Directive (EU) 2024/1640 on the mechanisms to be put in place by Member States for the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, amending Directive(EU) 2019/1937, and amending and repealing Directive (EU) 2015/849

Summary:

Directive (EU) 2024/1640 - adopted by the co-legislators on 31 May 2024 - setting out the mechanisms to be put in place by the Member States for the prevention of the use of the financial system for the purposes of money laundering or terrorist financing. It introduces amendments to Directive (EU) 2019/1937 and repeals Directive (EU) 2015/849. This also known as the sixth Directive on AML/CFT (AMLD 6). This is a text with EEA relevance.

Further information:

In July 2019, the European Commission unveiled a set of reports aimed at informing European and national authorities on how to better address money laundering and terrorist financing risks. Notably, these highlighted the for a combination of harmonised rules via an AML/CFT Regulation and stronger rules on the national AML/CFT systems through an AML/CFT Directive. The EU Security Union Strategy 2020-2025 highlighted the importance of enhancing the EU's framework for for anti-money laundering and countering terrorist financing. As a follow-up, the Commission published in May 2020 an Action Plan setting out a common comprehensive framework on addressing such issues.

This Directive lays down rules concerning the following:

• measures applicable to sectors exposed to money laundering and terrorist financing, at national level;
• requirements in relation to registration of, identification of, and checks on, senior management and beneficial owners of obliged entities;
• identification of money laundering and terrorist financing risks at EU and Member State level;
• set-up of and access of beneficial ownership and bank account registers and access to real estate information;
• responsibilities and tasks of the Financial Intelligence Units (FIUs);
• responsibilities and tasks of bodies involved in the supervision of obliged entities;
• cooperation between competent authorities and cooperation with authorities covered by other EU legal acts.

The draft law was adopted by the European Commission on 20 July 2021, as part of a legislative package focusing on anti-money laundering (AML) and countering the financing of terrorism (CFT). The Council adopted its general approach to the proposal on 7 December 2022. The plenary of the European Parliament endorsed a negotiating position on 19 April 2023. An informal agreement between the co-legislators on a compromise text for this file was reached on 18 January 2024. This was formally endorsed by Parliament on 24 April and by the Council on 30 May. The Act was signed by the co-legislators on 31 May 2024 and published in the Official Journal on 19 June 2024.

Official

EUR-LEX: COM(2021)423: Proposal for a Directive on the mechanisms to be put in place by the Member States for the prevention of the use of the financial system for the purposes of money laundering or terrorist financing https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=COM:2021:423:FIN

EUR-LEX: SWD(2021)190: Staff Working Document accompanying the Proposal - Impact Assessment https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=SWD:2021:190:FIN

EUR-LEX: SWD(2021)191: Staff Working Document accompanying the Proposal - Executive Summary of the Impact Assessment https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=SWD:2021:191:FIN

Publications Office of the EU: EU Law Tracker: Proposal for a Directive on the mechanisms to be put in place by the Member States for the prevention of the use of the financial system for the purposes of money laundering or terrorist financing https://law-tracker.europa.eu/procedure/2021_250?lang=en

European Parliament: Legislative Observatory: Procedure File for Proposal on Prevention of the use of the financial system for the purposes of money laundering or terrorist financing: mechanisms to be put in place by the Member States (2021/0250(COD)) https://oeil.secure.europarl.europa.eu/oeil/popups/ficheprocedure.do?lang=en&reference=2021/0250(COD)

European Parliament: Legislative Train Schedule: Proposal for a directive on the mechanisms to be put in place by the Member States for the prevention of the use of the financial system for the purposes of money laundering or terrorist financing and repealing Directive (EU) 2015/849 https://www.europarl.europa.eu/legislative-train/theme-an-economy-that-works-for-people/file-6th-directive-on-amlcft-(amld6)

European Commission: Financial Stability, Financial Services & Capital Markets Union: Anti-money laundering and countering the financing of terrorism at EU level https://finance.ec.europa.eu/financial-crime/anti-money-laundering-and-countering-financing-terrorism-eu-level_en

General Secretariat of the Council (EU): Policies: Fight against money laundering and terrorist financing in the EU https://www.consilium.europa.eu/en/policies/fight-against-terrorism/fight-against-terrorist-financing/

European Commission: Publications: Anti-money laundering and countering the financing of terrorism legislative package https://finance.ec.europa.eu/publications/anti-money-laundering-and-countering-financing-terrorism-legislative-package_en

European Commission: Press Release, 20/07/2021: Beating financial crime: Commission overhauls anti-money laundering and countering the financing of terrorism rules https://ec.europa.eu/commission/presscorner/detail/en/ip_21_3690

European Commission: Questions and Answers: Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) (20 July 2021) https://ec.europa.eu/commission/presscorner/detail/en/qanda_21_3689

Council of the European Union: Press Release, 17/12/2022: Anti-money laundering: Council agrees its position on a strengthened rulebook https://www.consilium.europa.eu/en/press/press-releases/2022/12/07/anti-money-laundering-council-agrees-its-position-on-a-strengthened-rulebook/

European Parliament: Press Release, 28/03/2023: New EU measures against money laundering and terrorist financing https://www.europarl.europa.eu/news/en/press-room/20230327IPR78511/

Council of the European Union: Press Release, 18/01/2024: Anti-money laundering: Council and Parliament strike deal on stricter rules https://www.consilium.europa.eu/en/press/press-releases/2024/01/18/anti-money-laundering-council-and-parliament-strike-deal-on-stricter-rules/

European Parliament: Press Release, 18/01/2024: Deal on a single rulebook against money laundering and terrorist financing https://www.europarl.europa.eu/news/en/press-room/20240115IPR16801/

Renew Europe EP Group: Newsroom, 18/01/2024: Anti-money laundering package: deal strengthens the common framework to crackdown on dirty money in Europe https://www.reneweuropegroup.eu/news/2024-01-18/anti-money-laundering-directive-amld-deal-strengthens-the-common-framework-to-crackdown-on-dirty-money-in-europe

European Parliament: Press Release, 24/04/2024: New EU rules to combat money-laundering adopted https://www.europarl.europa.eu/news/en/press-room/20240419IPR20586/

European Commission: Remarks by Commissioner McGuinness at the European Parliament plenary debate on Anti-Money Laundering (24 April 2024) https://ec.europa.eu/commission/presscorner/detail/en/speech_24_2289

Council of the European Union: Press Release, 30/05/2024: Anti-money laundering: Council adopts package of rules https://www.consilium.europa.eu/en/press/press-releases/2024/05/30/anti-money-laundering-council-adopts-package-of-rules/

European Banking Authority (EBA): Press Release, 26/06/2024: The EBA welcomes the entry into force of the framework establishing the anti-money laundering and countering the financing of terrorism authority https://www.eba.europa.eu/publications-and-media/press-releases/eba-welcomes-entry-force-framework-establishing-anti-money-laundering-and-countering-financing

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Commentary and Analysis

Mayer Brown: Insights, 22/01/2024: EU institutions reach political agreements on anti-money laundering and countering the financing of terrorism package https://www.mayerbrown.com/en/insights/publications/2024/01/eu-institutions-reach-political-agreements-on-anti-money-laundering-and-countering-the-financing-of-terrorism-package

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