Regulatory Framework

From 10 July 2027, all rules applicable to the private sector will be set out in Regulation (EU) 2024/1624, which is directly applicable, while Directive (EU) 2024/1640 addresses the organisation of competent national authorities in the field of anti-money laundering and counter-terrorist financing (AML/CFT).

The regulation comprehensively harmonises AML rules for the first time across the entire EU, thereby closing loopholes that facilitate money laundering.

It extends AML obligations to new entities, including:

• The majority of the crypto-asset sector,
• Luxury goods traders,
• Football clubs and agents.

The regulation also introduces stricter due diligence requirements, regulates beneficial ownership, and sets a €10,000 cash payment limit, among other measures.

The directive enhances the organisation of national AML systems by establishing clear rules on cooperation between Financial Intelligence Units (FIUs) and supervisory authorities.

Regulation (EU) 2024/1620 establishes the European Anti-Money Laundering and Counter-Terrorist Financing Authority (AMLA), which will exercise direct supervisory powers over selected high-risk financial entities.

Given the cross-border nature of financial crime, the new authority will strengthen the effectiveness of the AML/CFT framework by creating an integrated mechanism with national supervisors to ensure compliance with AML/CFT obligations in the financial sector. AMLA will also play a supporting role in the non-financial sector and coordinate and assist FIUs.

In addition to its supervisory powers, the Authority may impose financial penalties on selected entities in cases of serious, systematic, or repeated breaches of directly applicable requirements to ensure compliance with the framework.

Directive (EU) 2024/1654 requires EU Member States to provide access to information from centralised bank account registries—containing data on the identity of account holders and their locations—through a single access point. This directive ensures that national law enforcement authorities will have access to these registries via the single access point. It also standardises bank statement formats. Direct access and the use of harmonised formats by banks constitute a key instrument in combating criminal offences and in efforts to locate and confiscate the proceeds of crime.

Source: Council of the European Union