EU AML Regulation

In April 2024, the final text of the Regulation on anti-money laundering (AMLR), of the 6^th anti-money laundering Directive (AMLD) and of the anti-money laundering Authority (AMLA) was formally approved by the European Parliament at plenary session. AML Regulation is part of a wider package of EU laws to reform the EU’s framework for combatting money-laundering and terrorist financing (ML/TF). With the new package, without the need to be transposed into national legislation. The 6^th AML Directive (AMLD), which is also part of the package, will now govern the organisation of AML/CFT systems at national level in the EU Member States.

The AML Authority’s tasks will be to support the analysis of risks of ML/TF, to issue publications and provide trainings on ML/TF, and to report to the European Commission about the incorrect or missing transposition of the AML Directive. AMLA will also support the work of FIUs (national financial intelligence units). In respect to financial supervisors, AMLA will also have to take exceptional measures related to non-selected obliged entities’ compliance or risk exposure (at the request of the national financial supervisor), as well as settling with binding effects disagreements between national financial supervisors on how to act about an obliged entity. AMLA will also directly supervise certain credit and financial institutions where they operate in at least six Member States and whose residual risk profile is identified as high, the so-called selected obliged entities. The number of entities to be directly supervised by AMLA will be 40 at least. If more entities meet the requirements, the ones which are operating in the highest number of Member States would be included as selected obliged entities. AMLA’s seat will be Frankfurt, Germany.

The Council of the EU is expected formally approve the final texts at the end of May 2024 and then they will be published in the EU’s Official Journal and enter into force. The AML Regulation will start to apply three years from the date of entry into force (21^st day after its publication in the EU Official Journal). The 6^th AML Directive will need to be transposed into national legislation three years after the date of its entry into force, except from the Articles on access to beneficial ownership registers which need to be transposed two years after the date of entry into force. The AMLA Regulation will apply from 1 July 2025. 

Leaseurope will monitor the application of the new EU rules in the Member States and will provide support its members when clarifications are needed, especially regarding the provisions on customer and beneficial owner identification and verification.