6AMLD: What Now?
The 6th Anti-Money Laundering Directive (6AMLD) is ready and had to be implemented by member states and their obliged entities by June 2021. A keyword important for the 6th directive is accountability. The responsibility for detecting and minimizing the effects of money laundering is now largely put on obliged entities, its employees, and senior positions. The 6th directive widens the scope of Money Laundering to adapt to ever-changing threats.
A standardized definition of money laundering:
22 predicate offences are now included in the definition of money laundering, including cybercrime which has not been mentioned in any EU AML directive until now. The standardization of the definition is meant to clarify and simplify the work to combat money laundering. Companies should therefore adapt their routines and have systems in place to be able to discover and prevent any of the 22 predicate offences.
The minimum sentence for money laundering is now a jail term of four years, compared to the previous one year. The prolonged penalty reflects the severity of breaching the rules, as well as EU’s increased commitment to combat money laundering. The penalties must be included in the criminal law of member states and applies to all the 22 predicate offences now included in the definition of money laundering.
Enablers will be punished:
The 6AMLD states that “aiding and abetting” is now punishable by law. Those caught helping launder money in any way, even if it’s indirect, will be pursued. Under the same principle, people who incite money laundering or attempt to launder money will also be legally accountable. As with the list of 22 predicate offenses, companies should now adapt and make sure they have systems in place to discover and stop customers and employees from “aiding and abetting” money laundering.
Extension of criminal liability:
One of the major changes in the 6th directive is that a legal person can be pursued for money laundering. This includes companies and its supervisors or people in key positions. The individuals in key positions can be held accountable for insufficient control, processes and failings that results in money laundering. Obliges entities have already been held accountable for inadequate control in Norway through fines, but the possibility to punish supervisors for a company’s failings is a new addition. The responsibility for detecting money laundering is largely put on obliged entities with the new rules and gives financial authorities the possibility to target companies that do not have adequate AML and CTF routines.
Cooperation between member-states:
In today’s globalized and interconnected world, money laundering and financial crime often occurs in more than one jurisdiction. The 6th AML directive addresses this challenge and calls for increased collaboration between EU member-states to follow prosecutions across borders.
How to Adapt
As with any regulatory change, reviewing your AML routines is a must. To start with, ask yourself the question: Does my company’s AML/CTF processes reflect the demands of the new directive? Usually, the demands of a new directive will lead to comprehensive changes in local AML regulations and starting the process of adapting early will make the transition easier on your company. It’s still unknown when the 6th directive will be implemented in the Nordics, and when local AML regulations will change according to the 6th directive. The course of action varies based on EU membership and local factors.
Read more about our Client Lifecycle Management solution to see how we help obliged entities to adapt to today’s and tomorrow’s AML and CTF regulation. Or get in touch directly!