Final Draft AMLR & 6th AMLD
AMLR
The new Anti-Money Laundering Regulation (AMLR) strengthens the EU’s defense against financial crimes, introducing comprehensive measures and clear guidelines across various sectors. Annexes I to IVa detail risk assessments, lower and higher risk factors, high-value goods, and precious materials, aiding in the identification and prevention of money laundering and terrorist financing activities. These annexes provide essential insights for entities to implement robust AML practices, ensuring transparency and integrity in financial transactions.
| AMLR |
|---|
| CHAPTER I GENERAL PROVISIONS |
| SECTION 1 SUBJECT MATTER AND DEFINITIONS |
| Article 1 Subject matter |
| Article 2 Definitions |
| SECTION 2 SCOPE |
| Article 3 Obliged entities |
| Article 4 Exemptions for certain providers of gambling services |
| Article 4a Exemptions of certain professional football clubs |
| Article 5 Exemptions for certain financial activities |
| Article 6 Prior notification of exemptions |
| SECTION 3 OUTSOURCING |
| Article 6a Notification of cross-border operations and application of national law |
| CHAPTER II INTERNAL POLICIES, PROCEDURES AND CONTROLS OF OBLIGED ENTITIES |
| SECTION 1 INTERNAL PROCEDURES, RISK ASSESSMENT AND STAFF |
| Article 7 Scope of internal policies, procedures and controls |
| Article 8 Business-wide risk assessment |
| Article 9 Compliance functions |
| Article 10 Awareness of requirements |
| Article 11 Integrity of employees |
| Article 11a Reporting of breaches and protection of reporting persons |
| Article 12 Situation of specific employees |
| SECTION 2 PROVISIONS APPLYING TO GROUPS |
| Article 13 Group-wide requirements |
| Article 14 Branches and subsidiaries in third countries |
| Article 14a Outsourcing |
| CHAPTER III CUSTOMER DUE DILIGENCE |
| SECTION 1 GENERAL PROVISIONS |
| Article 15 Application of customer due diligence |
| Article 16 Customer due diligence measures |
| Article 16a Reporting of discrepancies with information contained in beneficial ownership registers |
| Article 17 Inability to comply with the requirement to apply customer due diligence measures |
| Article 18 Identification and verification of the customer’s and beneficial owners’s identity |
| Article 19 Timing of the verification of the customer and beneficial owner identity |
| Article 20 Identification of the purpose and intended nature of a business relationship or occasional transaction |
| Article 21 Ongoing monitoring of the business relationship and monitoring of transactions performed by customers |
| Article 21a Temporary measures towards customers subject to United Nations’ financial sanctions |
| Article 22 Regulatory technical standards on the information necessary for the performance of customer due diligence |
| SECTION 2 THIRD-COUNTRY POLICY AND ML/TF THREATS FROM OUTSIDE THE UNION |
| Article 23 Identification of third countries with significant strategic deficiencies in their national |
| AML/CFT regimes |
| Article 24 Identification of third countries with compliance weaknesses in their national AML/CFT regimes |
| Article 25 Identification of third countries posing a specific and serious threat to the Union’s financial system |
| Article 26 Guidelines on ML/TF risks, trends and methods |
| SECTION 3 SIMPLIFIED CUSTOMER DUE DILIGENCE |
| Article 27 Simplified customer due diligence measures |
| SECTION 4 ENHANCED CUSTOMER DUE DILIGENCE |
| Article 28 Scope of application of enhanced customer due diligence measures |
| Article 29 Countermeasures to mitigate ML/TF threats from outside the Union |
| Article 30 Specific enhanced due diligence measures for cross-border correspondent relationships |
| Article 30a Specific enhanced due diligence measures for cross-border correspondent relationships for crypto-asset service providers |
| Article 30b Specific measures towards individual third country respondent institutions |
| Article 31 Prohibition of correspondent relationships with shell institutions |
| Article 31b Measures to mitigate risks in relation to transactions with a self-hosted address |
| Article 31c Specific provisions regarding applicants for residence by investment schemes |
| Article 32 Specific provisions regarding politically exposed persons |
| Article 33 List of prominent public functions |
| Article 34 Politically exposed persons who are beneficiaries of insurance policies |
| Article 35 Measures towards persons who cease to be politically exposed persons |
| Article 36 Family members and close associates of politically exposed persons |
| SECTION 5 SPECIFIC CUSTOMER DUE DILIGENCE PROVISIONS |
| Article 37 Specifications for the life and other investment-related insurance sector |
| SECTION 6 RELIANCE ON CUSTOMER DUE DILIGENCE PERFORMED BY OTHER OBLIGED ENTITIES |
| Article 38 General provisions relating to reliance on other obliged entities |
