Should you be taking action regarding 6AMLD legislation?

Should you be taking action regarding 6AMLD legislation?

Although the UK is not incorporating 6AMLD into UK legislation, UK institutions that are regulated and operate in Europe should check procedures to ensure they remain compliant. June 2021 is not that far away.

Offences now include Cybercrime, Insider Trading, Human Trafficking, and aiding and abetting the offence of Money Laundering as well as others.

As ever, training and systems are all important and it is essential therefore that financial service organisations ensure adequate training and system support is provided to improve their AML programmes to enable successful detection of suspicious activities. Manual procedures should also be re-evaluated.

In terms of liability, no longer will individuals only be prosecuted for money laundering offences but also any legal persons involved, and this can include companies, accountants, lawyers etc. Both individuals and firms can both be prosecuted for money laundering crimes simultaneously or separately.

Additionally, the new directive takes into account acts of omission. This being the case, when someone in key, senior positions, such as a director, has failed to ensure that proper compliance controls are in place to identify and prevent a crime from occurring, they could also be liable to prosecution.

6AMLD seeks to provide for more cooperation, close potential weaknesses in domestic regimes whilst also providing the tools for tougher penalties. Ultimately it’s about encouraging financial institutions to do more in the AML/CTF battle.

If you would like to discuss how our award-winning Anti Money Laundering Software and counterterrorist financing solution, AMLtrac, may help your institution then feel free to drop me a line and I will get in touch.

NOTE…

The contents of this article are not intended to be advice or guidance on the law and your obligations under it. E&OE. Please always seek the appropriate legal advice.

Find details on the act here.