New AML Directive

DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL ON MECHANISMS TO BE IMPLEMENTED BY THE MEMBER STATES TO PREVENT THE USE OF THE FINANCIAL SYSTEM FOR THE PURPOSE OF MONEY LAUNDERING OR TERRORIST FINANCING, REPEALING DIRECTIVE 2015/849

[New AML Directive]

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Summary

While the AML Regulation deals with the provisions directly addressed to obliged institutions, the New AML Directive is intended to regulate the organizational and institutional rules of the AML/CFT system at the Member State level.

Impact

Although the New AML Directive contains mainly institutional and organizational provisions, the regulations introduced thereby will affect a number of entities that are obliged institutions. In addition, the New AML Directive will allow Member States, under certain conditions, to extend the scope of the AML Regulation to other areas not covered thereby. The most significant provisions of the New AML Directive will relate to:

• obligations of Member States to introduce licensing or registration duties for certain obliged institutions not already covered by these obligations
• establishment of contact points for payment service providers, e-money issuers and cryptoasset service providers with cross-border activities
• new warranty requirements for executives of certain obliged institutions
• principles for conducting national and transnational risk assessment
• operations of registers: beneficial owners, bank accounts and real estate
• rules of operation for FIUs, supervisors and self-regulatory bodies
• rules of administrative sanctions