The European Union published a new package of regulations on anti-money laundering/countering the financing terrorism (hereinafter the “AML/CFT regulation package”) on 19 June 2024. The new regulations are mainly aimed at strengthening controls over the flow of money, as well as improving the detection of criminal activities. The changes relate to the organization of the AML/CFT procedures in the European Union and are expected to strengthen the system for obligated institutions in the EU.
What are the main changes?
- creation of AMLA- Anti-Money Laundering and Countering the Financing of Terrorism Authority
AMLA is to act as a central supervisory body. Its main task will be to ensure uniform AML/CFT standards in the European Union. In addition, it is to coordinate the AML/CFT activities of national supervisors as well as the Union’s institutions.
- easier access to information on beneficial owners
According to the AML Directive VI, access to information on beneficial owners can be granted to persons with legitimate interest, for example: academia, NGOs and investigative journalists.
- new limits for cash payments for goods or services
The regulatory package introduces an EU payment limit of €10,000. Member states may adopt a lower limit, in Poland it is PLN 15,000.
- uniformity of customer due diligence measures
Uniform rules for identifying the customer and the beneficial owner will be introduced, as well as controlling economic relations, their nature and purpose.
- expansion of the scope of entities required to comply with the introduced regulations
These will include providers of crowdfunding services, as well as those trading in precious metals, as well as other high-value goods.
What impact could the new regulations have on businesses?
- obligation to modify company procedures and policies in accordance with the new AML/CFT regulations,
- adaptation to new supervisory standards with emphasis on supervision of implementation of financial sanctions requirements,
- familiarization of employees with AML/CFT procedures and requirements.
The above regulations will come into effect gradually over the next few years, allowing internal systems and strategies to adapt to the new law.
SKLAW provides comprehensive support in the process of adapting the new AML/CFT regulations. We provide a customized approach and comprehensive clients services.