Regulation 2024/1624 - Prevention of the use of the financial system for the purposes of money laundering or terrorist financing - Main contents
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official title
Regulation (EU) 2024/1624 of the European Parliament and of the Council of 31 May 2024 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing| Legal instrument | Regulation |
|---|---|
| Number legal act | Regulation 2024/1624 |
| Original proposal | COM(2021)420  |
| CELEX number i | 32024R1624 |
| Document | 31-05-2024; Date of vote |
|---|---|
| Signature | 31-05-2024 |
| Effect | 09-07-2024; Entry into force Date pub. +20 See Art 90 10-07-2027; Application See Art 90 10-07-2029; Application Partial application See Art 90 |
| Deadline | 09-07-2027; See Art 85.2 10-07-2030; See Art 88 10-07-2032; Review See Art 87 |
| End of validity | 31-12-9999 |
Official Journal of the European Union |
EN L series |
2024/1624 |
19.6.2024 |
REGULATION (EU) 2024/1624 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
of 31 May 2024
on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing
(Text with EEA relevance)
THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union, and in particular Article 114 thereof,
Having regard to the proposal from the European Commission,
After transmission of the draft legislative act to the national parliaments,
Having regard to the opinion of the European Central Bank (1),
Having regard to the opinion of the European Economic and Social Committee (2),
Acting in accordance with the ordinary legislative procedure (3),
Whereas:
(1) |
Directive (EU) 2015/849 of the European Parliament and of the Council (4) constitutes the main legal instrument for the prevention of the use of the Union’s financial system for the purposes of money laundering and terrorist financing. That Directive sets out a comprehensive legal framework, which Directive (EU) 2018/843 of the European Parliament and the Council (5) further strengthened by addressing emerging money laundering and terrorist financing risks and increasing transparency of beneficial ownership. Notwithstanding the achievements under that legal framework, experience has shown that further improvements should be introduced to adequately mitigate money laundering and terrorist financing risks and to effectively detect criminal attempts to misuse the Union’s financial system for criminal purposes. |
(2) |
The main challenge identified in respect of the application of the provisions of Directive (EU) 2015/849 that lay down obligations for obliged entities, is the lack of direct applicability of the rules set out in those provisions and a fragmented approach along national lines. Although those rules have existed and evolved over three decades, they are still implemented in a manner not fully consistent with the requirements of an integrated internal market. Therefore, it is necessary that rules on matters currently covered in Directive (EU) 2015/849 which could be directly applicable by the obliged entities concerned are addressed in a Regulation in order to achieve the desired uniformity of application. |
(3) |
This new instrument is part of a comprehensive package that aims to strengthen the Union’s framework for anti-money laundering and countering the financing of terrorism (‘AML/CFT’). Together, this Regulation, Directive (EU) 2024/1640 of the European Parliament and of the Council (6) and Regulations (EU) 2023/1113 (7) and (EU) 2024/1620 (8) of the European Parliament and of the Council will form the legal framework governing the AML/CFT requirements to be met by obliged entities and underpinning the Union’s AML/CFT institutional framework, including the establishment of an Authority for anti-money laundering and countering the financing of terrorism (AMLA). |
(4) |
Money laundering and terrorist financing are frequently carried out in an international context. Measures adopted at Union level, without taking into account international coordination and cooperation, would have very limited effect. The measures adopted by the Union in that field should therefore be compatible with, and at least as stringent as, actions undertaken at international level. Union action should continue to take particular account of the Financial Action Task Force (FATF) Recommendations and instruments of other international bodies active in the fight against money laundering and terrorist financing. With a view to reinforcing the efficacy of the fight against money laundering and terrorist financing, the relevant Union legal acts should, where appropriate, be aligned with... |
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