AML and CFT Package

Following the adoption by the European Parliament (EP) and the Council of the legislative package to strengthen the fight against money laundering (AML) and terrorist financing (CFT), it has been published in the Official Journal of the European Union (OJEU). This package aims to improve the detection of suspicious transactions and activities and to close loopholes that allow the laundering of illicit proceeds or the financing of terrorist activities through the financial system.

AML and CFT Package

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Executive summary

The new legislative package on AML and CFT aims to improve the detection of suspicious transactions and activities and to close loopholes that allow the laundering of illicit proceeds or the financing of terrorist activities. The implementation of the package runs from 30 December 2024 to July 2027. Member States have three years to transpose the Directives.

Main content

• Regulation establishing a new EU AML and CFT Authority (AMLA). Creates the AMLA, a mechanism with national supervisors to ensure compliance with AML and CFT, increase supervisory and investigative powers, resolve disagreements with binding effect, support the non-financial sector and coordinate financial intelligence units (FIUs), as well as impose monetary sanctions for serious non-compliance.
• Regulation on the prevention of the use of the financial system for AML and CFT. Comprehensively harmonises AML rules across the EU, applying to new obliged entities such as the crypto sector, luxury goods traders, football clubs and agents. It establishes stricter due diligence requirements, regulates beneficial ownership and limits cash payments to €10.000.
• Regulation on transfers of funds to trace crypto-assets. Establishes rules on the information required on money and crypto-asset transfers to prevent AML and CFT. Excludes certain services and specific transfers, and allows exceptions for small domestic transfers under certain conditions.
• Directive on AML/CFT prevention mechanisms. Improves the organisation of national systems for combating AML by establishing clear rules on cooperation between FIUs, national bodies and supervisors.
• Directive on access by competent authorities to centralized bank account registers. Requires Member States to provide information from centralised bank account registers through a single access point. Provides access to FIUs and national enforcement authorities, harmonising the format of bank statements to trace and confiscate the proceeds of crime.

Download the technical note about the AML and CFT Package.