On 31 May, the European Parliament and the Council of the EU adopted Regulation 2024/1624 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing (AML). This is another step towards the unification of the laws of the Member States. The provisions of the Regulation will be fully applicable from 10 July 2027.
Purpose and significance of the Regulation
The new AML Regulation aims to unify the rules for counteracting money laundering and terrorist financing (AML/CFT) throughout the European Union. Instead of the current practice of implementing EU directives into national law, the regulations will apply directly. This is to reduce interpretation discrepancies and improve the effectiveness of the fight against financial crime.
Who does it apply to?
The regulation covers all existing obliged institutions, such as banks, investment firms, insurers, tax advisors and notaries. However, what is new is the expansion of the catalogue to include entities that have so far been often overlooked – m.in. the luxury goods sector, sports, and providers of services related to crypto-assets (CASP) and fintechs. Institutions obliged under the provisions of the Regulation will also include liberal professions such as: attorney-at-law, legal advisor, tax advisor, statutory auditor or external accountants.
Key changes
Against the background of the current Polish AML Act of 2018, the new Regulation brings a number of significant novelties:
- Single cash threshold – A maximum threshold of €10,000 has been introduced for cash transactions across the EU. Member States can set even lower limits, but not higher.
- Beneficial owner – the share limit defining the beneficial owner is generally ≥ 25%, but may be reduced to 15% in high-risk sectors.
- Greater scope of entities – AML obligations will also apply to industries that have so far been less regulated, including the trade in luxury goods and the sports sector.
- Harmonised supervision and sanctions – The new rules provide for a single sanctions and supervision structure, with the European Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA) playing a key role.
- Stronger verification requirements – obliged institutions must implement harmonised due diligence procedures (CDD) and update beneficial ownership data.
Transition from the Polish AML Act to EU regulation – key differences
| Area | Poland (currently) | Regulation 2024/1624 |
| Applicable law | AML Act implementing EU directives | Directly applicable in full from July 2027 |
| Beneficial owner | > 25% of shares | ≥ 25% (or 15% in the high-risk sector) |
| Scope of entities | Mainly financial institutions | Extended to the luxury goods sector, sports, CASP |
| Cash limit | Limit of PLN 15,000 | €10,000 limit (lower limit locally possible) |
| Sanctions and monitoring | Distributed standards | Harmonised AML architecture of the Union |
| Surveillance system | National FIUs and supervisors | National supervision with a central role for AMLA |
What does this mean in practice?
For obliged institutions, the new regulations mean the need to adapt internal procedures, implement stricter control mechanisms and train employees. In practice, this means, m.in other things, the expansion of transaction monitoring systems, better tools for verifying customer identity and more frequent compliance audits.
It is worth noting that the Regulation is directly applicable, which means that it will not require implementation into national law. Companies and institutions must therefore prepare now for the upcoming changes to avoid the risk of financial sanctions.