| Article 39 Process of reliance on another obliged entity |
| Article 41 Guidelines on reliance on other obliged entities |
| CHAPTER IV BENEFICIAL OWNERSHIP TRANSPARENCY |
| Article 42 Identification of Beneficial Owners for corporate and other legal entities |
| Article 42a Beneficial Ownership through ownership interest |
| Article 42b Beneficial Ownership through control |
| Article 42c Coexistence of ownership interest and control in the ownership structure |
| Article 42d Ownership structures involving legal arrangements or similar legal entities |
| Article 42e Notifications |
| Article 42f Identification of beneficial owners for legal entities similar to express trust |
| Article 43 Identification of beneficial owners for express trusts and similar legal arrangements |
| Article 43a Identification of a class of beneficiaries |
| Article 43b Identification of objects of a power and default takers in discretionary trusts |
| Article 43c Identification of beneficial owners of undertakings for collective investment and alternative investment funds |
| Article 44 Beneficial ownership information |
| Article 45 Obligations of legal entities |
| Article 46 Trustees obligations |
| Article 46a Exceptions to obligations of legal entities and legal arrangements |
| Article 47 Nominees obligations |
| Article 48 Foreign legal entities and arrangements |
| Article 49 Sanctions |
| CHAPTER V REPORTING OBLIGATIONS |
| Article 50 Reporting of suspicions |
| Article 51 Specific provisions for reporting of suspicious transactions by certain categories of obliged entities |
| Article 52 Refraining from carrying out transactions |
| Article 53 Disclosure to FIU |
| Article 54 Prohibition of disclosure |
| Article 54aThreshold-based reports of transactions in certain high-value goods |
| Article 54b Exchange of information in the framework of partnerships for information sharing |
| CHAPTER VI DATA PROTECTION AND RECORD-RETENTION |
| Article 55 Processing of personal data |
| Article 56 Record retention |
| Article 57 Provision of records to competent authorities |
| CHAPTER VII Measures to mitigate risks deriving from anonymous instruments |
| Article 58 Anonymous accounts and bearer shares and bearer share warrants |
| Article 59 Limits to large cash payments in exchange for goods or services |
| CHAPTER VIII FINAL PROVISIONS |
| SECTION 1 COOPERATION BETWEEN FIUS AND THE EPPO |
| Article 59a Cooperation between FIUs and the EPPO |
| Article 59b Requests for information to EPPO |
| SECTION 2 COOPERATION BETWEEN FIUS AND OLAF |
| Article 59c Cooperation between FIUs and OLAF |
| Article 59d Requests for information to OLAF |
| SECTION 3 OTHER PROVISIONS |
| Article 60 Delegated acts |
| Article 61 Committee |
| Article 62 Review |
| Article 64 Relation to Directive 2015/849 |
| Article 65 Entry into force and application |
Chapter I: General Provisions
- Subject Matter and Definitions: Establishes the regulation’s objectives and provides essential definitions for its application.
- Scope: Outlines the entities obliged to adhere to the regulation, including exemptions for specific sectors like certain gambling services, professional football clubs, and some financial activities. It also details the process for notifying exemptions.
Chapter II: Internal Policies, Procedures, and Controls
- Internal Procedures: Mandates obliged entities to implement comprehensive internal policies, procedures, and controls to mitigate money laundering and terrorist financing risks, including business-wide risk assessments and compliance functions.
- Group Provisions: Sets requirements for group-wide policies, especially for branches and subsidiaries in third countries, and addresses outsourcing.
Chapter III: Customer Due Diligence
- General Provisions: Describes when and how customer due diligence should be applied and the measures that should be taken.
- Third-Country Policy: Identifies procedures for dealing with countries that have significant deficiencies or pose a threat to the EU’s financial system.
- Simplified and Enhanced Due Diligence: Differentiates between simplified due diligence measures for lower-risk scenarios and enhanced measures for higher-risk situations, including specific protocols for dealing with politically exposed persons and cross-border correspondent relationships, especially in the context of crypto-assets.
Chapter IV: Beneficial Ownership Transparency
- Identification and Obligations: Details the requirements for identifying beneficial owners of various legal entities and arrangements, the obligations of legal entities, trustees, and nominees, and the sanctions for non-compliance.
Chapter V: Reporting Obligations
- Suspicious Activity Reports: Stipulates the obligations of entities to report suspicions of money laundering or terrorist financing and outlines specific provisions for certain categories of obliged entities.
