A Guide to Anti-Money Laundering for Crypto Firms

5AMLD - 5th Anti-Money Laundering Directive: Prepaid Cards

AML Compliance Prepaid Cards & Wallets Knowledge & Training

After 4MLD cut the monthly transaction limit on prepaid cards to €250 (a measure to combat terrorist financing), 5MLD – 5th EU Anti-Money Laundering Directive sets an even lower limit of €150 – this limit also applies to the amount which can be stored on the cards. Similarly, online transaction limits are reduced to €50. Christopher Baines the Head of Compliance at Pockit said: “the directive is definitely a step in the right direction, it reduces the number of options for criminals”.  5AMLD Prepaid Cards EMoney PaymentsPrepaid cards issued outside the EU are now prohibited unless they were issued in a territory enforcing legislation equivalent to the EU’s AML/CFT and KYC standards. Obliged entities must review the way they handle prepaid card payments, and put mechanisms in place to identify (and refuse) transactions using cards from non-EU sources – which may involve significant revision of existing systems and procedures.

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Originally published September 6, 2018, updated May 5, 2022

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