EU AML/CFT package: the European Commission sets a goal for European harmonization and to create a new EU anti-money laundering authority (AMLA)
In July 2021, the European Commission (EC) presented an anti-money laundering and counter-terrorism financing package with four legislative proposals. The first proposal is creating a new EU AML Authority (AMLA) to oversee AML/CFT supervision in the EU and enhance cooperation among financial intelligence units (FIUs).
It aims to be operational in 2024.To achieve this goal, the AMLA will:
✓ directly supervise financial sector entities exposed to the highest risk of money laundering and terrorism financing (ML/FT),
✓ hold a coordination role in the non-financial sector and establish standards for reporting and information exchange that supports joint operational analyses, and
✓ host the central online system FIU.net. The second proposal aims to harmonize each Member State's f ML/CTF measures by establishing a new EU single rulebook on AML/CFT.
Language: English
Price (full seminar):
1 100 USD
This is a 9-week course. Each module will be delivered every week.
Scope: Credit institutions; Insurance corps.; High risk corps.; fintech; US, UK & EU; all employees
The new EU AML/CFT will contain applicable rules to transform the AML Directive into a European AML regulation.
One crucial reform clarifies risk management procedures, including amendments to customer due diligence measures or beneficial ownership. The regulation also introduces new definitions, new obliged entities, amendments regarding politically exposed persons (PEPs), and additional internal organization requirements. The third proposal is the sixth AML Directive (AMLD VI) that will repeal the existing Directive 2015/849/E U (AMLD IV, as amended by AMLD V). It aims to integrate the Financial Action Task Force's (FATF) recommendations on assessing and mitigating evasion risks of targeted financial sanctions. There are also substantive changes aimed to help converge the practices of supervisors and cooperation among national competent authorities.
The last proposal of the package amends the 2015 Regulation on Transfer of Funds to include crypto-asset transfers. Crypto-asset service providers must include complete information about the sender and beneficiary of virtual-asset transfers, which payment service providers already provide for wire transfers. On 1 December 2021, the European Council agreed on a mandate to negotiate with the European Parliament on the proposal to update the existing rules on the information included in fund transfers.
The imposition of a uniform set of AML/CTF rules and the creation of an EU-wide authority to enforce them could significantly eliminate any existing discrepancies between Member States. The package will also help the EU comply with the FATF's current standards.
Courses:
1. Introduction to the EU AML/CFT regulatory framework
2. The new Anti-Money Laundering Authority (AMLA)
3. The Single EU Rule Book for AML/CFT
4. EU AML/CFT requirements regarding for cash transactions
5. The new EU AML/CFT framework for the transfer of funds and Virtual Services Providers (VSPs)
6. EU AML/CFT correspondent banking
Download
Training Guide
On July 20th, 2021, the European Commission introduced a new AML/CFT package to strengthen the EU's AML/CFT regulatory framework. The package harmonizes AML rules in the European Union and creates a new Anti-Money Laundering Authority. On February 22nd, 2022, the European Commission introduced a trainer's manual and its corresponding user's manual.
The creation of the AMLA is part of an ambitious effort from the European Commission to protect EU citizens and the European financial system from ML and terrorist financing.
The aim is to transform AML supervision in the EU and enhance cooperation among financial intelligence units (FIUs).
The Single Rule Book for AML/CFT refers to the unified regulatory framework that will follow the creation of the AMLA. The AMLA is expected to set rules at the EU level that will be granular and far more detailed than previously, including a certain number of Regulatory Technical Standards(RTS) such as the European Banking Authority. It's expected to be in place by end 2025.
Under the new AML/CFT regulatory framework, current EU members know the risks posed by payments using large amounts of cash to trade goods. In this case, we are referring to cash payments above EU R 10.000 to apply strict AML requirements. The European Commission introduced at the EU level a maximum large cash transaction of EUR 10.000.
The new rules aim to extend the EU AML/CFT regulatory framework to transfers of crypto-assets. The amendment of Regulation 2015/847/E U is in line with the "travel rule" of Recommendation 15 of the FATF that ensures that Virtual Service Providers (VSPs). The new rules will regulate the crypto-sector and push VSPs to provide more information.
According to the UNODC, the amount of money being laundered every year is increasing and is now equivalent to 2-55 of the global GDP - U$D 800 G - U$D 2T. As a crime, money laundering uses actively correspondent banks to facilitate cross-border money laundering transactions. Know-Your-Customer (KYC) due diligence remains a key element of correspondent banking.
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