AML6 is the latest EU standard for the prevention of money laundering and terrorist financing. This new anti-money laundering regulation presents several advances compared to its predecessor, the still in force AML5. As of June 3, 2021, all organizations that have not adapted to the new requirements will be sanctioned.
The AML6 is included in Directive 2018/1973 of the European Union (EU) and stands out for the increase in control and the toughening of sanctions for financial institutions. Especially those that do not comply with the necessary anti-money laundering security requirements. This new law seeks to unify all European anti-money laundering regulations. As well as, better define the responsibility of the obligated subjects, especially in Know-Your-Customer (KYC) and Know-Your-Business (KYB) processes.
The main changes included in AML6 are:
- Banks and other financial entities are responsible when they do not carry out sufficient supervision and control. Making crimes such as money laundering possible. Hence the importance of having highly secure online onboarding processes for opening accounts.
- Jurisdiction is expanded and sanctions are raised, citing jurisprudence worth more than 100 million dollars.
- Other consequences for financial institutions that are found guilty would be: temporary or permanent closures, loss of the right to receive state aid, judicial surveillance and even imprisonment of the responsible professionals.