On the 20th July 2021 the European Commission published a 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 which is part of a legislative package on AML which the European Commission published on the 20th of July. The package consists of a proposal for a Regulation which creates a new EU AML Authority (AMLA); the 6th Directive on AML/CFT (AMLD 6); a new regulation on AML/CFT, which covers the areas of customer due diligence and beneficial ownership and constitutes a complement to the 6th AMLD proposal in the review of the 5th AMLD; a proposal for a revision of the 2015 Regulation on Transfers of Funds.
The directive does not only amend the provisions of the 5th AMLD but adds a number of changes of substance in order to bring about a greater level of convergence in the practices of supervisors and FIUs and in relation to cooperation among competent authorities.
To avoid that the administrative set-up of FIUs impacts their analytical functions nor their capacity to cooperate with their counterparts, the FIUs powers and tasks are clarified, as well as the minimum set of information that FIUs should be able to access. The proposal builds on the current AML/CFT framework requiring Member States to create national AML/CFT supervisors to supervise Obliged Entities, including the tasks powers and responsibilities of such supervisors, and cooperation between them and FIUs and between them and third country supervisors.
Further, measures are built upon by obliging Member States to provide for administrative measures and sanctions to be available for serious repeated or systematic breaches by obliged entities of key requirements of the framework, with specifications on the minimum and maximum amounts of pecuniary sanctions, and providing for publication of sanctions imposed, whistle-blower protection and exchange of information on sanctions.