One of the central pillars of the EU AML Package adopted in June 2024 is theEU AML Regulation. This regulation introduces directly applicable AML/CFT rules across all EU member states, replacing the previous approach where AML directives were transposed into national laws. This shift addresses regulatory fragmentation and strengthens enforcement across borders.
The complete AML Package includes the following four pillars:
EU AML Regulation (directly applicable rulebook)
6th AML Directive (not the 7th)
Establishment of a new EU Anti-Money Laundering Authority (AMLA)
Revised Transfer of Funds Regulation, especially concerning crypto-asset service providers The EU AML Regulation aims to unify and streamline the application of AML/CFT measures across the EU, ensuring a consistent and effective framework.
Reference: ACAMS CAMS Study Guide - 6th Edition, Chapter: International AML Standards - Section:
European Union AML Framework and Developments

A Financial Intelligence Unit (FIU) functions as the central hub for receiving and analyzing suspicious activity reports and can obtain additional information from reporting entities to support law enforcement in investigating and combating financial crimes.

* D: "Cooperation and coordination between regulatory authorities, law enforcement agencies, and FIUs are essential for effective AML investigations, especially in cross-border cases. This is often accomplished through formal agreements, MOUs, and information-sharing mechanisms."(CAMS 6th Edition, International Cooperation in AML/CFT; FATF Recommendations 36-40) References:
CAMS 6th Edition, International Cooperation
FATF Recommendations 36-40

Hawala operatives rely on informal networks outside the regulated banking system, allowing funds to move across borders without the usual AML controls.
Because hawala transactions are settled on trust rather than recorded through formal channels, it's often impossible to trace who originated or ultimately received the funds.

Independent testing is critical for the third line of defense to provide unbiased and effective oversight, ensuring that reviews and audits are objective and free from influence by the first or second lines of defense.