From 10 July 2027, Regulation (EU) 2024/1624, the new EU Anti-Money Laundering Regulation (“AMLR”), will become directly applicable across the European Union and will introduce specific obligations relevant to the luxury yacht market.
Of particular significance is the EUR 7.5 million threshold applicable to watercraft.
The Regulation classifies watercraft exceeding EUR 7.5 million as high-value goods and brings professional traders in such assets within the category of AML obliged entities.
This will entail a more structured compliance framework, including customer identification, verification of the ultimate beneficial owner, assessment of ownership and control structures, sanctions and PEP screening and, where appropriate, enhanced due diligence concerning the source of funds and source of wealth.
For yacht sale and purchase transactions, the most important provision is Article 74 AMLR. It requires transactions involving watercraft sold for at least EUR 7.5 million and acquired for non-commercial purposes to be reported to the competent Financial Intelligence Unit.
This reporting obligation is particularly noteworthy because it is not limited to suspicious transactions. It is triggered by the nature and value of the transaction itself.
The practical impact on the superyacht market is likely to be significant.
Transactions involving SPVs, offshore ownership structures, trusts or layered corporate vehicles will require greater transparency as to beneficial ownership. AML clearance is therefore likely to become an increasingly important element of the transaction timetable and should be addressed at an early stage, rather than immediately before closing.
The new regime may also affect transaction documentation. Sale and purchase agreements, brokerage arrangements and escrow documentation may increasingly need to contain provisions dealing with KYC requirements, disclosure of beneficial ownership information, source-of-funds checks and the right to suspend completion where regulatory requirements have not been satisfied.
A further issue concerns yacht brokers. The AMLR refers expressly to persons professionally trading in high-value goods, whereas other provisions of the Regulation expressly mention intermediaries. The precise scope of application to pure brokerage activities may therefore require further regulatory guidance.
Equally relevant is the distinction between yachts acquired for commercial and non-commercial purposes. In the superyacht sector, where vessels may be corporately owned, commercially registered or occasionally chartered while remaining principally used by their beneficial owner, this distinction may not always be straightforward.
The EUR 7.5 million threshold should therefore be regarded not merely as a valuation benchmark, but as a new regulatory threshold capable of affecting the structure, documentation and timing of high-value yacht transactions in the European Union.
Operators active in the sector would be well advised to review their internal AML procedures well in advance of 10 July 2027.
