6AMLD Money Laundering 22 Predicate Offenses

Blog / 6AMLD Money Laundering 22 Predicate Offenses

The Sixth Anti-Money Laundering Directive (6AMLD) of the European Union went into force for member countries on 3 December 2020 and must be implemented by financial organizations by 3 June 2021. Following on from the fifth anti-money laundering directive(5AMLD), which broadly strengthened existing Anti Money Laundering/Combating the Financing of Terrorism (AML/CFT) provisions, the sixth anti-money laundering directive seeks to strengthen financial companies and officials to do more in the battle against money laundering and terrorism financing by expanding the scope of existing law, defining certain regulatory details, and strengthening criminal sanctions across the EU.

By unifying the concept of money laundering throughout the EU, the EU's Sixth Money Laundering Directive would eliminate some gaps in member-state domestic legislation. 6AMLD focuses on 'predicate crimes': when it is implemented on 3 June 2021, 6AMLD will extend its list of money laundering predicate charges to better represent the current growing threat.

6AMLD: Increases the Number of Predicate Offenses

6AMLD replaced 5AMLD and became legislation in all member states on 3 December 2020 – and is implemented in those territories by June 2021. 

In all EU member states, 6AMLD specifies and standardizes 22 predicate crimes for money laundering. Because of the wide range of money laundering predicate crimes outlined in 6AMLD, financial institutions must modify their adverse media screening procedure to ensure they detect relevant breaking news items.

6AMLD Money Laundering Predicate Offenses Updated

Adverse media screening is a useful KYC tool, particularly given that the FATF guidelines say that financial institutions must "knowledge their client's reputation," which includes past criminal liabilities such as participation in money laundering investigations. Compliance with that directive requires unfavorable media screening, which typically entails time-consuming human inspections of large quantities of unsorted news items, blog pieces, and social media.

It is critical that any negative media monitoring technology employed is capable of recognizing media by particular categories. Minimizing false positives, reduces noise and keeps notifications focused on what's important.

Screening adverse media helps businesses to better prioritize their task and assess the degree of risk connected with each customer. Negative news classification may help improve automated screening, allowing searches to be customized to client profiles and regulatory settingsç

Getting Ready for 6AMLD

During the implementation phase, obliged companies should work to better grasp the additional regulatory scope that 6AMLD has brought, including new predicate crimes that must be monitored and the new risk environment in which they will be operating. Firms need to evaluate their technology implementation to fulfill their new Transaction Monitoring and Screening requirements and manage their AML resources and educate compliance personnel. If you want to comply with the 22 Predicate Offenses listed under the 6AMLD, you can contact us and request demo details about our products.

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