Issue 506 (Week ending 20/04/2022)

The world of KYC compliance is constantly evolving. Like the introduction of most new legislation, AMLD6 emphasises the need for more in-depth due diligence checks, to more sectors than ever before.

AMLD6 continues to widen the scope of checks and now includes further criteria around AML, UBO, PEP and Background Checks on Individuals. This means companies who never before needed to run PEP checks or identify UBOs now need to run these checks.

CRIFVision-net have been helping our customers with AML compliance now for over 10 years. From experience, it is more efficient for clients to check their entire customer book for PEP's than to segment it on a risk based approach. Of course certain customers may be identified for enhanced due diligence.

The AMLD directives have also called for an increased frequency of monitoring of customers, which means customer due diligence data needs to be kept more up-to-date. In case of audit, clear records need to be ready to show a full audit trail.

Depending on the size of the customer, individuals identified as persons of significant control with that customers (directors and shareholders) are also often PEP screened in corporate customers, at both on-boarding and then monitored for future change.

With CRIFVision-net's CCI & PEP reports, you can save time and cost when risk assessing your customers. It is one of the most comprehensive background checks in the Irish market. Call or email us today at info.vision-net@crif.com or 01 903 2660.

Sectors in Scope:
As mentioned, the sectors in scope for AML compliance are widening with each new directive release:

• Credit institutions
• Financial institutions
• Life Insurance Providers
• Auditors, accountants and tax advisors
• Notaries and other independent legal professionals
• Trusts or company service providers
• Estate agents
• Payment Gateway Providers
• Traders in goods making or receiving payments above E10,000
• Providers of gambling services (Due Dil on over E2,000)

AMLD5 specifically makes note of entities dealing in art, oil, arms, precious metals and tobacco, which are now included in the E10,000 limit.

AMLD6 now also includes areas of cyber, crypto companies and areas of environmental crime sectors.

When Does It Become Effective in Ireland?
It is worth noting that Ireland will not be adopting of AMLD6. It is believed the existing National Irish Law is deemed the equivalent to what is contained within AMLD6. Therefore, its contents is still applicable to the Irish Market.

What does AMLD56 Introduce?

1. Harmonise Primary Offences:
   AMLD6 expands and harmonises the definition of criminal activities to remove any existing ambiguities. The new directive outlines 22 Predicate Crimes that constitute money laundering.
2. Stricter Penalties:
   AMLD6 introduces stricter penalties for natural persons.
3. Broader Criminal Liability:
   In previous directives, punishment for the operation of money laundering was only applicable to individuals. AMLD6 broadens the scope of criminal liability to permit legal entities to be disciplined.
4. Expanded Regulatory Scope:
   Anyone who is 'Aiding' or 'Abetting' with the act of money laundering in any way, will be deemed to be committing a crime and will incur penalties.
5. Increased Co-Operation:
   AMLD6 emphasises the need for increased cooperation between member states.

Get in touch today if you think we can help you with your compliance needs.