AI Summary of Directive (EU) 2024/1640 of the European Parliament and of the Council of 31 May 2024 on the mechanisms to be put in place by Member States for the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, amending Directive(EU) 2019/1937, and amending and repealing Directive (EU) 2015/849 (Text with EEA relevance) (AMLD6)
The Directive (EU) 2024/1640 establishes a robust framework for Member States to combat money laundering and terrorist financing, revising earlier legislation to enhance regulatory effectiveness. It mandates clearer operational protocols for financial and non-financial supervisors, requirements for beneficiary ownership disclosure, and improved cooperation between national authorities to ensure consistent oversight and rapid identification of risks across the Union.
Furthermore, it outlines obligations for the establishment of central registers and automated data retrieval systems to facilitate timely access to ownership details for competent authorities and obliged entities. By specifying thresholds for sanctioning breaches, the Directive emphasises a risk-based supervisory approach aimed at safeguarding the integrity of the financial system while ensuring that personal data protection is upheld throughout the process.
