New Amendments to Anti-Money Laundering Legislation

The EU Council and the European Parliament have reached an agreement on a new package of amendments to anti-money laundering legislation.

Let’s examine the key elements of the agreement, which should lead to amendments to the AMLD and also define the activities of the future regulator, AMLA:

Reopening of Beneficial Ownership Registers

Members of the public with a legitimate interest, including the press and non-profit organizations, will be able to access registers of beneficial owners of companies.

In November 2022, we reported on the decision of the EU Court, which led to the restriction of the Anti-Money Laundering Directive legislation provision guaranteeing public access to information about beneficial owners of companies. It is known that Cyprus, Malta, and the Netherlands consistently deny access. It is now emphasized that legitimate interest should be applied without discrimination based on citizenship, country of residence, or establishment. The “ownership” threshold will be set at 25%.

Risk Assessment

The European Commission will conduct a risk assessment of money laundering and terrorist financing at the EU level and prepare recommendations for member states on measures they should use when conducting risk assessments at the national level. AMLA will implement a similar model of interaction between the center and member states.

Expansion of Accountable Entities

Sellers of luxury cars, planes, and yachts, as well as works of art, will become accountable entities. Other sectors to which obligations for proper customer verification and reporting will be extended include sellers of luxury items such as precious metals, gemstones, and watches.

Professional football clubs and agents will also become accountable entities, but member states will have the option to exclude them from the list if they pose a low money laundering risk. These rules for football clubs and agents will only come into effect five years after entry into force, unlike three years for other entities.

Virtual Asset Service Providers (VASPs)

All VASPs will be required to conduct proper customer verification. The threshold at which VASPs must apply KYC measures is transactions of €1000 or more.

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