New AML obligations – will your company be regulated entity? 

In our previous article – Changes to the AML Package – we explained why the new AML/CFT package will be significant for the yachting industry and why the 7.5 million EUR threshold does not cover the whole issue. 

Now it’s time for a more practical question: will your company become an obliged entity? 

This is important because the answer will determine whether a broker, dealer or other market participant will have to implement AML procedures, a risk assessment, a KYC/UBO checklist, a sanctions screening system and rules for reporting suspicious transactions. 

This is not just a single regulation. 

The new regulations do not result from a single piece of legislation. They form part of a broader AML/CFT package, which includes, among others: 

• Regulation AMLR 2024/1624,
• Directive AMLD6 2024/1640,
• the Regulations establishing the AMLA, the new EU anti-money laundering authority,
• the Regulation concerning information accompanying transfers of funds and certain crypto-assets. 

From the perspective of yacht brokers and dealers, however, the AMLR will be of paramount importance, as it sets out the list of obliged entities, due diligence rules, internal obligations and provisions relating to high-value goods. The AMLR itself states that it forms part of a broader package designed to strengthen the EU’s anti-money laundering and counter-terrorist financing framework. 

The AMLR will apply from 10 July 2027. Of course, there are also exceptions to this rule. 

Who is an obliged entity? 

Put simply: 

An obliged entity is an entity on which AML regulations impose an obligation to carry out customer due diligence, assess risk, document transactions and report suspicions of money laundering or terrorist financing. 

This is not merely a formal label. It represents a change in the way a company operates. 

The obliged entity must know: 

• who the customer is,
• who the ultimate beneficial owner (UBO) is,
• what is the purpose of the transaction,
• where the funds come from,
• whether the customer or the UBO is a PEP (politically exposed person),
• whether there are any sanctions risks,
• whether the transaction appears unusual. 

In the yachting industry, this does not mean that every broker or yacht seller automatically becomes an obliged entity. 

The AMLR refers to persons engaged in trading in high-value goods, where such trading constitutes their usual or main professional activity. 

Does your company fall under AML – a quick test 

Instead of simply asking, “Does the yacht cost more than 7,5 million EUR?”, it is better to ask four questions. 

 1. Are you acting in a professional capacity? 

A private individual selling their own yacht does not automatically become a taxable person as a result. 

The situation is different for a dealer, a broker or a company that is professionally involved in the trade in yachts. 

 2. Are you involved in the trade in high-value goods? 

For the yachting industry, vessels are, of course, of particular importance. 

Under the AMLR, a vessel is considered a high-value good if its price exceeds 7,5 million EUR. 

This means that the greatest risk of falling under the AML regime applies to entities involved in the sale of superyachts. 

 3. Is this your usual or main business activity? 

A one-off contact with a client interested in a large yacht is quite different from regularly handling superyacht transactions. 

In practice, you need to look at the business model: 

• whether the company regularly offers superyachts,
• whether it advertises itself as operating in this segment,
• whether such transactions form a significant part of its business,
• whether the company wishes to enter this segment on a permanent basis.

 4. What is your actual role? 

This is particularly important when it comes to brokers. 

The situation is different for someone who merely passes on a contact, compared to a broker who conducts negotiations, coordinates documentation, organises the closing and acts as the main point of contact for the client. 

The more a broker is actually involved in managing the superyacht sales process, the harder it will be to claim that their role is purely supportive. 

Dealer versus broker – why this distinction matters 

With a dealer, the matter is usually simpler. If they sell top-of-the-range vessels as a profession, their business may fall squarely within the category of trading in high-value goods. 

With a broker, the analysis is more nuanced. 

A broker often does not purchase a yacht for their own account and does not resell it. Formally, they may “merely” act as an intermediary. But in practice, it is often the broker who manages the entire transaction process. 

That is why it is not enough to look at the title of the contract. One must look at the broker’s actual role in the transaction. 

The 7.5 million EUR threshold – what it refers to 

The 7.5 million EUR threshold is very important, but it should not be interpreted too simplistically. 

