- 19/06/2024 Publication of Regulation (EU) 2024/1624 (AMLR)
- 10/07/2027 Regulation (EU) 2024/1624 (AMLR) becomes directly applicable
Regulation (EU) 2024/1624, also known as AMLR, or the Single Regulation, establishes uniform AML/CFT requirements that will be directly applicable in all Member States.
This regulation aims to eliminate regulatory disparities that could allow criminals to profit from loopholes in Europe's fragmented financial systems.
Scope
By the AMLR directly applicable in all Member States, without the need for national transposition from 10 July 2027.
Key contributions of AMLR
1. Broadening the scope of obliged entities
The AMLR widens the scope of application of obliged entities to include the crypto-asset service providers (Crypto Asset Service Providers – CASPs), crowdfunding platformscrowdfundingand other high-risk sectors.
2. Specifics relating to enhanced due diligence requirements
Enhanced vigilance measures will need to be implemented by the crypto-asset service providers (CASPs) for cross-border correspondent banking relationships.
3. Implementation of a limit and controls on cash payments
One Maximum limit of 10,000 euros for cash payments is set at the European Union level. Member States will have the flexibility to set a lower maximum limit if they deem it necessary, based on specific national risks.
4. Details concerning customer due diligence measures
To ensure that the risks of non-implementation or circumvention of targeted financial sanctions are properly mitigated, the Obligated entities must verify whether the client and/or beneficial owners are subject to targeted financial sanctions.
It should also be noted that, in the context of legal entities, natural and legal persons who control the legal entity or who hold more than 50 % of the ownership rights or the majority of the interests in that legal entity, either individually or collectively, must also be screened against targeted financial sanctions lists.
5. Details of Ultimate Beneficial Owners:
The The definition of beneficial ownership has been refined. to enhance transparency and prevent illicit financial activities.
The The concept remains fundamentally unchanged, the beneficial owners are the individuals who:
– Have, directly or indirectly, a holding in the entity; or
– Control, directly or indirectly, the entity or another legal entity, through shareholding or other means.
It has been clarified that control by other means must be identified independentlyand in parallel to, the existence of a holding or control through a holding.
The the threshold for determining a stake in a corporate entity has been set at 25 % or more of the shares, voting rights or other ownership interests in the entity, including rights to a share of profits, other internal resources, or liquidation balance. It was clarified that All shareholdings at each ownership level must be considered.
West Records of the actions taken to identify the beneficial owner must be kept. In the event that no beneficial owner can be identified, a statement must be provided explaining why it has not been possible to identify the beneficial owner(s).
The requirement to provide details of all natural persons holding the position of Chief Executive is no longer conceived as the identification of a beneficial owner but as a backup option.
Furthermore, stricter requirements have been provided for reporting discrepancies with the information contained in the beneficial ownership registers. Obligated entities must report any discrepancies they find between the information in the beneficial ownership register and the information they are required to collect under the AMLR. Discrepancies must be reported without undue delay and, in any event, within 14 calendar days of their detection.
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