5th Anti-Money Laundering Directive

The 5th Anti-Money Laundering Directive is a set of European Union rules designed to prevent criminals from disguising the origins of illegal funds. It requires financial institutions and other designated entities to verify their customers' identities more thoroughly, monitor transactions for suspicious activity, and report large or unusual transactions to authorities. The goal is to make it harder for money obtained through illicit means—like fraud, corruption, or drug trafficking—to enter the legitimate economy, thereby protecting the integrity of the financial system across EU countries.