Following a number of major European bank scandals, The European Union’s 6th Anti-Money Laundering Directive (6AMLD) came into effect on 3rd December 2020. All regulated entities operating within the EU will need to be compliant by 3rd June 2021.
The 6AMLD builds on the previous 4th and 5th AMLDs and aims to strengthen anti-money laundering rules within EU countries as it expands the scope of the current legislations whilst driving forward more powerful EU member state co-operation in the unified fight against Money Laundering and Terrorist Financing.
The 6AMLD provides a list of the 22 predicate crimes that constitute money laundering. This list -aims to standardise and broaden the definition of money laundering across member states. It also sees cybercrime and environmental crime included in the list for the first time.
Expanded regulatory scope
The new directive seeks to punish not only those who benefit directly from money laundering but also those involved in aiding, abetting, inciting or attempting to launder money who will now be subject to the same penalties.
Extension of criminal liability
The 6AMLD seeks to extend the liability from individuals (such as MLROs) to legal entities such as companies and business partnerships.
The 6AMLD sees an increase of a minimum prison sentence from 1 to 4 years for money laundering offences. Organisations can also be prevented from accessing public funding.
EU member states cooperation
The EU’s 6AMLD encourages cooperation between member states with regards to the handling of money laundering offences and the prosecution and conviction of criminals. They are to work together to centralise all legal processes within one single EU jurisdiction.
Following Brexit, the UK government has chosen not to adopt the rules outlined in the 6AMLD based on the fact that the domestic regulatory framework more than covers such rules. Despite this, any regulated UK company whose business operations extend within Europe must still comply with the 6 AMLD rules.
Preparing for 6AMLD
With only 3 months to go before implementation date, it is crucial that banks, financial institutions, gaming companies and other similarly regulated entities are fully prepared and their compliance teams up-to-date with the right processes and tools in place to be 100% compliant.
ComplyRadar is here to offer the technical support needed to stay on top of transaction monitoring requirements and ensure the efficient use of resources through minimal false positives as well as avoidance of hefty fines. ComplyRadar caters for different companies through a customised approach and hence offers maximum flexibility and agility in an environment which is constantly changing. Top management, will be able to have full visibility through the effective case management possibilities.