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The AMLD5, also known as the Directive (EU) 2015/849 (the 5th anti-money laundering Directive) is a European Union directive that came into effect on January 10, 2020 and was adopted on May 30, 2018. The AMLD5 sets regulatory requirements for obliged entities/persons, in order to tackle money laundering, terrorism financing and other emergent issues. The following main goals have been defined under the 5AMLD:
- Addressing new areas that were insufficiently or not covered in the previous directive, such as crypto-currency; prepaid cards; beneficial ownership; Politically Exposed Persons (PEPs); high-value transactions; high-risk third countries and art transactions;
- Increase transparency in order to determine the ultimate beneficiaries of a company, and better determine their shareholding structure;
- Improve information access for Financial Intelligence Units (FIUs), by providing them with centralized bank account registers;
- Enhance cooperation and information exchanges between national money laundering authorities and the European Central Bank;
- Define new criteria in order to assess what high-risk third countries are and set a coherent framework for transactions from such countries.
Unterforen: Chapter I: General Provisions, Chapter II: Customer Due Diligence, Chapter III: Beneficial Ownership Information, Chapter IV: Reporting Obligations, Chapter V: Data Protection, Record-Retention and Statistical Data, Chapter VI: Policies, Procedures and Supervision, Chapter VII: Final Provisions, Annex: I, Annex: II, Annex: III, Annex IV: Correlation table

This sixth Directive on AML/CFT (“AMLD6”) will replace the existing Directive 2015/849/EU (the fourth AML directive, as amended by Directive 2018/843, the fifth AML directive).
AMLD6 imposes stricter requirements on companies to tackle financial crime and identify hidden beneficial ownership, and harsher penalties for those who fail with expanded criminal liability and punishments for money laundering offences. Its key provisions include:
• widening of the definition of money laundering offences that can be considered a criminal offence, including concealing the source of illicit gains, aiding, and abetting money laundering, and inciting and attempting the offence;
• additional punishments for companies convicted of money laundering, including fines and “temporary or permanent exclusion from access to public funding”;
• criminal liability extended to legal persons as well as companies. They are liable even in instances where the offences happen because of "lack of supervision or control”;
• maximum imprisonments of at least four years for individuals convicted of money laundering offences;
• the Directive is designed to encourage enforcement agencies in different EU countries to work together on anti-bribery and corruption investigations.
Unterforen: Chapter I: General Provisions, Chapter II: Registers, Chapter III: Financial Intelligence Units (FIUs), Chapter IV: Anti-Money Laundering Supervision, Chapter V: Cooperation, Chapter VI: Data Protection, Chapter VII: Final Provisions

The new Anti-Money Laundering Regulation (AMLR) strengthens the EU’s defense against financial crimes, introducing comprehensive measures and clear guidelines across various sectors. Annexes I to IVa detail risk assessments, lower and higher risk factors, high-value goods, and precious materials, aiding in the identification and prevention of money laundering and terrorist financing activities. These annexes provide essential insights for entities to implement robust AML practices, ensuring transparency and integrity in financial transactions.
Unterforen: Chapter I: General Provisions, Chapter II: Internal Policies, Procedures, and Controls, Chapter III: Customer Due Diligence, Chapter IV: Beneficial Ownership Transparency, Chapter V: Reporting Obligations, Chapter VI: Data Protection and Record-Retention, Chapter VII: Mitigating Risks from Anonymous Instruments, Chapter VIII: Final Provisions, Annex I, Annex II, Annex III, Annex IIIa, Annex IVa

Anti-Money Laundering Authority (AMLA) Regulation (AMLAR), which contains directly applicable provisions that create and enable AMLA’s operation. AMLA will have direct supervisory and enforcement powers as well as a mandate to be a central authority coordinating all national AML/CFT supervisors, not just those in the financial services sector, with a view to improving the effectiveness and consistency of AML and CFT supervision and enforcement. Although the AMLA will not replace national AML and CFT supervisors, it will have some direct supervisory powers over certain high-risk financial institutions and will be able to directly impose fines and penalties on persons who fail to comply with the AMLR.
Unterforen: Chapter I: Establishment, Legal Status and Definitions, Chapter II: Tasks and Powers of the Authority, Chapter III: Organisation of the Authority, Chapter IV: Financial Provisions, Chapter V: Staff and Cooperation, Chapter VI: General and Final Provisions, Annex I, Annex II

