations, and national supervisors have the option to set up a college for a non-financial entity operating across borders if necessary.

AMLA will also monitor that selected obliged entities have policies and procedures in place to ensure the implementation of targeted financial sanctions, including asset freezes and confiscations. Moreover,  the new authority will deal with reports from the financial sector and can attend to reports from employees of national authorities.

How RSM Can Assist You

As the landscape of anti-money laundering continually evolves, it becomes imperative for businesses to adapt and comply with these complex regulatory changes.

Our team at RSM, possessing profound expertise in financial regulation compliance and risk management, is well-equipped to steer businesses through these intricate challenges. We cater specifically to medium-sized enterprises and family businesses, recognizing the unique needs and regulatory landscapes of each client, both domestically and internationally.