ANTI-MONEY LAUNDERING IN THE EUROPEAN UNION: NEW MAJOR REGULATORY SHIFTS AND THEIR IMPACT

Abstract The paper analyses the new set of rules published in the European Union Official Journal on 19 June 2024 and the way it will impact the existing anti-money laundering mechanisms applicable to the EU citizens and institutions. The AML Regulation, effective from 10 July 2027, encompasses new obliged entities subject to AML rules like professional football clubs and agents, crypto assets’ service providers and luxury goods traders, enhanced due diligence measures regarding cross-border correspondent relationships or in relation to certain high net-worth individuals as well as a limit of 10,000 euros for cash payments subject to some exemptions. This set of rules also comprises a new regulation establishing the Anti-Money Laundering Authority, a centralised body, based in Frankfurt, tasked with overseeing and coordinating AML activities across Member States. It will directly supervise high-risk entities such as banks and asset managers. The new AML Directive introduces major modifications to the organisation of the existing AML systems at the national level namely in the areas of beneficial ownership registers and the responsibilities and collaboration between FIUs and competent authorities. By enhancing regulatory consistency and cooperation, the new legislation aims to create a more resilient and secure financial environment across the European Union. Key words: Anti-Money laundering (AML), AML authority (AMLA), AML regulation, high-risk entities supervision, beneficial ownership registers.