The 6th Money Laundering Directive (6AMLD) will be implemented on the 3rd June 2021. 6AMLD will provide greater detail to the EU States on the emerging money laundering threats by expanding on the regulatory requirements introduced in 5AMLD.
It is important that relevant companies familiarize themselves with the compliance processes involved in 6AMLD.
6AMLD will provide a harmonized definition of money laundering across the EU, hoping to close loopholes in countries with weak domestic legislation. This includes an expansion on predicate offenses that precede money laundering. The 22 predicate offenses for money laundering now include cybercrime, environmental crime and tax crime, a reflection demonstrating the changing landscape of money laundering in the EU.
To prepare for the Directive’s implementation, institutions should make themselves familiar with the changes it introduces.
6AMLD will expand the categorization of the money laundering act to “aiding and abetting”. This will make it easier to catch accomplices in the money laundering process.
6AMLD will hold legal persons (companies and/or partnerships) liable in situations where those persons failed to prevent the illegal activity, in addition to the direct actors of the illegal activity. Even if the illicit funds generated from the illegal activity cannot be identified, a legal person(s) can still be convicted.
Another area that 6AMLD is set to change is the length of imprisonment. The duration of imprisonment is currently set to 1 year, but 6AMLD will dictate that all EU States set a minimum imprisonment sentence of 4 years. This can also be combined with sanctions and fines, including a temporary or permanent shut-down of a business.