AMLD6 focuses on expanding compliance requirements and aiming for a more unified framework across member states. Photo free of rights

AMLD6 focuses on expanding compliance requirements and aiming for a more unified framework across member states. Photo free of rights

As the regulatory landscape in the EU evolves, businesses must navigate challenges and opportunities brought by the sixth Anti-Money Laundering Directive (AMLD6). Building on the frameworks of AMLD4 and AMLD5, AMLD6 introduces stricter protocols, expands predicate offenses, and emphasises technology. Parva Consulting shares an analysis of the implications and impacts of this directive.

Major changes from AMLD4 and AMLD5

AMLD4 emphasised beneficial ownership transparency and AMLD5 added virtual currency platforms and strengthened information-sharing. AMLD6 focuses on expanding compliance requirements and aiming for a more unified framework across member states. Key changes are: 

– Expanded scope and beneficial ownership: Enforce stricter rules on beneficial ownership, introduce centralised registers to improve data accuracy and enhance cross-border cooperation between Financial Intelligence Units (FIUs).

– Technological advancements: Push organisations to adopt regtech solutions to automate compliance processes and enhance access to ownership data across borders.

– Strengthened regulatory framework: Establish the Anti-Money Laundering Authority (AMLA) to supervise obliged entities and promote regulatory harmonisation across the EU.

– Increased penalties and accountability: Significantly raise penalties for non-compliance and hold legal entities responsible for failing to prevent money laundering.

What businesses need to do

AMLD6 advances the EU’s strategy against money laundering and terrorist financing. To stay compliant, businesses must act decisively by:

– Centralising beneficial ownership records: Accurate documentation of beneficial ownership information to meet AMLD6’s transparency requirements.

– Enhancing collaboration with FIUs: As FIUs gain greater powers, businesses need to cooperate fully with data-sharing efforts.

– Conducting regular risk assessments: A risk-based approach including regular assessments of vulnerabilities to money laundering will be essential for compliance.

– Adopting advanced technology solutions: Regtech solutions will play a critical role in helping businesses automate compliance processes and ensure cross-border data access.

– Prioritising real estate compliance: Real estate professionals need to understand new reporting requirements and ensure compliance with the unified access system of property data.

– Strengthening internal controls: Ensure that personnel responsible for AML compliance are well-trained and aware of their expanded legal responsibilities.

Key implementation milestones of the sixth Anti-Money Laundering Directive (AMLD6). Image: Parva Consulting

Key implementation milestones of the sixth Anti-Money Laundering Directive (AMLD6). Image: Parva Consulting

Implementing AMLD6

Companies will need to reassess their technology infrastructure to meet new standards for transaction monitoring and screening. Key steps for businesses include:

– Enhancing CDD procedures: Continuous monitoring of transactions for suspicious activity will be vital to staying compliant.

– Utilising AI and machine learning: Advanced technology tools can help companies detect and flag suspicious behaviours more effectively and focus on vigilance.

In conclusion, navigating the complexities of AMLD6 can be overwhelming, but it’s essential for businesses to act now.

For information about AMLD6 and its implementation in business, contact by or visit the .

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