AML Package, a complicated piece of legislation designed to tighten EU anti-money laundering and countering the funding of terrorism rules, was recently submitted by the European Commission. The proposed improvements aim to enhance procedures for identifying suspicious transactions and suspicious activity. They will bring about a number of significant changes and practical repercussions.

What Is the EU AML Package?

The European Commission unveiled a comprehensive set of laws on July 20, 2021, to enhance the EU’s anti-money laundering and countering the funding of terrorism regulations.

The suggested reforms are largely intended to strengthen procedures for identifying suspicious behavior and transactions , to close loopholes that criminals use to support terrorism or launder illegal funds via the financial system.

What Legal Acts Are Included in the EU AML Package?

• The “Regulation regarding AMLA” plan would create the Authority for Anti-Money Laundering and Countering Terrorism Financing.
• The proposed regulation to stop the use of the financial system to finance terrorism and money laundering (also known as the “AML Regulation”)
• The new IV Directive 2015/849/EU will be replaced by the VI Directive on AML/CFT, sometimes known as the “6th AMLD.”
• Modification of Regulation 2015/847 of May 20, 2015, Concerning Information Accompanying Fund Transfers

What Does the EU AML Package entail?

The establishment of a new Authority for Anti-Money Laundering and Countering the Financing of Terrorism is one of the most significant developments that the AML Package brings about (“AMLA”). The authority will centrally coordinate the actions of the national authorities, helping to create a consistent and uniform standard of business conduct. Additionally, it will support certain national authorities in their analysis, improving the gathering of financial intelligence, a crucial resource for law enforcement authorities.

In addition, the EU AML Package involves the creation of the Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA), whose responsibilities include regulating coordination between the pertinent national supervisory authorities. Until recently, the European Banking Authority served in this capacity. However, the European Parliament came to the conclusion that more financial and human resources should be dedicated to the fight against money laundering and the financing of terrorism and it made the decision to establish an authority that will coordinate AML/CFT supervision at the European level.