Publication Of The EU AML/CFT Legislative Package In The EU's Official Journal

On 19^th June 2024, the EU has published the AML/CFT legislative package in its Official Journal, comprising of the following legislative texts:

1. Regulation (EU) 2024/1624 – AML/CFT Regulation ("AMLR")

The AMLR will enter into force twenty (20) days following its publication in the Official Journal, i.e., 9^th July 2024 and will officially apply three (3) years after coming into force, i.e., 10^th July 2027. However, AMLR provisions relating to football agents, and professional football clubs (relating to specific transactions) deemed as subject persons, will apply five (5) years after coming into force, i.e., 10^th July 2029.

2. Regulation (EU) 2024/1620 – AMLA Regulation ("AMLAR")

The AMLAR establishes the Anti-Money Laundering Authority and will enter into force seven (7) days following its publication in the Official Journal, i.e., 26^th June 2024, and will officially apply from 1 July 2025. However, certain articles within AMLAR will apply from the same day of entering into force, i.e., 26^th June 2024.

3. Directive (EU) 2024/1640 – 6^th Anti-Money Laundering Directive ("AMLD6")

The AMLD6 will enter into force twenty (20) days following its publication in the Official Journal, i.e., 9^th July 2024, whereby EU Member States are required to transpose the provisions included in the AMLD6 under national law by 10^th July 2027, upon which the 4^th Anti-Money Laundering Directive – Directive (EU) 2015/849, will be repealed. However, it is worth mentioning that:

• the provisions under Article 74 relating to the central registers of beneficial ownership of corporates and trusts must be transposed by 10^th July 2025;
• the provisions under Articles 11, 12, 13, and 15 pertaining to beneficial owner registers must be transposed by 10^th July 2026; and
• the provisions under Article 18 relating to access to real estate information must be transposed by 10^th July 2029.

Way Forward

The abovementioned legislative texts modify the operational regime for obliged entities within the EU (including subject persons) by harmonizing AML/CFT rules within the EU, including the establishment of a new supervisory authority (AMLA), and setting up of new due diligence requirements within the context of AML and CFT. As noted above, the new imposed requirements will come into force gradually, and therefore subject persons are encouraged to be acquainted with the new requirements and ensure that their internal policies, procedures, systems and controls are in line with the AMLR.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.