New EU anti-money laundering rules: What to know

The European Union this year finalized significant revisions to its rules countering money laundering and terrorist financing (the AML Package).

In addition to strengthening the existing regulatory framework, the AML Package also establish a new European AML supervisory authority, the Anti Money Laundering Agency (AMLA), based in Frankfurt that will commence its operations on July 1, 2025.

In this article, we briefly discuss the AML Package, its key implications, and how entities subject to the rules (that is, obliged entities) can best prepare.

What is the AML Package?

The AML Package consists of four legislative acts, summarized below.

1. The Regulation on Money Transfer Information

Regulation (EU) 2023/1113 of May 31, 2023 covers information accompanying transfers of funds and certain cryptocurrencies, which will apply directly in all Member States beginning December 30, 2024. By that date, the European Banking Authority shall issue guidelines specifying restrictive measures to implement the transfers of funds and crypto assets.

2. The AMLA Regulation

Regulation (EU) 2024/1620 of the European Parliament and of the Council of May 31, 2024 (AMLAR) established a new agency starting its operation to combat and prevent money laundering and terrorist financing, which will apply as of July 1, 2024.

3. The AML Regulation

Regulation (EU) 2024/1624 of the European Parliament and of the Council of May 31, 2024 (AMLR) covers the prevention of the use of the financial system for the purpose of money laundering or terrorist financing, which will apply directly in the Member States beginning July 10, 2027.

4. The AML Directive

Directive (EU) 2024/1640 of the European Parliament and of the Council of May 31, 2024 (AMLD6) covers the mechanisms that Member States should put in place to prevent the use of the financial system for the purpose of money laundering or terrorist financing, amending the Whistleblower Protection Directive (EU) 2019/1937 and repealing the Directive (EU) 2015/849 (AMLD4), which Member States will have to transpose into national legislation by July 10, 2027 (subject to several exceptions).

What are the key changes and implications of the AML Package?

The key changes and implications are the following:

1. The AML Package overhauls the current regime under the AMLD4. On the one hand, the AMLD6 and the AMLR significantly expand the regime with extensions regarding obliged entities (prominently, football clubs) and new obligations in areas such as transparency, access to registers, supervision, and enforcement powers. On the other hand, they redraw the boundaries of its European dimension by harmonizing key rules through the use of regulations.

2. As of July 1, 2025, the AMLA will have direct and indirect supervisory powers over high-risk obliged entities in the financial sector. The AMLA will also be able to intervene directly and take immediate measures, as a last resort, in the event of acute danger. With respect to the nonfinancial sector, the AMLA will play a supporting role, coordinating national authorities and assisting the existing financial intelligence units (FIUs). This likely promises stricter supervision and faster, more targeted handling of suspicious transaction reports.

3. The AMLA is also empowered to issue regulations and implement technical standards, guidelines, and recommendations addressed to obliged entities, AML/CFT supervisors, or FIUs. This will likely further harmonize anti-money laundering practices across the EU and provide further clarity for obliged entities.

4. As the above regulations become immediately effective, the Member States are required to transpose the AMLD6 into national laws, as indicated above. In general, transposition comes with the risk of incomplete or limited harmonization, as implementing laws may differ. However, the AML Package established safeguards (such as the competence of the AMLA to set standards) for a more uniform approach than in the past. This measure will likely benefit internationally operating companies, as more uniform national laws will allow for aligned processes across the EU.

5. A stricter regulations regime will apply to the transfer of crypto assets, providing more transparency of funds and preventing concealment. Obligations will apply to transactions exceeding the value of EUR1,000.

6. Also, cash transactions exceeding the amount of EUR10,000 will be banned and the receiving entities will be obliged to identify their business partner in case of cash transactions in the range between EUR3,000 and EUR10,000.

7. Football clubs and agents will be newly obliged entities with an extended deadline for setting up the relevant structures to be compliant by July 10, 2029. However, there will also be exemptions, eg, for traders that do not sell luxury goods.

8. In light of the clearly manifested legislative intent of the AML Package to significantly increase the fight against money laundering and terrorist financing, and the start of operations of the AMLA in July 2025, stricter control of existing AML obligations is expected quite soon – even before the AMLD6 comes into force. Obliged entities are therefore encouraged to make use of the time given and review existing AML processes.

How can obliged entities best prepare today?

Obliged entities may consider taking the following actions to best prepare for compliance with the changes of the AML Package.

The AMLD6 and the AMLR already provide entities with a good overview of the final rules in each Member State. As a regulation, the AMLR lays down rules that are directly applicable in Member States. While the AMLD6 – being a directive – will have to be transposed into national law by each Member State, it clearly sets out minimum standards for rules that have to be observed in its transposition. In other words, obliged entities can already start preparing for compliance on the basis of these acts. This represents an opportunity to achieve efficiency gains.

However, final clarity will only be provided once the technical standards have been finalized and the Member States have adopted their laws transposing the AMLD6. It may take some time before these laws are adopted, given that the Member States have been granted an implementation period until July 10, 2027. In some cases, the adoption may not take place until the next political cycle.