What is the Anti-Money Laundering Regulation (AMLR)?
The Anti-Money Laundering Regulation (AMLR) is a comprehensive EU regulatory framework set to replace the current directive-based approach to combating financial crime in 2027. Unlike previous Anti-Money Laundering Directives (AMLDs) that required national implementation, AMLR will apply directly across all EU member states, creating a harmonized approach to preventing money laundering and terrorist financing.
Key elements of AMLR include:
- Enhanced due diligence requirements with more prescriptive mandates for identification methods
- Standardized beneficial ownership rules with clearer definitions and lower thresholds
- Expanded scope to include crypto-asset service providers and previously exempted entities
- Stronger enforcement mechanisms through the new Anti-Money Laundering Authority (AMLA)
AMLR prescribes three compliant identification methods for financial institutions: European Digital Identity Wallets (EUDI), notified Electronic Identification (eID) systems, and Qualified Trust Services. These methods must meet substantial or high assurance levels as defined by EU technical standards.
