Finance Monthly November 2019 Edition

THE FIGHT AGAINST NEW MONEY LAUNDERING SCHEMES Zac Cohen, General Manager at Trulioo, looks at the 6th Anti-Money Laundering Directive and the things that business leaders and risk and compliance directors need to do to ensure they are compliant with the new regulation. Zac Cohen, General Manager of Trulioo Non-stop regulation to tackle emerging money laundering threats For senior executives within regulated industries, yet another article exploring the next round of regulation to tackle international money laundering is likely to have them scratching their heads or maybe raising their eyebrows. But, whilst many firms are still bedding down new systems and processes to comply with the 5th EU Anti-Money Laundering Directive (5AMLD), additional rules to counter the growing global threat of money laundering were introduced by the European Parliament at the end of last year. The 6th Anti-Money Laundering Directive (6AMLD) will be transposed into member states’ national laws by December 2020, and organisations within all member states will be required to implement the new regulations by 3rd June 2021. Importantly, the regulations will cover all regulated entities across the EU, plus any UK organisations that are operating within the EU after Brexit, whatever the outcome of current political negotiations. Brexit does not represent a way around 6AMLD; any UK business wanting to operate within the EU need to comply with the new rules. What’s more, there’s a definite likelihood that non-EU states around the world will replicate the content and spirit of 6AMLD within their own regulatory frameworks over the next few years. Much like we are seeing with the General Data Protection Regulation (GDPR), the EU’s recently implemented regulatory framework around data security and privacy, other economies wishing to trade with the EU are developing their own versions of these EU- mandated rules in order to reduce barriers to global trade and drive consistency. So, whilst business leaders and risk and compliance directors across a range of sectors – from financial services to payments, online marketplaces and gaming – may be starting to feel as though they are caught in an AML compliance hamster-wheel, they must get to 20 www.finance-monthly.com FINANCE & BUSINESS - ANTI-MONEY LAUNDERING