Chapter VI: Data Protection and Record-Retention
- Personal Data and Records: Addresses the processing of personal data within the scope of AML/CFT activities and the retention of records, specifying the duration and conditions under which records must be kept and provided to competent authorities.
Chapter VII: Mitigating Risks from Anonymous Instruments
- Anonymous Instruments: Implements measures to mitigate risks associated with anonymous accounts, bearer shares, and large cash payments.
Chapter VIII: Final Provisions
- Cooperation and Review: Facilitates cooperation between Financial Intelligence Units (FIUs), the European Public Prosecutor’s Office (EPPO), and the European Anti-Fraud Office (OLAF). It also includes provisions for delegated acts, the establishment of a committee, and a review process to ensure the regulation’s effectiveness and adaptation over time.
The AMLR aims to strengthen the EU’s framework for combating financial crimes by enhancing transparency, accountability, and cooperation among member states and obliged entities, ensuring a robust defense against money laundering and terrorist financing activities.
Annexes
- Annex I: Lists risk variables for customer due diligence, including customer behavior, business activities, reputation, and connections to specific jurisdictions.
- Annex II: Details lower risk factors, considering customer types, product features, and geographical locations that might indicate reduced money laundering or terrorist financing risks.
- Annex III: Identifies higher risk factors across customer profiles, product types, transaction methods, and countries that may elevate the risk of financial crimes.
- Annex IIIa: Specifies high-value goods like jewelry, vehicles, aircraft, and watercraft, with set value thresholds, highlighting their potential use in money laundering.
- Annex IVa: Defines precious metals and stones, such as gold, platinum, diamonds, and rubies, underlining their relevance in the regulatory context.
6th AMLD
The 6th AMLD is a regulatory framework designed to prevent money laundering and terrorist financing within the European Union. The directive builds upon previous AML directives, introducing stricter regulations and extending the scope of obligations to more sectors and entities.
| 6th AMLD |
|---|
| CHAPTER I GENERAL PROVISIONS |
| Section 1 Subject matter, scope and definitions |
| Article 1 Subject matter |
| Article 2 Definitions |
| Section 2 National measures in sectors exposed to money laundering and terrorist financing |
| Article 3 Identification of exposed sectors at national level |
| Article 4 Requirements relating to certain service providers |
| Article 4a Requirements relating to the granting of residence rights in exchange for investment |
| Article 6 Checks on the senior management and beneficial owners of certain obliged entities |
| Section 2 Risk assessments |
| Article 7 Supra-national risk assessment |
| Article 8 National risk assessment |
| Article 9 Statistics |
| CHAPTER II REGISTERS |
| Section I Beneficial ownership registers |
| Article 10 Beneficial ownership registers |
| Article 11 General rules regarding access to beneficial ownership registers by competent authorities, self- regulatory bodies and obliged entities |
| Article 12 Specific access rules to beneficial ownership registers for persons with legitimate interest |
| Article 12a Procedure for the verification and mutual recognition of a legitimate interest to access beneficial ownership information |
| Article 12b Templates and procedures |
| Article 13 Exceptions to the access rules to beneficial ownership registers |
| Section 2 Bank account and custodial crypto-asset account information |
| Article 14 Bank account registers and electronic data retrieval systems |
| Article 15 Implementing acts for the interconnection of registers |
| Section 3 Real estate registers |
| Article 16 Single access point to real estate information |
| CHAPTER III FIUs |
| Article 17 Establishment of the FIU |
| Article 17a Fundamental Rights Officer |
| Article 18 Access to information |
| Article 19 Responses to requests for information |
| Article 19a Provision of information to supervisors |
| Article 20 Suspension or withholding of consent |
| Article 21 FIU annual report |
| Article 21a Feedback by FIU |
| Article 21b Alerts to obliged entities |
| Article 22 Cooperation between FIUs |
| Article 23 Protected channels of communication |
| Article 24 Exchange of information between FIUs |
| Article 25 Joint analyses |
| Article 26 Use by FIUs of information exchanged between them |
| Article 27 Consent to further dissemination of information exchanged between FIUs |
| Article 28 Effect of criminal law provisions |
| Article 28a Confidentiality of reporting |
| CHAPTER IV ANTI-MONEY LAUNDERING SUPERVISION |
| Section 1 General provisions |
| Article 29 Powers and resources of national supervisors |
| Article 29a Supervision of forms of infrastructure of certain intermediaries operating under the freedom to provide services |
| Article 30 Provision of information to obliged entities |
| Article 31 Risk-based supervision |
| Article 31a Contact points |
| Article 32 Disclosure to FIUs |
