6th AML Directive (6AMLD) Guide:
Protecting Your International SME

Discover how the 6th AML Directive changes compliance for SMEs. Learn about the 22 predicate offenses, TBML mechanics, and how to build a Wwft-proof defense.

Beyond the Action Movies: Why the 6th AML Directive is a Critical Operational Threat to Your Business

For many business owners, terms like “Money Laundering” and “Terrorism Financing” (CTF) sound like plot points from a Hollywood thriller. However, in the reality of global supply chains, these are not distant concepts—they are immediate operational risks.

With the full implementation of the 6th Anti-Money Laundering Directive (6AMLD) across Europe, the regulatory landscape has shifted. The stakes for Small and Medium-Sized Enterprises (SMEs) have never been higher. Compliance is no longer a “big bank problem”; it is a survival requirement for any company trading across borders.

In this comprehensive guide, we dive deep into the mechanics of financial crime, the expansion of legal liability under the Wwft, and the specific red flags that could trigger a bank audit or a frozen account.

What is 6AMLD? The Expansion of Financial Crime

The 6th AML Directive wasn’t just a minor update; it fundamentally redefined what constitutes a financial crime. One of the most significant changes is the harmonization of “predicate offenses.”

The 22 Predicate Offenses

The 6AMLD identifies 22 specific crimes that are now officially categorized as money laundering across all EU member states. These include:

Environmental Crime

Profits from illegal logging, waste disposal, or wildlife trafficking

Cybercrime

Funds derived from phishing, ransomware, or identity theft.

Tax Crimes

Direct and indirect taxes related to fraudulent trade.

Corruption and Bribery

Payments made to facilitate “faster” customs clearance or contract wins.

The Mechanics of Risk: How Your Trade is Exploited

Money laundering is a sophisticated process designed to make “dirty” money appear “clean” by integrating it into legitimate trade. Criminal organizations often exploit unsuspecting SMEs through three primary methods:

Shell and Shelf Companies

A Shell Company exists only on paper, with no active business operations or assets. A Shelf Company is an aged entity that has been “on the shelf” for years to look established. Criminals use these to hide the identity of the Ultimate Beneficial Owner (UBO). When you onboard a partner without verifying their physical presence, you risk becoming a link in a chain owned by a sanctioned individual.

Layering and Integration

Layering involves moving funds through complex transactions to distance them from the source. In a trade environment, this looks like:

  • Phantom Shipping: You are asked to pay for goods that are never delivered, providing a “legitimate” reason for a bank transfer.
  • Multiple Invoicing: Issuing several invoices for a single shipment to justify moving large sums of money.

Trade-Based Money Laundering (TBML)

TBML is one of the most complex forms of laundering. It involves misrepresenting the price, quantity, or quality of goods.

  • Over-invoicing: A partner sends you goods worth €10k but invoices you for €100k. The extra €90k is “cleaned” through your bank account.
  • Under-invoicing: You receive €100k worth of goods but are invoiced for €10k, allowing the partner to retain high-value assets secretly.

Liability Shift: The End of "Wilful Blindness"

The most significant shift brought by 6AMLD and the Dutch Wwft (Wet ter voorkoming van witwassen en financieren van terrorisme) is the clarification of who is responsible.

Expansion to Legal Entities

Previously, criminal liability often focused on individuals. Under 6AMLD, legal entities (your company) can be held liable for the criminal activities of employees or representatives. If a lack of supervision allowed a money laundering transaction to happen, the company itself faces criminal charges.

The “Duty of Care” (Wwft)

Under Dutch law, you have a proactive “Duty of Care.” This means:

  1. KYC/KYB: You must identify and verify the identity of your customer or supplier.
  2. UBO Verification: You must know exactly who the “Ultimate Beneficial Owner” is—the person who owns more than 25% or has significant control.
  3. Ongoing Monitoring: You must ensure that the transactions of your partner remain consistent with their known risk profile.

The “I Didn’t Know” Fallacy: Under 6AMLD, “wilful blindness” (deliberately ignoring suspicious signs) is a criminal offense. If a regulator determines you ought to have known a partner was high-risk, you face massive fines, up to 4 years of imprisonment for directors, and the loss of your banking services.

Top 10 Red Flags for International Traders

Early detection is your only defense. If you spot any of these signs, you must stop the onboarding process immediately and perform Enhanced Due Diligence (EDD).

1. Opaque Ownership

The partner is owned by a company in a tax haven (e.g., BVI, Cayman Islands) with no clear UBO.

2. Sudden Volume Spikes

A new partner with a turnover of €1M suddenly places a €10M order.

3. Circular Trade

Goods are being shipped back and forth between the same parties with no clear economic purpose.

4. Third-Party Payments

You are asked to pay an entity that is not listed on the contract.

5. Address Discrepancies

The registered business address is a virtual office or a residential apartment in a high-risk region.

6. Adverse Media Hits

The partner or its directors are mentioned in the “Panama Papers” or local news regarding fraud.

7. Inconsistent Logic

A textile company suddenly wants to buy high-end industrial machinery.

8. Pressure for Speed

The partner pushes for immediate payment “before the paperwork is finished.”

9. Geographic Mismatch

A company in a low-risk country (Germany) wants to ship goods through multiple high-risk jurisdictions.

10. Sanction Proximity

The partner has business ties to countries currently under heavy international sanctions (e.g., Russia, Iran).

Building Your "Defense Dossier"

When a bank blocks your transaction, they usually give you 48 hours to provide proof of due diligence. If you are unprepared, your business stops.

A professional KYC Report acts as your “Defense Dossier.” It proves to the bank, the DNB, and your auditors that you have:

  • Verified the UBO and checked for PEP (Politically Exposed Persons) status.
  • Cross-referenced the entity against global sanction lists.
  • Audited the physical operational reality of the business.
  • Screened for adverse media in local languages.

Compliance as a Competitive Advantage

The 6th AML Directive has made the world smaller and the risks higher. But for SMEs that take compliance seriously, it is also a competitive advantage. Being “bank-ready” means your transactions move faster, your reputation remains spotless, and your business is protected from the predatory tactics of criminal networks.

Don’t wait for the bank to freeze your accounts. Professional due diligence is no longer a luxury—it is the foundation of global trade.

Secure your next deal today.

For a fixed fee of €175, KYC Checks B.V. provides the enterprise-level intelligence you need to stay compliant and keep your capital flowing.

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Includes enhanced structure analysis via external intelligence providers, extended PEP and adverse media screening, and import/export plus geographic risk assessment. Recommended for complex or higher-risk international transactions.