AML Regulation: uniform rules and stricter supervision in the EU
The European Union is tightening and further harmonising its rules against money laundering and the financing of terrorism (AML/CFT). The new Anti-Money Laundering (AML) Regulation introduces a uniform and directly applicable framework for all member states. Companies and the entire sectors will therefore have to prepare for new obligations, enhanced supervision, and a greater emphasis on transparency.
Main objectives and importance of the regulation
The AML Regulation removes the previous inconsistency in the approach of member states to AML/CFT issues. Thanks to the direct effect of the regulation, the new rules will be applied uniformly across the European Union without the need for their transposition into national laws. The regulation also provides for the creation of a new Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA), which we reported on in our article here, and which will also ensure a uniform interpretation of the regulation.
The scope of obliged persons extended
Compared to the current wording of the Czech AML Act, the scope of obliged persons will be extended to include:
- investment migration operators
- crowdfunding platform operators
- traders in cultural goods (including galleries)
- football agents and professional football clubs (in respect of transfers and financial flows).
The aim is also to cover previously less regulated high-risk environments that can be exploited for the laundering of proceeds of crime.
The conditions for performing client checks aligned
In general, obliged persons will have to carry out client checks when establishing business relationships, for transactions worth at least EUR 10,000, when suspecting money laundering or terrorist financing, when in doubt about the veracity or adequacy of client information, or when uncertain whether the person with whom they communicate is the client or a person authorised to act for the client.
What does this mean in practice?
The regulation is already in force, but most of the obligations will be directly effective from July 2027. For some football agents and clubs, the regulation will not be effective until 2029.
However, obliged persons should become familiar with the forthcoming changes as soon as possible so that they can consider them when planning work for next year when the AMLA issues their interpretations. Obliged persons should thus proceed with their gap analyses, reviews of internal AML processes, and adjustments of their documentation and methodologies to the new framework. Other companies as well as natural persons carrying out business activities should assess whether they fall into one of the categories of obliged persons.
We are closely monitoring the new regulation and will be happy to assist you in preparing for the new rules.