5th Anti-Money Laundering Directive (AMLD5) Directive (EU) 2018/843
- Issuing authority
- European Union
- Effective date
- Applied from 10 January 2020. It will be replaced by the EU's new AML framework, including AMLD6 and the AMLR, from 10 July 2027.
- Scope
- All EU Member States
Key requirements
The previous EU AML directive still relevant until AMLD6 takes over in 2027. Big changes when it was introduced: made beneficial ownership registers public, brought virtual currency exchanges and custodian wallet providers under AML rules, lowered the prepaid card threshold and tightened checks for high-risk third countries.
Quick Summary
AMLD5 expanded the EU's anti-money laundering rules to cover new risks and sectors. It brought certain crypto businesses within the scope of AML rules, strengthened beneficial ownership transparency, introduced stricter checks for high-risk third countries, and reduced the anonymity of prepaid cards.
What is it?
It responded to changes in technology and financial crime by introducing new requirements for crypto businesses, improving access to beneficial ownership information, and strengthening measures for higher-risk customers and transactions.
Who does it apply to?
- Banks
- Payment institutions
- Electronic money institutions
- Virtual currency exchanges
- Custodian wallet providers
- Lawyers
- Accountants
- Trust and company service providers
- Estate agents
- AML and compliance professionals
Why does it matter?
AMLD5 was one of the first major EU laws to regulate parts of the crypto industry for AML purposes. It also strengthened transparency by improving beneficial ownership rules and introduced additional safeguards to help firms better identify and manage higher-risk business relationships.
AboutAML Breakdown
AMLD5 is often remembered as the directive that brought parts of the crypto industry into the EU's AML framework. Before AMLD5, virtual currency exchanges and custodian wallet providers were generally outside the scope of EU AML rules. AMLD5 changed that by requiring these businesses to carry out customer due diligence and report suspicious activity, just like other regulated financial institutions. Although AMLD5 will eventually be replaced by the AMLR and AMLD6, it remains an important part of the EU's AML history because many of today's AML requirements for crypto businesses first appeared here.