Provisional agreement on AMLD6 and AMLR

The European Council and the European Parliament reached a preliminary agreement on parts of the European anti-money laundering package on 18 January 2024 (see link). We have also covered the comprehensive package of measures in the past (see, for example, link). The preliminary agreement sees on a new anti-money laundering regulation (AMLR), and a revision of the already existing anti-money laundering directive (AMLD6).

The new regulation provides, among other things, for the following changes:

• The sectors covered by the scope of the anti-money laundering rules are extended to almost the entire crypto sector, but dealers in luxury goods and soccer clubs are also brought under the scope of the regulation;
• A maximum limit of EUR 10 000 for cash payments; and
• The rules for registration of beneficial owners are harmonized and made more transparent, with the relevant threshold remaining at 25%.

The revised directive brings, among other changes, the following:

• Persons or entities subject to financial sanctions will be explicitly flagged in the UBO register going forward;
• Public access to the UBO register will be limited to those who have a legitimate interest, including journalists and civil society organizations; and
• FIUs will have the ability to suspend or stop transactions for further analysis.

The preliminary texts are currently being finalized before being submitted to the European Council and the European Parliament for final approval, after which they will be published in the Official Journal of the European Union.

After years of negotiations, the new AML/CFT framework at the European level is finally beginning to take shape. In December 2023, an agreement was also reached on the regulation creating the framework for a European Anti-Money Laundering Authority (link). It seems that 2024 will be the year that all relevant regulations and directives become final, and parties can actually start preparing for the new AML/CFT framework.