In January 2020, the EU issued the Fifth Money Laundering Directive to increase transparency in the fight against fraud, money laundering and cybercrime.

5AMLD expanded customer control of customers, introduced domestic and PEP, expanded the establishment of centralized registrars for real ownership and expanded AML control to most subsidiaries outside the EU.

On this topic: New EU anti-money laundering laws could disrupt the crypto industry

In December 2020, the updated directive on money laundering, known as 6AMLD, will enter into force globally, and any organization operating in the EU will have to comply with the new rules. You will find a detailed guide here that describes everything you need to know about the new routing.

Why is this changing?
The next European Union AMLD – the sixth since 1990 – will be transposed into national law by 3 December 2020. Those who are not members of the EU must put their activities in place by 3 June 2021.

The renewed AMLD, created in the wake of a series of major European banking scandals that raised questions about the effectiveness of the EU’s anti-money laundering approach, aims to improve the effectiveness of the fight against cybercrime and terrorist financing. Regulators and governments are regularly looking for ways to protect customers, and more and more rules are being introduced in the financial sector to prevent fraud, money laundering and cybercrime.

6 The AMLD program is likely to be part of the EU’s increasingly stringent approach to money laundering, and other changes are likely to occur in the coming years. This may include the EU Money Laundering Agency, which can monitor compliance directly at the institutional level. Businesses must be prepared for further change by having flexible and efficient processes that can respond to the changing environment; Having flexible AML systems is the best way to prepare.

What has changed?
In many ways, the 6AMLD is a natural development of previous AMLDs that provide unexpected loopholes, but it has also been shaped by a number of recent releases. Recent banking scandals in the EU have increased the need for more convincing incentives to target money laundering requirements in the private sector.

In addition, a wide range of criminal activities, in addition to basic food and human trafficking and weapons, have begun to generate large income streams for serious organized criminal groups, including environmental crime, wild crime and cybercrime. All of these areas must be considered and placed in the context of the detailed 6 AMLD content. But what will the new directive really do?

Here are some key points:

It will provide clearer definitions of the crimes and punishments imposed on them.
The criminal liability of legal entities and companies will be extended with more severe penalties.
Companies will be required to cooperate with each other to prosecute offenses against money laundering.
It will be necessary to protect customers from cybercrime and combat terrorist financing.
Fighting cybercrime to eliminate money laundering.
Virtual currencies pose new risks and challenges in combating money laundering.
One of the goals of 6AMLD is to list 22 major money laundering crimes, with a clear definition of each specific crime. For existing organized companies, the changes are in three areas: cybercrime, cooperation and criminal liability.

Cybercrime has never been mentioned in any previous AMLD, so it is very important for the business. This is one of the main goals to reduce the number of crimes committed on the Internet. The fact that cybercrime is at the center of organizational attention enables companies to effectively identify and suppress potential money laundering activity.
As part of this new update, companies will also be required to cooperate with each other in criminal prosecution for money laundering. This means that if a crime occurs between two companies, they must now work together to identify the perpetrator and prosecute them in a simple way.
For the first time, companies or “legal entities” can be held accountable for crimes. This means that if a significant person in your business – classified as a “legal entity” – fails to prevent criminal activity, that person and your action may be punished.
What does 6AMLD mean?
The changes made by 6AMLD effectively mean that companies will have fewer legal excuses if they turn out to even inadvertently allow money laundering.

Source: CoinTelegraph