European Commission 2020 Action Plan on AML/CTF and 2021 legislative package

The following Financial Services practice note provides comprehensive and up to date legal information covering:

  • European Commission 2020 Action Plan on AML/CTF and 2021 legislative package
  • European Commission Action Plan for a Comprehensive EU policy on AML/CTF
  • Background
  • Commission Action Plan
  • The proposed EU AML/CTF supervisory authority—AMLA
  • Role
  • Directly supervised financial institutions
  • Key dates
  • Governance, decision-making and staffing
  • Funding
  • More...

European Commission 2020 Action Plan on AML/CTF and 2021 legislative package

The European Commission Action Plan for a Comprehensive EU policy on Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) (Action Plan) provides for an overhaul of the European Union’s AML/CTF legal framework and regulatory requirements. In particular, it proposes:

  1. a single EU-level supervisory Anti-Money Laundering Authority (AMLA) which, among other things, will directly supervise cross-border financial entities from 2026

  2. a single EU AML/CTF Rulebook for which AMLA will create Regulatory Technical Standards (RTS)

  3. a unified AML/CTF regulatory framework which, among other things, harmonises customer due diligence (CDD) measures and beneficial ownership, resting on a directly applicable AML/CTF Regulation

  4. to fully apply EU AML/CTF rules to cryptocurrencies

This Practice Note provides an overview of the Action Plan, including the proposed single rulebook and AMLA. It also considers the Commission’s July 2021 proposed legislative package—the 6th Directive on AML/CTF, the Regulation on AML/CTF, the Regulation establishing AMLA, and the Recast EU Wire Transfer Regulation 2 (EU WTR2). The legislative proposals are open to feedback until 13 October 2021.

For further information on the EU AML/CTF regime, see Practice Note: Introduction to the EU AML/CTF legal and regulatory framework for financial services.

A tracker of UK, EU and supranational AML/CTF developments and dates for horizon scanning may be found in: AML/CTF legal and regulatory regimes for financial services firms—timeline.

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