| Article 32a Provision of information to FIUs |
| Article 33 General principles regarding supervisory cooperation |
| Article 33a Provision of information on cross-border activities |
| Article 34 Provisions related to cooperation in the context of group supervision |
| Article 34b Supervisory cooperation regarding obliged entities carrying out cross-border activities |
| Article 35 Exchange of information in relation to implementation of group policies in third countries |
| Section 2 Cooperation within AML/CFT supervisory colleges and with counterparts in third countries |
| Article 36 AML/CFT supervisory colleges in the financial sector |
| Article 36a AML/CFT supervisory colleges in the non-financial sector |
| Article 37 Cooperation with supervisors in third countries |
| Section 3 Specific provisions relating to self-regulatory bodies |
| Article 38 Oversight of self-regulatory bodies |
| Section 4 Pecuniary sanctions and administrative measures |
| Article 39 General provisions |
| Article 39a Supervisory measures towards establishments of obliged entities and certain activities carried out under the freedom to provide services |
| Article 40 Pecuniary sanctions |
| Article 41 Administrative measures |
| Article 41a Periodic penalty payments |
| Article 42 Publication of pecuniary sanctions, administrative measures and periodic penalty payments |
| Article 43 Reporting of breaches and protection of reporting persons |
| Article 44 Exchange of information on sanctions |
| CHAPTER V COOPERATION |
| Section 1 AML/CFT cooperation |
| Article 45 General provisions |
| Article 46 Communication of the list of the competent authorities |
| Article 47 Cooperation with AMLA |
| Section 2 Cooperation with other authorities and exchange of confidential information |
| Article 48 Cooperation in relation to credit or financial institutions |
| Article 49 Cooperation in relation to auditors |
| Article 49a Cooperation with authorities in charge of implementing targeted financial sanctions |
| Article 50 Professional secrecy requirements |
| Article 51 Exchange of information among supervisors and with other authorities |
| Section 3 Guidelines on cooperation |
| Article 52 AML/CFT cooperation guidelines |
| CHAPTER VI DATA PROTECTION |
| Article 53 Processing of certain categories of personal data |
| CHAPTER VII FINAL PROVISIONS |
| Article 53a Delegated acts |
| Article 54 Committee |
| Article 55 Transitional management of FIU.net |
| Article 55a Amendments to Directive (EU) 2015/849 |
| Article 56 Review |
| Article 56a Amendment to Directive (EU) No 2019/1937 |
| Article 57 Repeal |
| Article 58 Transposition |
| Article 59 Entry into force |
| Article 60 Addressees |
Chapter I: General Provisions
- Section 1: Outlines the subject matter, scope, and definitions critical to understanding and implementing the directive.
- Section 2: Details national measures for sectors particularly exposed to money laundering and terrorist financing risks, including the identification of exposed sectors at the national level and specific requirements for certain service providers.
Chapter II: Registers
- Section 1: Focuses on beneficial ownership registers, establishing the requirements for maintaining and accessing these registers to improve transparency about the true owners of businesses and trusts.
- Section 2: Addresses the creation and maintenance of bank account and custodial crypto-asset account registers, enhancing the ability to track financial flows and identify suspicious activities.
- Section 3: Introduces provisions related to real estate registers, aimed at preventing the real estate sector from being used for money laundering purposes.
Chapter III: Financial Intelligence Units (FIUs)
- This chapter covers the establishment, roles, and responsibilities of FIUs, including their access to information, cooperation mechanisms, and the exchange of information both domestically and internationally.
Chapter IV: Anti-Money Laundering Supervision
- Section 1: Details the powers and resources of national supervisors, emphasizing a risk-based approach to supervision.
- Section 2: Discusses cooperation within AML/CFT supervisory colleges and with counterparts in third countries, aiming to enhance supervisory collaboration across borders.
- Section 3: Covers specific provisions related to the oversight of self-regulatory bodies.
- Section 4: Outlines the framework for imposing pecuniary sanctions and administrative measures on entities that fail to comply with AML/CFT regulations.
Chapter V: Cooperation
- This chapter emphasizes the importance of cooperation among various authorities involved in AML/CFT efforts, including guidelines for such cooperation and the exchange of confidential information.
Chapter VI: Data Protection
- Addresses the processing of specific categories of personal data within the context of AML/CFT efforts, ensuring compliance with data protection regulations.
Chapter VII: Final Provisions
- Includes delegated acts, transitional arrangements, amendments to existing directives, and provisions related to the transposition, entry into force, and addressees of the directive.
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