Global Focus on Financial Crime: Emerging Regulatory Trends in the EU

In the European Union (EU), financial institutions are facing stricter anti-money laundering (AML) and counter-terrorist financing (CFT) regulations. The shift is driven by new legislation, including the 6th and 7th Anti-Money Laundering Directives (6AMLD and 7AMLD), and the evolving approach to sanctions compliance, particularly in light of ongoing geopolitical tensions.

The 6th and 7th Anti-Money Laundering Directives

The 6AMLD, which came into effect in 2020, was designed to harmonize the definition of money laundering across EU member states. It extended criminal liability to legal entities, meaning businesses could now face criminal sanctions for money laundering offenses. Additionally, the 7AMLD, which is still under discussion, is poised to bring broader regulations and increased scrutiny to several key sectors, such as:

• Expansion of entity scope: 7AMLD is expected to extend AML requirements to crypto service providers, luxury goods dealers, and crowdfunding platforms.
• Increased penalties: Firms could face fines up to 10% of annual turnover for non-compliance, a significant increase from previous penalties.
• Real-time monitoring: The focus will intensify on real-time transaction monitoring, particularly for high-risk customers and politically exposed persons (PEPs).

These changes are forcing firms to rethink their compliance programs, with heightened attention on continuous monitoring and reporting, especially for transactions involving high-risk individuals or entities.

Stricter sanctions compliance in the EU

The EU has also been responding to geopolitical tensions by increasing its focus on sanctions compliance. The Russia-Ukraine conflict has resulted in an unprecedented wave of sanctions, and firms are under growing pressure to ensure they adhere to evolving sanctions lists.

As sanctions lists grow and change in response to current events, financial institutions must be proactive in updating their systems to ensure compliance. Real-time screening and monitoring will be critical to avoiding violations and protecting both reputations and bottom lines.

Compliance technology and proactive practices

To stay ahead of evolving regulations, firms in the EU should invest in state-of-the-art compliance technologies, including real-time transaction monitoring and AI-driven fraud detection tools. These technologies not only help firms quickly identify and address risks, but also provide the agility needed to navigate the growing complexity of compliance requirements.

In addition to technology, cross-border collaboration will be crucial as regulators continue to emphasize transparency and information sharing across member states. Firms that prioritize both cutting-edge tools and effective international cooperation will be best positioned to manage risks and remain compliant in an increasingly interconnected regulatory environment.

Watch our webcast

Our recent webcast explored trends in financial crime across the EU, UK, U.S., and UAE. Watch the webcast on demand to examine key regional regulatory priorities and learn actionable insights to strengthen your AML and CFT programs.

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How we help

At ACA, we provide industry-leading AML services designed to help firms achieve and maintain compliance with global regulatory requirements.

• Manage AML risks: Our services include risk assessments and ongoing monitoring, enabling your firm to detect potential money-laundering activities and ensure compliance with FCA, SEC, DFSA, and FSRA standards.
• Maintain audit-readiness: Stay prepared for inspections with regulator-approved documentation and comprehensive audit support, ensuring compliance with AML and CFT obligations.
• Streamline compliance processes: Ease the burden on in-house teams with our optimized AML workflows, technology, and outsourced support.

Whether you are looking to launch, grow, or protect your firm, we can provide tailored AML solutions that help you manage risks, maintain compliance, and build a robust compliance framework.

Contact us today to see how our AML expertise can enhance your compliance and bolster resilience.