Firstly, it helps to determine whether a vessel is a high-value asset. 

Secondly, it is relevant to a specific reporting obligation. The AMLR requires the reporting of sales of vessels for a price of at least 7.5 million EUR, provided the acquisition is for non-commercial purposes. In Poland, such transactions must be reported to the General Inspector of Financial Information. 

Thirdly, this threshold does not represent the full scope of AML. 

If you are an obliged entity, you must also apply due diligence measures in other situations, for example when establishing a business relationship, in the case of certain occasional transactions, and whenever there is a suspicion of money laundering or terrorist financing. 

Therefore, the statement: 

“AML applies only to yachts worth over EUR 7.5 million” is an oversimplification. 

To be more precise: 

7.5 million EUR is the threshold for classifying a vessel as a high-value item. This threshold triggers a reporting obligation and confirms the status of an obliged entity. 

Commercial or non-commercial purpose – what to watch out for 

The AMLR applies to purchases for non-commercial purposes. 

If a yacht is purchased for genuine professional charter, tourism or other profit-making activities, the reporting obligation may not apply. 

But you need to be careful. 

The mere fact that a company is purchasing a yacht does not in itself imply a commercial purpose. The AMLR states that sales for private and non-commercial use may also involve legal entities and legal arrangements, particularly where these have been set up to manage the beneficial owner’s assets. 

Example: 

An SPV purchases a yacht but does not actually operate a charter business. The yacht is intended for the private use of the owner’s family. In such a situation, the corporate form alone does not necessarily mean that the purpose is commercial. 

What an obliged entity must do – what needs to be prepared 

If a company falls under the regime for obliged entities, it is not simply a matter of submitting a single notification to the GIIF. 

It is about an entire system. 

In practice, the following must be prepared: 

• a business risk assessment,
• an AML procedure,
• a KYC/UBO checklist,
• rules for sanctions and PEP screening,
• rules for documenting the source of funds,
• a person responsible for AML,
• training for those involved in transactions. 

The most important question in practice will be simple: 

Who is buying? 

Who is really behind the buyer? 

Where does the money come from? 

For what purpose? 

Does the transaction make sense? 

Is there a sanctions or political risk? 

If a client refuses to disclose the ownership structure, the beneficial owner or the source of funds, the problem is no longer merely organisational. It may mean that the transaction has to be halted or that a report to the GIIF needs to be considered. 

Why banks will anyway keep asking – what to prepare for 

Even if a broker is unsure of their status, the transaction will usually go through the bank. 

And as credit institutions, banks are subject to the AML regime. Furthermore, the AMLR imposes reporting obligations on credit and financial institutions providing services relating to the purchase or transfer of ownership of certain high-value goods. 

In practice: the bank may ask about: 

• bill of sale,
• the source of funds,
• the buyer’s structure,
• the beneficial owner,
• the purpose of the purchase,
• the country of registration of the yacht,
• sanctions and PEP status. 

A professional broker should prepare the client for these questions in advance, rather than only once the transfer has been held up. 

What to do right now – how to prepare 

Companies operating in, or planning to enter, the superyacht sector should start by asking themselves one question: 

Could my business model mean I’m classified as an obliged entity? 

It’s then worth preparing a brief risk analysis, an AML procedure, a checklist of documents and guidelines for communicating with clients. 

The best AML procedure is not the longest document. It is the one that the team can actually apply during a transaction. 

Summary 

The new AML/CFT package does not mean that every yacht broker will automatically become an obliged entity. 

Nor does it mean that the issue applies exclusively to yachts valued at over 7.5 million EUR. 

Ask yourself these three questions: 

1. Do you trade in yachts on a professional basis
2. Do you engage in, or plan to engage in, the trade of high-value goods?
3. Is this your usual or main business activity? 

After 10 July 2027, professionally handling yacht transactions in the high-end market segment will require not only knowledge of yachts and clients, but also the ability to answer questions such as who is buying, for whom, with what funds and for what purpose.