This post has already been read 419 times!
6AMLD -6th Anti Money Laundering Directive
Hot on the heels of the 5th the EU is preparing the industry for the introduction of 6AMLD- 6th Anti Money Laundering Directive.
But what does it mean, who does it impact and what is it focusing on? read on for more…
6AMLD is designed to harmonise the law and definitions across the EU and tighten regulations around jurisdiction and business. It aims to improve inter-jurisdictional cooperation. It will replace 5AMLD. It becomes law on the 3rd December 2020 and must be implemented in EU jurisdictions by the 3rd June 2021.
The main implications are;
- The number of predicate offences is widening. To see a full list go here.
- A predicate offence must be imprisonable.
- There will be no need to prove the predicate offence to prove the laundering of criminal property.
- However, there must be an intent and knowledge the money was being laundered.
- This can be shown by the asset value being disproportionate to the suspected launderers income.
- The laundering must be timely to the criminal predicate offence suspected.
- A court can base it’s decision on objective and factual evidence.
- AMLD will address Virtual Currency
- Punishments will be more severe for suspects working in a public role.
- Punishments will be more severe for Suspects ‘self-laundering’.
Contact us for a full briefing on 6AMLD or read on…
- The EU are pushing to include ‘reckless’ and ‘negligent’ actions to be punishable criminally. The directive says a jurisdiction ‘may’ enforce this type of action/inaction. For a criminal definition of these go here.
- Evidence of communications over the internet will not be hampered by the servers being outside the jurisdiction of the EU. It will be the location of the sending device that will be culpable.
- EU states must have a minimum sentence of 4 years (as a maximum).
- Confiscations can take place for a person’s estate post mortem.
- The ‘tools’ and investigative processes used by the police and enforcement agencies are set to get more effective. This is required set against the need to ensure human rights, the fact it is mentioned means the police are likely to use more technical means to track suspects physically and digitally.
- For a list of criminal definitions and all relevant EU articles go here.
- Aiding, abetting, inciting or attempting Money laundering will be offences. See a definition for these concepts, here.
This directive is raising the bar in Europe. It addresses the difficulties getting states to share information on investigations, evidence and suspects and streamlines predicate offences. It allows states to prosecute for money laundering when a predicate offence has not been proven. This is a big hurdle to ML currently and a huge step forward.
In terms of financial, legal and consultative business 6AMLD increases risk. It is vital officers within institutes act diligently, in particular with CDD and EDD with the spectre of ‘negligence and ‘reckless’ actions or inactions causing a criminal investigation into the entity or natural person.
If you need help training your staff in the implications of 6AMLD, send us a message. We can train in in person, online or via webinar.