The Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA) stands as a pivotal institution in the EU’s reformed AML/CTF framework.

Its core responsibilities include:

• Direct supervision: starting in 2028, AMLA will directly supervise a select group of high-risk financial entities operating across multiple EU member states, identified through a harmonised risk assessment methodology.
• Indirect supervision and co-ordination: AMLA will indirectly supervise other financial and non-financial sectors by coordinating national authorities and establishing common standards and practices, fostering a unified supervisory culture.
• FIU support: AMLA will support Financial Intelligence Units (FIUs) by facilitating joint analyses of cross-border suspicious activities, managing the FIU.net information system and promoting the exchange of best practices.

Importantly, AMLA will not replace national supervisors or FIUs. Instead, it will act as a central coordinating body to ensure the effective and consistent application of AML/CFT rules throughout the EU. 

Effective from July 2024, the Anti-Money Laundering Regulation (AMLR) marks a significant evolution in the EU's fight against financial crime. Replacing the previous directive-led approach, the AMLR is a directly applicable regulation, ensuring consistency across all EU member states.

Key impacts of the AMLR include:

• Applicability and scope: the new AMLR regulation will be directly applicable by all EU member states starting July 2027 (with some exceptions effective from July 2029), eliminating the need for separate national legislations and ensuring consistency. Additionally, the regulation expands its scope to include previously unregulated entities like crowdfunding platforms, football clubs and agents, and other high-risk sectors, broadening the scope of obliged entities.
• Harmonised CDD: the regulation standardises CDD requirements across all EU member states, ensuring a consistent approach to identifying and verifying customers. Upcoming regulatory and implementing technical standards will elaborate on the requirements in greater detail, while AMLA guidelines will ensure a shared understanding among all obliged entities. Standardised formats for reporting suspicious transactions and submitting information to beneficial ownership registers will further streamline AML efforts across the EU.
• Clarity on beneficial ownership: the definition and threshold for beneficial owners are harmonised across the EU. Now, individuals holding 25% or more (compared to the previous ‘more than 25%’) of shares, voting rights or control are considered beneficial owners.
• Enhanced due diligence (EDD): the AML regulation introduces EDD obligations to mitigate risks associated with high-risk customers and transactions, including those involving countries posing a threat to the EU. At the same time, Member States retain the flexibility to impose additional requirements beyond EU-wide measures if deemed necessary. Furthermore, the regulation broadens the definition of Politically Exposed Persons (PEPs) to include heads of regional and local authorities and family member now encompasses siblings, acknowledging the potential for financial crime risks within a wider family circle. Recognising the heightened risks often associated with significant wealth, the regulation also mandates enhanced scrutiny for high-net-worth individuals. This includes more rigorous and thorough checks on the origin of their funds and overall wealth.
• Cash payment limit: a maximum limit of €10,000 is set for cash payments across the EU. Member states can choose to implement lower thresholds based on their national risk assessments.

By harmonising rules on beneficial ownership and enhancing scrutiny of high-risk third countries, the AMLR, along with AMLA’s supervisory role, underscores the EU’s commitment to a robust and unified AML/CTF regime and emphasises the importance of transparency and compliance in safeguarding the EU’s financial system.

While the AMLR introduces directly applicable rules, AMLD6 focuses on the institutional AML/CFT framework, requiring transposition into national law. by July 10, 2027. Whilst the Directive's provisions have varying transposition deadlines depending on the specific issue, generally Member States must implement the Directive by 10 July 2027, at which point AMLD 4, as amended by AMLD 5, will be repealed.

Key aspects of AMLD6 include:

• Central beneficial ownership registers: AMLD6 introduces requirements for more robust registers for beneficial ownership, bank accounts, and real estate, facilitating information sharing and access for national authorities and other stakeholders. These registers must be verified for accuracy and interconnected across the EU and will be accessible to authorities, obliged entities, and individuals with legitimate interest, such as journalists and civil society organisations.
•  Strengthened FIU role: the directive empowers FIUs with greater access to information and enhanced analytical capabilities. This includes immediate access to financial, administrative and law enforcement data, the ability to suspend transactions, and improved collaboration through an upgraded FIU.net system.
• Risk-based supervision: AMLD6 requires supervisory authorities to adopt risk-based approach when overseeing obliged entities. This includes the power to impose sanctions and the obligation to report suspicious activities. Additionally, AMLD6 emphasises risk assessments at both EU and national levels, encouraging member states to mitigate identified risks actively.

Overall, AMLD6 aims to reinforce the EU's AML/CFT infrastructure by implementing harmonised mechanisms and enhancing cooperation among member states.

On 9 June 2023, the EU published the recast Wire Transfer Regulation II (WTR II), which came into effect on 30 December 2024. This regulation repeals the existing revised Wire Transfer Regulation and extends the travel rule to include transfers of crypto assets alongside traditional funds, ensuring comprehensive regulatory alignment across the EU.

In essence, WTR II mandates that information about the sender and receiver must accompany all transfers, whether they involve traditional funds or crypto assets. Crypto-Asset Service Providers (CASPs) must provide this information to national authorities to support Anti-Money Laundering (AML) and Counter the Financing of Terrorism (CFT) investigations. Exclusions apply for person-to-person transfers that don't involve a CASP and transfers between CASPs acting on their own behalf.

The regulation also imposes obligations on CASPs regarding self-hosted wallets and mandates compliance with Know Your Customer (KYC) processes, particularly for transactions exceeding EUR 1,000. The European Banking Authority (EBA) will provide guidance on implementation, including data retention requirements. 

While WTR II enhances oversight of financial transactions, challenges may arise in cross-border transactions when EU CASPs engage with non-EU entities lacking comparable AML/CFT measures.