Banking news: EU AML package approved

On 19 March 2024, the EU’s Anti-Money-Laundering (AML) package was passed, following a joint session of the European Parliament (EP) Economic Affairs and Justice Committee. The package was launched in 2021 and comprises measures to combat money laundering more effectively in the EU by greater coordination of efforts. There are two main elements. Firstly, a Single AML rulebook will be created, to harmonise AML regulations across the EU. This will replace existing national rules and so eliminate variation. Secondly an EU Anti-Money Laundering Authority (AMLA) will be set up, to act as both a regulator and a supervisor.

The new coordinated rulebook will make compliance simpler for firms, especially those which operate cross border within the EU, saving administration. It should also make it easier for the authorities to detect money laundering and work together with their counterparts in other EU countries. The new AML rulebook will also toughen standards in many areas, including customer due diligence requirements and beneficial ownership rules. It also expands the range of entities required to verify customer information and report suspicious activities. This will all help efforts to combat money laundering, within the framework of easier administration for many businesses because of the greater coordination of rules across the EU.

The EU Anti-Money Laundering Authority (AMLA) will specify the details of the new AML rulebook via technical standards and guidelines. As a supervisor, AMLA will develop a common supervisory methodology for national AML authorities, lead thematic reviews on specific topics and directly supervise the 40 firms deemed to pose the greatest AML risks. AMLA will be based in Frankfurt.

The package still has to be approved by the full EP and signed off by EU governments. It is expected to become law in summer 2024. AMLA will then have 3 years to deliver its technical standards and guidelines before the single AML rulebook takes effect (in 2027). In parallel, AMLA will develop common supervisory standards and build up its own capabilities, to begin direct supervision in 2027 or 2028.

KPMG is building up a new AMLA Office, based in Frankfurt, as a centre of expertise on the new authority. The AMLA Office at KPMG is a dedicated team of experts committed to supporting financial institutions in navigating the evolving landscape of anti-money laundering regulations and practices. Our team brings together the collective knowledge and experience of KPMG’s international network of professionals. As AMLA begins operations, the KPMG AMLA Office will provide regular updates and analysis of AMLA’s rulemaking and the development of its supervisory policies and practices. Please visit the dedicated homepage here for all the latest insights and perspectives.

KPMG in Romania provides a wide range of Advisory services to banks and financial institutions. Our consultants have detailed knowledge of EU legislation and its application in Romania, and can give expert guidance on compliance with AML legislation, as well as support in numerous other areas. Please get in touch if you would like further information about our services.