New EU rules on financial crimes

by Damiana Tortonese

On 30 May 2024, the Council of the European Union, through a press release, announced the adoption of a package of new anti-money laundering rules known as the 'AML Package' (Anti-Money Laundering Package), intended to strengthen the regulatory framework against money laundering and terrorist financing. This package includes new directives and regulations that aim to standardise and improve money laundering and terrorist financing prevention practices within the Member States. The anti-money laundering rules are extended to new entities, such as virtual currency and cryptocurrency service providers, luxury goods traders and sporting goods companies and agents.

Main Novelties of the AML Package

The new legislative package consists of four main pillars:

  1. AMLA (Anti-Money Laundering Authority) Regulation: Establishment of a centralised authority at European level with powers to supervise and coordinate anti-money laundering activities. 
  2. Registration and Supervision Regime Regulation: Introduction of new registration and supervision requirements for financial and non-financial entities.
  3. Anti-Money Laundering Directive (AMLD): Update of the existing directive with new provisions on cooperation between national authorities and introduction of stricter obligations for companies.
  4. Regulation on cash transaction limits: Imposition of a ceiling of EUR 10,000 for cash transactions in order to reduce the risk of money laundering.

The regulations are pending publication in the Official Journal of the EU. The AML regulation will apply three years after entry into force. Member States will have two years to transpose certain parts of the AML Directive and three years to transpose other parts. The AMLA will be based in Frankfurt and will start operating in mid-2025.

Impact on Italian law

The adoption of the AML Package entails significant changes in the Italian legal framework, especially with regard to the administrative liability of entities, regulated by Legislative Decree 231/2001.

The main expected impacts include:

  1. Increased due diligence requirements: Entities will have to strengthen their due diligence procedures with respect to customers and business partners. Stricter checks will be required to verify the identity of customers and the origin of funds.
  2. Implementation of Organisational Models: Entities affected by the new legislation will have to update their Organisational, Management And Control Models to include the new AML provisions.
  3. Increased Penalties: The package provides for harsher penalties for non-compliance with anti-money laundering regulations. In Italy, this will result in stiffer penalties if the necessary measures are not taken to prevent money laundering.
  4. Cross-border cooperation: The new rules promote greater cooperation and exchange of information between national authorities and AMLA. Italian entities will therefore have to be ready to comply with requests for information and cooperation from other European jurisdictions.
  5. Controls and Inspections: The AMLA will have the power to carry out direct controls and inspections at institutions. This implies increased vigilance and the need to keep up-to-date and complete records of their operations.

Conclusions

The adoption of the AML Package represents an important step towards greater harmonisation and strengthening of anti-money laundering measures in Europe. For Italian companies, it may entail the need to implement and adapt their Organisation, Management and Control Models. However, these measures are essential to ensure the transparency and legality of financial transactions, reducing the risks associated with money laundering and terrorist financing.