The 6th AMLD is on the horizon! The directive is aimed to clearly define the criminal activities which constitute predicate offences for money laundering whilst also imposing greater obligations on firms.

Some of the key changes include:

  • Defining the 22-predicate money laundering offences and harmonising the criminal nature of money laundering across the EU:
    • Participation in an organised crime group or racketeering;
    • Terrorism;
    • Human trafficking and migrant smuggling;
    • Sexual exploitation;
    • Illicit trafficking in narcotics and psychotropic substances;
    • Illegal arms trafficking;
    • Trafficking in stolen goods;
    • Corruption;
    • Fraud;
    • Counterfeiting currency;
    • Counterfeiting and piracy of products;
    • Environmental crime;
    • Murder and grievous bodily harm;
    • Kidnapping and hostage taking;
    • Robbery and Theft;
    • Smuggling;
    • Tax crime relating to both direct and indirect taxes;
    • Extortion;
    • Forgery;
    • Piracy;
    • Cybercrime;
    • Insider trading and market manipulation.
  • Staff Anti-money laundering training on recognising all predicated offences;
  • Aiding and attempting to commit money laundering will be an offence;
  • Providing a comprehensive definition of money laundering;
  • Imposing a minimum 5-year prison sentence for serious offences;
  • Criminal liability will be extended to legal persons;
  • Aggravating circumstances can be applied for convictions relating to serious offences such as corruption and human trafficking;
  • Bosses may be personally liable for corporate crimes under new ‘Failure to supervise’ offences;
  • Penalties for money laundering offences could include prohibition from public welfare benefits, bans from conducting business or forced wind-up of businesses through which the offences were committed.

It is therefore crucial that organisations are well equipped to undertake necessary checks and have a thorough understanding of their obligations in preventing and reporting any potential money laundering offences.

https://www.ellulschranz.com/expertise/corporate-services/due-diligence

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