The 5th Anti-Money Laundering Directive (AMLD5) is a critical regulation designed to combat money laundering and terrorist financing across the European Union. It expands the scope of Know Your Customer (KYC) requirements, strengthens due diligence measures, and enhances cross-border cooperation between financial authorities.
AMLD5 also extends regulatory supervision to cryptocurrency exchanges and wallet providers, requiring them to comply with the same AML and CFT (Counter Financing of Terrorism) obligations as traditional banks. Additionally, the directive mandates greater transparency in beneficial ownership registers, reducing the anonymity often exploited by criminal networks.
- Strengthened Know Your Customer (KYC) rules.
- Extended AML rules to cryptocurrency exchanges.
- Increased transparency for ultimate beneficial ownership (UBO).
