Dear colleagues,

Art. 6 Reg. 2024/1624 stipulates that member states may provide exemptions from AML/CFT regulation for entities which engage in financial activity on an occasional or very limited basis where there is little risk of money laundering or terrorist financing. Specifically: 

Exemptions for certain financial activities

1.   With the exception of persons engaged in the activity of money remittance as defined in Article 4, point (22), of Directive (EU) 2015/2366, Member States may decide to exempt legal or natural persons that engage in a financial activity as listed in Annex I, points (2) to (12), (14) and (15), to Directive 2013/36/EU on an occasional or very limited basis where there is little risk of money laundering or terrorist financing from the requirements set out in this Regulation, provided that all of the following criteria are met:

2.   For the purposes of paragraph 1, point (a), Member States shall require that the total turnover of the financial activity does not exceed a threshold which shall be sufficiently low. That threshold shall be established at national level, depending on the type of financial activity.

3.   For the purposes of paragraph 1, point (b), Member States shall apply a maximum threshold per customer and per single transaction, whether the transaction is carried out in a single operation or through linked transactions. That maximum threshold shall be established at national level, depending on the type of financial activity. It shall be sufficiently low in order to ensure that the types of transactions in question are an impractical and inefficient method for money laundering or terrorist financing, and shall not exceed EUR 1 000 or the equivalent in national currency, irrespective of the means of payment.

4.   For the purposes of paragraph 1, point (c), Member States shall require that the turnover of the financial activity does not exceed 5 % of the total turnover of the natural or legal person concerned.

5.   In assessing the risk of money laundering or terrorist financing for the purposes of this Article, Member States shall pay particular attention to any financial activity which is considered to be particularly likely, by its nature, to be used or abused for the purposes of money laundering or terrorist financing.

6.   Member States shall establish risk-based monitoring activities or take other adequate measures to ensure that the exemptions granted pursuant to this Article are not abused.

We are seeking the assistance of colleagues to understand how Member States intend to apply Art. 6. 

In this respect (given that the AMLR has yet to come into effect), it would be helpful to understand the approach taken by Member States in respect of Article 2(3) 4AMLD which provides that Member States may decide that persons that engage in a financial activity on an occasional or very limited basis, where there is little risk of money laundering or terrorist financing, do not fall within the scope of 4AMLD.

Specifically, it would be helpful to understand: 

1. Has your Member State transposed the exemption provided for under Article 2(3) 4AMLD?
2. If so, does your Member State have a registration process for those entities seeking to avail of the exemption?
3. What is involved in the registration process and are these entities subsequently supervised or monitored in any way in your Member State?
4. Do you conduct risk assessments of these entities on a regular or periodic basis, or at all, given their low risk?
5. If your Member State has not transposed the exemption, how does your Member State treat such entities which are low-risk in nature and conduct limited financial activity? 

We would greatly value your assistance.