Unterforen: General Principles, Obligation to designate an AML/CFT Compliance Officer at Senior Management Level, Obligations regarding Drawing-up of a Summary Report on AML/CFT, Internal Audit Control, Relationship with Marketing Intermediaries and the Function of Registrar Agent

The most effective way to fight organised crime is going after criminals’ money, notably with asset recovery measures, which allow law enforcement authorities to discover and dismantle the broad networks of criminal organisations operating within and beyond the European Union.
Unterforen: Tracing and Identification of the Illegally Acquired Assets, Freezing of the Assets with a view to their possible subsequent Confiscation, Management of Frozen Assets to preserve their Value, Confiscation of the Illegally Acquired Assets, Disposal of the Confiscated Assets (including their Reuse for Public or Social Purposes)

sharing information with regulatory bodies and law enforcement; reporting suspicious transactions to authorities (e.g. Suspicious Activity Reports, SARs)
Unterforen: Luxembourg

identify and prevent such financing; measures typically involve monitoring financial transactions, implementing sanctions, and enforcing strict regulatory frameworks to detect and disrupt these activities; PF includes any financial support for related technologies and materials that could be used for relevant weapons and delivery systems

Know Your Customer (KYC) processes, ongoing monitoring of clients

Enhanced Due Diligence (EDD) for high-risk customers

establishing internal controls to prevent money laundering, regular internal and external audits, corrective actions based on audit findings

Environmental crime covers a wide range of activities, from illegal extraction and trade of forestry and minerals to illegal land clearance and waste trafficking. Actors involved in these crimes vary from large organized crime groups to multinational companies and individuals. Perpetrators of environmental crime rely on both the financial and non financial sector to launder their proceeds.
Unterforen: Illegal Extraction and Trade of Forestry, Illegal Extraction and Trade of Minerals, Illegal Land Clearance, Illegal Wildlife Trafficking, Waste Trafficking

Criminals are increasingly turning to the trafficking of human beings and the smuggling of migrants given the high profitability of these illegal activities. The money generated by such activities finds its way into the financial system.
Unterforen: Child Labour, Forced Begging, Forced Criminal Activities, Removal of Organs, Sexual Exploitation, Slavery and Servitude, Smuggling of Migrants

maintaining records of transactions and customer information, ensuring documentation is easily retrievable for audits, compliance with data protection regulations

international standards (e.g. FATF Recommendations), national regulations and laws, compliance programs and policies

understanding and complying with international sanctions, screening against sanctions lists (e.g. EU, UN), handling false positives and negative screenings
Unterforen: Asset Screening, Name Screening, EU Global Human Rights Sanctions Regime (EUGHRSR)

identifying and assessing risks related to money laundering and terrorist financing, implementing risk-based approaches, continuous monitoring and updating of risk assessments

use of AI and machine learning in AML/CFT processes, blockchain and its impact on AML/CFT, adoption of FinTech solutions to enhance compliance

employee training programs on AML/CFT practices, keeping staff updated on new regulations and trends, role-specific training for different departments

detecting suspicious activities, automated transaction monitoring systems

In implementation of the 4th EU Money Laundering Directive (2017), a transparency register was introduced to combat money laundering and terrorist financing. The aim of this transparency register is to make economic links transparent and disclose them.
Unterforen: France | Registre des Bénéficiaires, Germany | Transparency Register, Ireland | Central Register of Beneficial Ownership of Companies and Industrial and Provident Societies (RBO), Luxembourg | Registre des Bénéficiaires Effectifs (RBE)

regulation of VA and VASPs to combat money laundering and terrorist financing