EU Anti-Money Laundering Regulation

EU Anti-Money Laundering Regulation

• 15 January 2025
• Regulatory Compliance and Legislation
• South African Accounting Academy

Summary:

Accountancy Europe has published a factsheet which summarises the key provisions of the EU’s new Anti-Money Laundering Regulation (AMLR) and highlights their implications for accountants, auditors, and tax advisors.

Article:

The EU’s new Anti-Money Laundering Regulation (AMLR) is a major milestone in the fight against money laundering (ML) and terrorist financing (TF).

The AMLR will substantially impact accountants, auditors and tax advisors – and all other so-called obliged entities – daily operations and compliance obligations in the areas of customer due diligence, beneficial ownership transparency, compliance with targeted financial sanctions, suspicious activity reporting, and record retention.

Accountants, auditors, and tax advisors play a crucial role in keeping European citizens safe from money laundering and terrorist financing.

In May 2024, the EU adopted an ambitious package of anti-money laundering (AML) reforms. The new legislation imposes strict AML obligations on accountants, auditors, tax advisors and other so-called ‘obliged entities’, significantly affecting their daily operations and compliance responsibilities.

This factsheet highlights the key changes introduced by the new AML Regulation and emphasises the importance of early preparation for these upcoming changes. It is the first in a series of papers and will be followed by factsheets on key issues for the accountancy profession arising from the 6th AML Directive and Regulation establishing a new AML Authority (AMLA).

The new requirements will be implemented gradually, providing time for organisations to adjust their internal procedures to align with the new regulatory environment. In the coming years, AMLA will release specialised guidance and standards for both financial and non-financial sectors to enhance clarity and provide further detail into various aspects of the AMLR.

Click here to download the 19-page Fact Sheet:

https://accountancyeurope.eu/wp-content/uploads/2024/12/241218_AML_Regulation_Factsheet_AccountancyEurope.pdf

Relevance to Auditors, Independent Reviewers & Accountants:

• AML legislation is very important legislation that your clients must comply with, and which you must assess compliance with.  If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (NOn-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.
• Auditors, Independent Reviewers and Accountants should be aware of the latest amendment bills on Anti-Money Laundering and the Combating of the Financing of Terrorism.
• An awareness of publications issued by regulators, such as the FIC, is vital to remain informed – even on the international front.
• As an accountable institution, a business owner and individual, you need to be aware of developments in relevant legislation updates in this regard – even on the international front.

Relevance to Your Clients:

• An accountable institution, as well as an entity (company or close corporation), has a duty to comply with the FICA, otherwise they could be held liable.
• Accountable institutions should be aware of the latest legislation on Anti-Money Laundering and the Combating of the Financing of Terrorism.
• An awareness of publications issued by regulators, such as the FIC, is vital to remain informed.
• As an accountable institution, a business owner and individual, you need to be aware of developments in respect of our country’s greylisting, as well as the relevant legislation updates in this regard.

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