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

Summary:

Legislative initiative tabled by the European Commission on 20 July 2021, 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. 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. 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 draft law delivers on some of the pillars structuring that framework.

The 2019 reports highlighted the need for the combination of harmonised rules via an AML/CFT Regulation and stronger rules on the national AML/CFT systems through an AML/CFT Directive. All rules that apply to the private sector have been transferred to a proposal for an AML/CFT Regulation. However, in recognition of the need for flexibility for Member States, the organisation of the institutional AML/CFT system at national level to this proposal for a Directive. The draft law does not simply transfer provisions

The draft law aims to repeal Directive (EU) 2015/849. It does not simply transfer provisions from the existing Directive; a number of changes of substance are made in order to bring about a greater level of convergence in the practices of supervisors and Financial Intelligence Units (FIUs) and in relation to cooperation among competent authorities.

This initiative was tabled 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).

• Primary Source

Official

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

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

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