Businesses at Risk Due to 6AMLD by the European Union
The European Union imposed the fifth anti-money laundering directive in January 2020, which enhanced customer due diligence checks and extended anti-money laundering (AML) checks to subsidiaries outside the European Union. Now, the EU has planned to introduce the sixth AMLD since 1990 on December 3, 2020. For states outside of the European have time until June 3, 2021, to streamline the processes accordingly.
The new directive aims to combat money laundering, terrorist financing, and cybercrimes in a better way. Government and other regulators are continuously finding better ways to secure customers. For the same reason, more and more regulations are being enforced across the globe. The 6AMLD is another step by the EU for a more stringent approach to AML. more changes are expected in the years ahead. The 6AMLD will address any unforeseen loopholes in anti-money laundering laws, and it will fight cybercrimes at the root to eradicate money laundering.
With the enforcement of 6AMLD, chances of providing any excuses for the money laundering activities will be nearly zero for the companies. However, businesses have sufficient time to prepare and streamline their processes as per the directive.
With newer regulations, companies must be looking forward to better KYC and AML verification because the volume of identity checks will be higher than before. The penalties for not complying with the regulations are significant and so is the need for better verification.