6AMLD will differ from 5AMLD in several ways. One of the main differences is that 6AMLD defines the criminal offences that are to be considered "predicate offences” with regard to money laundering .
Additionally, 6AMLD lays down minimum rules concerning the definition of criminal offences and sanctions in the area of money laundering .
By clarifying and harmonising these definitions and rules, 6AMLD aims to improve cooperation between EU member states and enhance the overall effectiveness of anti-money laundering efforts .
Furthermore, 6AMLD expands the list of predicate offences, including cybercrime and environmental crimes .
The European Union's Sixth Anti-Money Laundering Directive (6AMLD) came into effect on June 3, 2021, to strengthen and harmonise the region's regulatory responses to the risks of money laundering and terrorism financing.
As part of this directive, EU member-states are required to implement the legislation and ensure their financial institutions comply with the new regulations.
6AMLD reflects shifting global financial risks and introduces new anti-money laundering (AML) and counter-financing of terrorism (CFT) measures. Compliance officers must understand the changes in their organisation's regulatory landscape and manage the new responsibilities it brings.
Regulatory Harmonization 6AMLD aims to create a unified definition of money laundering by providing a list of 22 predicate offences, including tax evasion, insider trading, drug trafficking, and human trafficking. The list also covers two new offences: cybercrime and environmental crime.
Regulatory Scope The directive broadens the definition of money laundering to include aiders and abettors of the crime. Anyone involved in money laundering activities, including attempting or encouraging others to launder money, is now liable.
Criminal Liability Criminal liability under 6AMLD is expanded to legal persons, which means organizations can be held accountable for money laundering offences committed by their employees. Penalties for non compliance may include supervision orders and operational bans.
Money Laundering Punishments Minimum prison sentences for money laundering offences under 6AMLD have increased to four years. Additional penalties, such as fines and restrictions from accessing EU public funding programs, can also be imposed.
Dual Criminality 6AMLD aims to address money laundering activities that span international borders. Member states are required to cooperate and share information to facilitate prosecutions for dual-criminality money laundering.
Compliance officers should adapt to 6AMLD by taking the following actions:
Ensuring organization-wide understanding of the new definition of money laundering and the 22 predicate offences.
Reviewing and adjusting criminal liability policies.
Adapting risk assessment procedures to align with the new risk landscape.
Providing training for compliance (https://www.grand.io/) employees to meet their new obligations.
Implementing suitable technology solutions to ensure ongoing compliance with 6AMLD.
Overall, adjustments to the predicate offences, criminal liability, and risk landscape necessitate that all banks and financial service providers in the EU ensure they are compliant with 6AMLD.
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