Which regulatory framework governs AML practices in the European Union?

The Fourth Anti-Money Laundering Directive (4AMLD) is the correct answer because it specifically provides the framework for anti-money laundering (AML) practices across the European Union. Adopted in 2015, this directive aims to enhance and harmonize AML legislation among EU member states, setting out requirements for customer due diligence, reporting obligations, and measures to prevent the misuse of financial systems for money laundering and terrorist financing.

4AMLD builds upon earlier directives and incorporates recommendations made by the Financial Action Task Force (FATF), ensuring that member states adhere to international standards in their AML regulations. This directive is essential for guiding not only financial institutions but also various non-financial sectors affected by money laundering risks.

The other choices, while relevant in the broader context of AML efforts, do not directly serve as the key regulatory framework for the EU. The Anti-Money Laundering Act is primarily a reference to legislation specific to certain jurisdictions, and not an overarching EU directive. The Financial Action Task Force Guidelines are international standards but do not themselves constitute a regulatory framework within the EU. The EU Financial Regulation pertains to financial management and oversight within the EU, rather than specifically addressing AML practices.