In May 2024, the European Union adopted a comprehensive Anti-Money Laundering Regulation (AMLR) that directly impacts accountants, auditors, tax advisors, and other 'obliged entities' by imposing stricter compliance obligations.

Key Responsibilities Under the AMLR

• Customer Due Diligence (CDD): Accountants must implement enhanced CDD measures, including verifying client identities, assessing the purpose of business relationships, and monitoring transactions for suspicious activities.
• Beneficial Ownership Transparency: Professionals are required to identify and verify the ultimate beneficial owners of entities, ensuring accurate and up-to-date records to prevent the misuse of corporate structures for illicit purposes.
• Compliance with Financial Sanctions: There is an obligation to establish robust internal controls to ensure adherence to Union and national restrictive measures, preventing dealings with sanctioned individuals or entities.
• Suspicious Activity Reporting (SAR): Timely reporting of any suspicious transactions to relevant authorities is mandatory, necessitating effective internal reporting mechanisms.
• Record Retention: Maintaining comprehensive records of client information and transactions for a specified period is essential to facilitate audits and investigations.

Implementation Timeline

The AMLR came into effect on July 9, 2024, with its provisions becoming applicable from July 10, 2027.

Establishment of the Anti-Money Laundering Authority (AMLA)

A new European Anti-Money Laundering Authority (AMLA) is being established, expected to become operational in mid-2025. The AMLA will have direct and indirect supervisory powers over high-risk obliged entities in the financial sector, including the authority to intervene directly in cases of acute danger.

Accountants need to tackle all of this and it is hard to find the time and it is hard to move the cost of all this onto the clients. We are developing a system that frees up time doing routine tasks that can be used towards AML compliance. Furthermore the system supports the accountant handling AMLR and other built in security measures.

Key Steps for Compliance

• Developing Robust Internal Policies: Firms should establish comprehensive AML policies and procedures that align with the new regulations, ensuring all staff are aware of their responsibilities.
• Training and Education: Regular training programs are essential to keep professionals updated on AML laws, typologies, and reporting obligations.
• Implementing Advanced Compliance Systems: Utilizing technology-driven solutions can enhance the efficiency and effectiveness of AML compliance efforts.
• Conducting Regular Audits: Periodic reviews of AML processes help identify and rectify any deficiencies, ensuring continuous compliance.

By proactively adopting these measures, accountants can effectively navigate the enhanced AML responsibilities and contribute to the broader effort of combating financial crime within the European Union.

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