Everything you need to know about 6AMLD!
We talked about 5AMLD last year and the changes that were brought forward by this directive. Now after a few months, there have been more reforms to take place with respect to the AML sector from June 2021, when the 6AMLD comes into effect. Some of the changes that 6 AMLD brings about are significant in nature. Let’s take a look at them.
Harmonisation
This directive provides a harmonised definition and extended scope of the offence of money laundering. Crimes such as insider trading, environmental and cyber-crimes have also been added to the list of money laundering offences. Apart from this, offences such as aiding, abetment, incitement and attempt are also included which extends the liability of the crime from the person actually committing it to those who are complicit as well ensuring that every party involved would be liable for the financial crimes.
Stricter Punishments
The punishment for money laundering crimes have been increased from 1 year to 4 years. Apart from this, it is stated that the punishment will be enforced with sanctions, fines and discontinuing services. This definitely is a great step towards ensuring that criminals get harsher treatment for laundering money.
Penalising legal persons
The extent of convicting for committing illicit financial crimes has extended to legal persons, such as companies and organisations. This step would ensure that companies start focusing on compliance with regulations. The future of every company’s compliance function will definitely be stronger.
Member States collaboration
The directive encourages cooperation among member states while investigating and prosecuting money laundering offences committed by legal or natural persons, in the concerned member states, even if it is committed in a different jurisdiction. The country where the crime was committed, where it was carried out and the country where the culprit was eventually found, all should collaborate in the deliverance of justice.
Even though, the 6AMLD comes into effect next year, it would be essential and a remarkable way to improve our compliance function, be better prepared with due diligence measures and learn more about the new offences included in the directive. Definitely a step in the right direction. Here’s hoping that this directive manages to reduce and curb the different kinds of financial crimes that take place on a daily basis.
Please note that all opinions made on this blog should be treated as a guide and not legal advice.