Money laundering and terrorist financing are no longer issues confined to the banking sector. Across the European Union, businesses in finance, legal, crypto, luxury goods, and even sports must now comply with strict anti-money laundering (AML) regulations. These evolving rules aim to close loopholes, harmonise compliance standards, and increase enforcement. In our previous post, we outlined Money Laundering Offenses in detail. In today’s blog post we’ll dive deeper in the current AML framework in the EU and changes under new legislation.
The EU AML Framework: Past, Present, and Future
The EU has taken a step-by-step approach to building its AML rules:
- AMLD4 and AMLD5 introduced key obligations like customer due diligence (CDD), beneficial ownership registers, and suspicious transaction reporting.
- 6AMLD standardised AML offences across Member States and expanded liability to include both legal entities and individuals.
- AMLA (Anti-Money Laundering Authority), launched on July 1st, 2025 and based in Frankfurt, will directly supervise high-risk financial institutions and coordinate national regulators.
- AMLR (Anti-Money Laundering Regulation), coming into force in July 2027, will replace directives with a single EU-wide rulebook.
Who Must Follow EU AML Rules?
AML compliance obligations apply to a wide array of sectors, referred to as “obliged entities“:
- Banks, insurers, and payment providers
- Auditors, accountants, and tax advisers
- Lawyers (in specific transactions)
- Real estate agents
- Trust and company service providers (TCSPs)
Under the AMLR, the scope expands to include:
- Crypto-asset Service Providers
- Traders in luxury goods (e.g., cars, yachts, watches)
- Professional football clubs and agents
NB: If your company handles money, high-value goods, or complex corporate structures, you likely fall within the AML compliance net.
Six Key AML Obligations for Businesses
Regardless of your sector, AML obligations typically fall into six categories:
- Risk Assessment: Document and regularly update your exposure to AML risks.
- Customer Due Diligence (CDD): Verify client identities, determine beneficial ownership, and assess the purpose of the business relationship.
- Ongoing Monitoring: Track transactions for patterns or red flags.
- Suspicious Activity Reporting: Notify your country’s Financial Intelligence Unit (FIU) of any anomalies.
- Record-Keeping: Store CDD data, ownership records, and transactions for at least five years.
- Governance and Training: Appoint an AML officer, establish internal policies, and ensure staff are trained.
What’s Changing Under AMLR and AMLA?
The upcoming AMLR and AMLA frameworks introduce notable changes:
- Single rulebook for all EU countries
- EU-wide cash payment cap of €10,000, with stricter national limits possible
- Stronger beneficial-ownership rules, potentially reducing the 25% threshold
- Crypto transparency, requiring sender/receiver info on transactions
- Centralised supervision of high-risk financial institutions by AMLA
Why AML Compliance Matters for Foreign Companies
For non-EU businesses entering the European market, AML rules can seem fragmented and overly complex. Totally understandable! The new AMLR framework simplifies this by unifying the rulebook for all 27 EU countries.
| Benefits | Challenges |
| Less ambiguity about national rules | Stricter standards and centralised oversight |
| Easier alignment across subsidiaries |
Embedding AML compliance from the outset improves banking access, builds trust with partners, and reduces regulatory risk.
How PrimeBridge Global Can Help
Navigating EU AML rules can be daunting, especially for foreign businesses expanding into Europe Our Corporate Secretarial Services help you stay compliant from day one. We assist with Beneficial Ownership filings, Board Documentation, Annual Reports (Financial Statements), and ongoing Compliance Support.
Need assistance? Don’t hesitate to Contact us Now.