The European Union Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA) has finalised three sets of draft Regulatory Technical Standards (RTS) establishing key requirements for obliged entities under the EU’s new AML/CFT framework. The standards aim to promote greater clarity, consistency and a harmonised, risk-based approach to the application of AML/CFT requirements across the European Union.

The three sets of draft RTS cover:

• Business relationships and occasional transactions: criteria for distinguishing between business relationships and occasional transactions and for identifying linked transactions, supporting the consistent application of CDD thresholds; and
• Customer Due Diligence (CDD): the information to be collected and verified, including measures for lower-risk situations, non-face-to-face verification, electronic identification and the screening of politically exposed persons (PEPs), their family members and close associates;
• Group-wide arrangements: minimum requirements for effective group-wide AML/CFT arrangements, including governance, risk management, internal controls and secure information sharing.

The final draft standards have been submitted to the European Commission for adoption. Once adopted and published in the Official Journal of the European Union, they are proposed to apply six months after their entry into force.

For more information and access to the final reports and accompanying factsheets, please refer to the AMLA press release.