EU 5th Anti-Money Laundering Directive (AMLD5) — Customer Due Diligence
AMLD5 (Directive (EU) 2018/843) strengthens customer due diligence (CDD) obligations across EU member states. It expands the scope of entities subject to AML rules, mandates enhanced due diligence for high-risk third countries, and requires centralised beneficial ownership registers to be publicly accessible. Obliged entities must identify and verify the identity of beneficial owners for all legal entities before establishing a business relationship. Updated
Effective from:
1. Scope and Obliged Entities
AMLD5 applies to a broad set of obliged entities, including credit and financial institutions, auditors, external accountants and tax advisors, notaries and other independent legal professionals, trust or company service providers, estate agents (including lettings agents above €10,000/month), providers of gambling services, virtual asset service providers (VASPs) — added by AMLD5, and art dealers for transactions ≥ €10,000. Member states may extend this list to additional sectors under national transposition laws.
Explanation
This regulation applies to banks, accountants, lawyers, estate agents, gambling operators, and crypto-asset service providers operating in the EU. If your platform processes transactions for any of these sectors, CDD obligations apply.
2. Customer Due Diligence Requirements
Obliged entities must apply CDD measures when establishing a business relationship, carrying out an occasional transaction above €15,000 (€10,000 for cash), when there is a suspicion of money laundering or terrorist financing, or when doubts arise about the veracity of previously obtained identification data.
Standard CDD comprises: (1) identifying and verifying the customer using reliable, independent source documents; (2) identifying and verifying the beneficial owner (BO) — defined as natural persons owning or controlling more than 25% of shares or voting rights; (3) assessing and, where appropriate, obtaining information on the purpose and intended nature of the business relationship; and (4) conducting ongoing monitoring of the business relationship.
Explanation
Before onboarding a client, you must confirm who they are and — for companies — who ultimately owns or controls them (beneficial owner). Transactions above €15,000 also trigger identity checks even without an ongoing relationship.
3. Beneficial Ownership Register
AMLD5 introduced a requirement for member states to make beneficial ownership information publicly accessible. All EU member states must maintain a central register of beneficial owners of corporate and legal entities. The register must be publicly accessible — not limited to parties with a legitimate interest (a change from AMLD4). Trusts and similar legal arrangements must register in the member state where they are administered. Discrepancies between self-reported BO data and verified data must be flagged to the Financial Intelligence Unit (FIU). Interconnection of national registers via the Business Registers Interconnection System (BRIS) is required under Article 30(10).
Explanation
Companies operating in the EU must disclose who ultimately owns or controls them in a public register. If your platform handles corporate clients, you can cross-check their stated ownership structure against these registers.
4. Penalties and Enforcement
Member states must ensure that competent authorities can impose effective, proportionate, and dissuasive sanctions. Minimum administrative sanctions include: a public statement identifying the responsible person and the breach; a cease and desist order; a temporary ban on management functions for responsible natural persons; and maximum administrative pecuniary sanctions of at least €5,000,000 or 10% of annual turnover for credit and financial institutions, and €1,000,000 for other obliged entities. Member states may provide for criminal sanctions in addition to administrative measures.
Explanation
Non-compliance with AML/CDD obligations can result in large fines (up to 10% of annual turnover for financial institutions), public censure, and management bans. Platforms acting as obliged entities must have documented compliance programmes.
Timeline
Directive published in Official Journal
Member state transposition deadline
Sources
Related directives
- AMLD4
- AMLD6
Related knowledge
View all knowledgeFNV & CNV v Temper – Amsterdam Court of Appeal, 16 June 2026
The Amsterdam Court of Appeal held that workers who obtain assignments through the Temper platform qualify as temporary agency workers and that their relationship with Temper constitutes a temporary agency agreement under Article 7:690 of the Dutch Civil Code. The Court thereby reversed the Amsterdam District Court's 2024 judgment, which had concluded that no temporary agency agreement existed. The judgment is important for platform work because it shows that a digital platform may legally qualify as the employer within a three-party working relationship even where the work itself is performed for separate clients.
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FNV / Helpling – Amsterdam Court of Appeal, 21 September 2021
The Amsterdam Court of Appeal held that cleaners working for private households through the Helpling platform had temporary agency agreements with Helpling within the meaning of Article 7:690 of the Dutch Civil Code. The Court rejected the earlier District Court conclusion that the employment relationship existed directly between the cleaner and the household. It found that the overall contractual structure pointed to a contractual relationship between Helpling and the cleaners, while the households acted as hirers that exercised day-to-day supervision and direction over the cleaning work. Helpling therefore occupied the position of temporary employment agency and employer.