Question 1

What does the abbreviation AMLR stand for?

Accepted Answer

Anti-Money Laundering Regulation, i.e. Regulation (EU) 2024/1624 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing.

Question 2

Why a regulation instead of a directive?

Accepted Answer

According to recital 2, the problem with Directive (EU) 2015/849 is “the lack of direct applicability of the rules set out in those provisions and a fragmented approach along national lines”, so the rules move into a regulation “in order to achieve the desired uniformity of application”.

Question 3

Does the AMLR apply directly in the Member States?

Accepted Answer

Yes. The final clause states: “This Regulation shall be binding in its entirety and directly applicable in all Member States.”

Question 4

Are the technical standards final?

Accepted Answer

No. The RTS specifying, among other things, customer due diligence under Article 28(1) AMLR are still drafts and have not been adopted by the Commission as delegated regulations. The content may change.

Question 5

How is beneficial ownership determined?

Accepted Answer

A beneficial owner is a natural person who ultimately owns or controls the legal entity. The ownership test in Article 52 (the 25% threshold as an indication) and the control test in Article 53 must be assessed in parallel. If no one is identified, the senior managing official is the fallback under Article 54. For trusts and similar arrangements, settlors, trustees, protectors, beneficiaries and others with ultimate control must be identified under Article 58.