New rules, new risks and opportunities
On Jan. 18, 2024, the European Union reached and political agreement on a new package of anti-money laundering measures. The goal? To combat money laundering and terrorist financing more effectively and unify supervision across the EU. That may sound abstract, but the implications for your organization could be profound - especially if you are covered by AML.
What exactly will change? And how can you best prepare?
Why this stricter regulation?
The reason for this change in the law is clear: currently each EU country works with its own rules, guidelines and enforcement. This creates differences in the approach to money laundering risks, and that makes it easier for malicious persons to exploit weaknesses.
The new package - part of the broader EU Anti-Money Laundering (AML) Package - aims to change this. With the biggest change being the creation of the AMLA (Anti-Money Laundering Authority), a central European regulator that may be active from 2027.
What does this mean for your organization?
De kern van de verandering: uniforme regels binnen de EU. Wat kan dit mogelijk betekenen voor u?
- Stricter customer due diligence (CDD/KYC), even for seemingly low risks. In the new proposal, risk-based approaches are further tightened, and there will be minimum standards for customer due diligence that are the same for all EU countries. This means that member states will have less room to apply “light CDD” for apparently low risks.
- More transparency about UBOs. The UBO register will be strengthened. The EU stresses the importance of accurate, up-to-date and accessible UBO information. It also makes it easier for authorities to share data on UBOs in different countries.
- Mandatory monitoring of crypto transactions. Crypto service providers are covered by the new AML regulation and will be required to perform CDD, monitoring of transactions and mandatory reporting of suspicious activity.
- An EU central registry for bank accounts. The EU is introducing a central mechanism to access national bank account registers. This will be managed at the EU level and make it easier for FIUs and competent authorities to quickly retrieve information.
- Supervision from Brussels, if your organization is identified as “high risk. AMLA will have direct supervision of selected high-risk obliged entities, especially those operating across borders. So companies can come under direct AMLA supervision if they meet certain risk criteria.
If you operate internationally or operate in sectors such as finance, real estate or crypto services, you may well soon fall under the direct supervision of the AMLA. This brings more responsibility, stricter reporting requirements and possibly even additional audits.
You are already working under the AML; are you therefore ready for these rules?
The Netherlands leads the way when it comes to anti-money laundering legislation. FIU-Netherlands, the supervisory role of DNB, and the relatively strict requirements already in place mean that many organizations are already accustomed to a high level of compliance.
Still, there are important differences. These new EU rules are regulations - meaning they come into effect immediately, without the need for national legislation. Differences in interpretation fall away, and the scope for “practical” application of rules diminishes.
In addition, supervision is likely to become more intensive and technical. Data collection, processing and reporting will play a greater role. Your organization must be ready for this - not only on paper, but also in practice.
For whom is this change most relevant?
The impact will be most noticeable for:
- Financial institutions with branches in multiple EU countries.
- Crypto providers that are already running into regulatory limits.
- Real estate companies investing or managing funds internationally.
- Notaries, lawyers and trust companies that facilitate cross-border structures.
To some extent this is still speculative, but the AMLA will have explicit authority to place institutions with “significant cross-border risk” under direct supervision. If your business model falls under this, it is advisable to start preparing now.
How do you prepare for this new reality?
- Review your risk assessments: are your analyses and scenarios still up to date?
- Provide technology that moves with you: think of monitoring tools and smart reports.
- Document processes carefully: especially with external audits in mind.
- Invest in knowledge and training..
- Stay abreast of EU developments: through the EBA, European Commission, FIU-the Netherlands and industry associations.
Change as an opportunity
Controls are becoming more intensive, expectations higher and room for maneuver smaller. But there is also an opportunity: if you invest in a future-proof compliance framework, you build trust - with regulators, customers and business partners.
Organizations that proactively move with this new legislation strengthen their position in the marketplace. Not only to be compliant, but also to stand out.
The new rules are expected to be formally adopted during 2025/2026, followed by a transition period. The AMLA will then become operational in 2027 at the earliest.
SCOPE FinTech Solutions is closely following these developments. Would you like to know what these changes mean specifically for your organization? Or are you curious about how your current systems relate to the new EU standards?
Please contact us. We are happy to think along with you.
