The 6th Anti-Money Laundering Directive (6AMLD) is a European Union regulation designed to strengthen the fight against money laundering and terrorist financing. It came into effect on 3 December 2020, with member states required to implement it by 3 June 2021.
6AMLD builds on earlier AML directives by expanding the list of predicate offences, harmonising definitions of money laundering across the EU, and introducing tougher penalties for non-compliance. It also increases liability for individuals and companies, ensuring that both can be held accountable for AML breaches.
The European Commission and European Banking Authority (EBA) provide guidance on how 6AMLD is applied across the EU.
Definition Of 6AMLD
6AMLD (6th Anti-Money Laundering Directive) is an EU regulation that strengthens AML laws by:
Expanding the definition of money laundering offences to include aiding, abetting, inciting, and attempting.
Extending criminal liability to legal entities (e.g., companies, not just individuals).
Increasing the minimum prison sentence for money laundering to four years.
Harmonising AML rules across all EU member states.
Expanding the list of predicate offences to 22, including cybercrime and environmental crime.
Why 6AMLD Matters For Compliance
The directive significantly raises the compliance bar for financial institutions and businesses operating in the EU.
Expanded Predicate Offences
Firms must detect and prevent laundering linked to a broader set of underlying crimes.
Corporate Liability
Companies can be held criminally liable for failing to prevent money laundering.
Tougher Penalties
Sanctions now include minimum four-year prison sentences and higher fines.
Harmonised Definitions
Consistent definitions of money laundering across the EU make compliance clearer and enforcement stronger.
Challenges Of 6AMLD Compliance
Adapting to 6AMLD requires major changes to compliance frameworks.
Monitoring New Predicate Offences
Cybercrime, tax crimes, and environmental offences must now be monitored.
Higher Burden On Companies
Institutions must prove they took proactive steps to prevent financial crime.
Increased Enforcement Risk
More consistent definitions across the EU make enforcement more straightforward for regulators.
Operational Complexity
Updating monitoring systems and training staff to align with 6AMLD is resource-intensive.
Best Practices For Meeting 6AMLD Requirements
Financial institutions can meet 6AMLD obligations by:
Updating monitoring rules to capture all 22 predicate offences.
Enhancing due diligence to detect corporate liability risks.
Integrating real-time sanctions and transaction screening.
Documenting compliance processes for audit readiness.
Providing training on new legal requirements.
The Future Beyond 6AMLD
6AMLD is part of the EU’s wider AML transformation, which includes the creation of the EU Anti-Money Laundering Authority (AMLA).
Looking forward:
Stricter Oversight: AMLA will directly supervise high-risk institutions.
Single EU Rulebook: Consistent AML standards across all member states.
Integration With Technology: AI and RegTech will play larger roles in compliance.
Global Coordination: EU AML rules will align more closely with FATF recommendations.
Prepare Your Compliance Framework For 6AMLD And Beyond
The 6th Anti-Money Laundering Directive sets higher standards for compliance across Europe. Institutions must strengthen monitoring, screening, and governance to meet its obligations.
Facctum solutions; FacctShield, Payment Screening, FacctView, Customer Screening, FacctList, Watchlist Management, and Alert Adjudication, help firms implement effective compliance frameworks for 6AMLD and prepare for future EU regulations.
Contact Us Today To Strengthen Your 6AMLD Compliance
