A quick look at the data requirements for the 6th Anti-Money Laundering Directive 6AMLD

6AMLD: A quick look at the data requirements for the 6th Anti-Money Laundering Directive (6AMLD)

Anti-Money Laundering (AML) is one of the most intense areas of financial regulation. 

With the development of money laundering crimes constantly evolving, the steps firms take to prevent these crimes are often insufficient.

With the 6th Anti-Money Laundering Directive (6AMLD), financial institutions have increased responsibility to implement a more effective AML program and prevent money laundering crimes. 

While organisations operating in the EU region had to comply with 6AMLD by 3 December 2020, those operating outside the EU have to comply by 3 June 2021.

With implementation imminent, now is the time for banks and financial institutions to ensure they are familiar with the details of 6AMLD and prepare their compliance teams, systems, and data sources for the changes that it will introduce. 

Increased requirements

6AMLD expands the number of offenses that fall under the definition of ‘money laundering’, and with this expansion, comes the need for additional data requirements.

In addition to managing your AML resources and training compliance teams, you will need to review your data sources to ensure that you have the capability to meet the new transaction monitoring and screening obligations. 

What’s more, with GDPR in effect, financial institutions in the EU and beyond must manage their AML compliance obligations in a new data protection regime.

An intense focus on personal data

Since Anti-Money Laundering (AML) efforts require an intense focus on personal data, the restrictions introduced by GDPR may represent a challenge for financial institutions. More specifically, the legal scope of GDPR may clash with the way institutions identify customers during their due diligence procedures and how they manage their risk thereafter. That’s why it’s imperative that firms collect data from official sources and that they can be completely confident in their data

Get complete clarity on your data options

Both AML and data protection laws are constantly evolving and in the wake of new legislation, such as the Sixth Anti-Money Laundering Directive (6AMLD), your data sources must allow you to address the changing strategies of financial crime.