In December 2020, the EU’s Sixth Anti-Money Laundering Directive (6AMLD) will come into effect, resulting in even more stringent AML regulations for businesses operating within the EU. The 6AMLD will be transposed into national laws in December, and those outside the EU will have until June 2021 to establish their processes. Now is the time to understand what 6AMLD means for your organization and be proactive about the new regulations.  

What Exactly is 6AMLD?

The new AMLD (the sixth one since 1990) is one part of an increasingly strict EU approach to AML. It was established to protect customers by more effectively countering cybercrime and the financing of terrorism. The updated AMLD focuses on cybercrime, cooperation, and criminal liability. 

According to Cointelegraph, these are the 6AMLD’s key highlights. 

  1. “It will provide clearer definitions of crime and their penalties.
  2. It will extend criminal liability to legal persons and companies, with tougher punishments.
  3. Businesses will be required to cooperate with one another in the prosecution of money laundering-related crimes.
  4. They will be required to protect customers from cybercrime and tackle terrorism finance.
  5. Fighting cybercrime to root out money laundering.
  6. Virtual currencies present new risks and challenges for combating money laundering.”

How Will 6AMLD Affect Businesses? 

At its core, the 6AMLD focuses on accountability and criminality, creating more significant penalties for financial institutions. For instance, the minimum prison term for money laundering offenses will go from one year to at least four years. Therefore, finding and implementing the best AML programs is crucial at this time. Businesses should make the necessary updates and consider investing in automated AML technology to expand their scope and support more identity verification checks than previously needed. 

Vital4 will help you navigate 6AMLD by providing the key data that is required to meet your compliance obligations. Vital4’s platform is fully automated, using machine learning, AI, sentiment analysis, and other state-of-the-art systems to find blind spots that are often missed. 

Click here to learn more about Vital4’s AML/KYC Data Solutions and how they can support your organization’s compliance efforts when it comes to 6AMLD and beyond.