If your company operates within a member state of the European Union, you are already experienced in navigating the regulations implemented under the European Anti-Money Laundering directive (AMLD) guidance. The European Parliament regularly issues these directives to keep abreast of emerging money laundering and terrorism financing threats, but 6AMLD—published in June of 2021—is the most ambitious set of directives yet. Implementing these recommendations will effectively overhaul the EU’s current anti-money laundering (AML) and combating the financing of terrorism (CFT) framework.
Why does this matter more than ever for your company?
6AMLD adds “aiding and abetting” to the list of offences that can be prosecuted under AML laws. Furthermore, legal persons such as companies and partnerships can now be held criminally liable if they fail to prevent legal activity.
It is now more important than ever for you to perform due diligence and carefully vet every individual business relationship and transaction. This means assessing a customer or supplier or transaction’s inherent risk before engaging in it. This also necessitates constant, ongoing monitoring to catch any signs of suspicious activity, including transactions that don’t match the established risk profile. If you suspect the risk associated with this business partner has changed at any point, it may be prudent to examine the source of any funds being exchanged.
Doing such thorough diligence is necessary but can also be expensive and time-consuming. Emerging technologies like Trustnet.Trade® can help you quickly access the information you need to ensure you are not inadvertently helping fund criminal activities through your business partnerships.