Proposal for a directive on the mechanisms to be put in place by the Member States for the prevention of the use of the financial system for the purposes of money laundering or terrorist financing and repealing Directive (EU) 2015/849
In “An Economy that Works for People”
On 20 July 2021, the Commission adopted an anti-money laundering and countering the financing of terrorism (AML/CFT) legislative package, including a proposal for a sixth AML/CFT directive.
This sixth Directive on AML/CFT (“AMLD6”) will replace the existing Directive 2015/849/EU (the fourth AML directive, as amended by Directive 2018/843, the fifth AML directive).
AMLD6 contains provisions that are not appropriate for a Regulation and require national transposition, such as rules concerning national supervisors and Financial Intelligence Units in Member States.
Parliament has shown its support to the Commission’s plan to overhaul the current AML/CFT legislative structure. In response to the Commission’s 2020 Action Plan, Parliament passed a resolution on 10 July 2020, calling for a strengthening of Union rules in AML/CFT and welcoming plans to overhaul the EU AML/CFT institutional set-up.
The European Data Protection Supervisor adopted its opinion on the Commission's Legislative Package on AML of which the proposal for a Directive forms part on 22 September 2021. The EESC adopted its opinion on 8 December 2021.
The proposal has been assigned to ECON and LIBE as the committees jointly responsible, with rapporteurs appointed on 25 November 2021. They are Ludek Niedermayer of EPP for ECON and Paul Tang of S&D for LIBE. JURI has decided not to give an opinion on the file.
The co-rapporteurs published their report on 23 May 2022. It states that Parliament regrets that EU standards have not been transposed in time by Member States nor properly applied at national level. It notes that discrepancies in the implementation of previous anti-money laundering directives have also seriously undermined the effectiveness of the framework. Among the proposals, the co-rapporteurs suggest that more stringent requirements should be put in place, in particular with regard to the verification of data and the use of technology for this purpose. They also want registries to be able to sanction inaccuracies and inconsistencies. The report recommends that public access to certain information on beneficial ownership of trusts and similar legal arrangements should no longer be restricted. The report also introduces amendments to the chapter governing the functioning of Financial Intelligence Units (FIUs), in order to promote access to information by FIUs and the exchange of information between them, making the most of technological advances while preserving fundamental rights.
On 2 June LIBE and ECON voted to accept the report on the proposal for a directive on the prevention of the use of the financial system for the purpose of money laundering or terrorist financing. The co-rapporteurs’ proposal to create a register of beneficial owners via the BORIS interconnection system was particularly appreciated by the parliamentarians. The idea of creating a national register for high-value assets, such as yachts and luxury cars, was also welcomed, although MEPs stated that the proposal should be balanced and respect data protection.
MEPs also insisted on improving the exchange of financial information and cooperation between financial units and stressed the importance of coherence between this package and the regulation of the AMLA, the new European anti-money laundering authority. The deadline for the receipt of amendments to the proposal was given as 16 June.
- European Parliament Legislative Observatory, Prevention of the use of the financial system for the purposes of money laundering or terrorist financing: mechanisms to be put in place by the Member States, 2021/0250(COD)
- European Commission, Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the mechanisms to be put in place by the Member States for the prevention of the use of the financial system for the purposes of money laundering or terrorist financing and repealing Directive (EU) 2015/849 COM/2021/423
- European Parliament, Resolution of 10 July 2020 on a comprehensive Union policy on preventing money laundering and terrorist financing – the Commission’s Action Plan and other recent developments (2020/2686(RSP)
- The European Data Protection Supervisor, Summary of the Opinion of the European Data Protection Supervisor on the anti-money laundering and countering the financing of terrorism (AML/CFT) package of legislative proposals
- EESC, Economic and Monetary Union and Economic and Social Cohesion, Opinion on the Anti-Money Laundering Legislative Package, EESC-2021-02524-AS
- European Parliament, Draft report on the proposal for a directive of the European Parliament and of the Council on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing: mechanisms to be put in place by the Member States
(COM(2021)0423 – C9-0342/2021 – 2021/0250(COD))
Author: Ann Neville, Members' Research Service, email@example.com