The EU’s anti-money-laundering landscape is undergoing its most significant transformation in decades. With the new EU AML Package now in motion, financial firms across Europe, and those with EU ties, face stricter rules, harmonised standards, and a powerful new supervisor: the Anti-Money Laundering Authority (AMLA).
For compliance teams, fund managers, and investment firms, this is about reshaping how you monitor, report, and manage financial crime risk. Here’s what you need to know, and how to prepare.
What’s changing?
1. A new EU-wide supervisor
As of 1 January 2026, AMLA has taken over all AML/CFT mandates from the European Banking Authority (EBA). By 2028, it will directly supervise around 40 high-risk, cross-border financial institutions, with the power to impose EU-wide penalties.
Why it matters: Even if you’re not directly supervised by AMLA, expect tighter coordination between national regulators and more consistent enforcement across borders.
2. Harmonised rules come into force
In 2027, two cornerstone pieces of legislation take effect:
AMLR (Regulation EU 2024/1624) – directly applicable across all member states
AMLD6 (Directive EU 2024/1640) – sets criminal sanctions and enforcement standards
These introduce:
- Standardised customer due diligence (CDD) and enhanced due diligence (EDD) requirements
- Mandatory integration with EU-wide beneficial ownership and account registers
- Expanded scope to include crypto-asset providers, high-value goods dealers, and even professional football clubs
3. Higher stakes on penalties
Fines can now reach €10 million or 10% of annual turnover (whichever is higher) for serious breaches. Reputational damage and operational disruption from enforcement actions could be even costlier.
What this means for your firm
If you operate in or with the EU
- Gap analysis is urgent. Review existing AML policies, transaction monitoring systems, and Know Your Customer (KYC) workflows against the forthcoming Regulatory Technical Standards (RTS).
- Beneficial ownership transparency is non-negotiable. Ensure your systems can integrate with EU centralised registers by 2027.
- Cross-border firms face dual scrutiny. UK-based firms with EU clients, branches, or counterparties must navigate both UK MLR reforms and AMLA’s expectations.
If you’re UK-only (for now)
Brexit doesn’t mean immunity. The UK is reforming its own Money Laundering Regulations in parallel, and supervisors are prioritising:
- Stricter CDD/EDD expectations
- Digital onboarding verification
- Stronger audit trails and documentation
- Divergence between UK and EU regimes creates complexity for firms operating across both jurisdictions.
Where Stand On The Right fits in
While AMLA focuses on money-laundering risk, the underlying compliance challenges overlap significantly with what Stand On The Right already solves:
- Real-time monitoring of personal account dealing, gifts, and outside business activities
- Custom approval workflows that create clear, auditable trails
- Bespoke integrations with holdings and trade data for seamless compliance checks
- Full system auditing to demonstrate robust controls during regulatory reviews
The new framework rewards firms that can demonstrate proactive, technology-enabled compliance—not reactive box-ticking.
Your 2026 Action Plan
- Conduct a comprehensive gap analysis against AMLR/AMLD6 requirements.
- Map your EU exposure: clients, counterparties, branches, and service providers.
- Upgrade systems to integrate with beneficial ownership registers and support enhanced monitoring.
- Train your teams on new CDD/EDD expectations and high-risk country rules.
- Document everything. Supervisors will prioritise audit trails and evidence of risk-based decision-making.
Looking ahead
The EU’s new AML framework marks a cultural shift. Firms that embed compliance into their operations, leverage technology, and stay ahead of deadlines will not only avoid penalties but also build stronger trust with investors, clients, and regulators.
2026 is your preparation year. 2027 is compliance. 2028 is enforcement.
Ready to future-proof your compliance programme? Get in touch to see how Stand On The Right can help you stay ahead.