The Fourth Money Laundering Directive is designed to reinforce the supranational approach to combating money laundering and terrorist financing. The Directive brings the EU’s framework into alignment with the Financial Action Task Force’s international anti-money laundering and counter-terrorist financing recommendations.
The Fourth Money Laundering Directive will repeal and replace the Third Money Laundering Directive (2005/60/EC) and the Third Money Laundering implementing Directive (2006/70/EC).
The Regulation on information accompanying transfers of funds will revise Regulation (EC) No 1781/2006. This Regulation will set out rules for payment service providers to send information on the payer throughout the payment chain for the purposes of prevention, investigation and detection of money laundering and terrorist financing.
The Fourth Money Laundering Directive (on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing) came into force on 25 June 2015. It entered into force and effect as of 26 June 2017.
Anti-money laundering, terrorist financing, and know your client obligations
FCA-authorised firms are required, pursuant to the Money Laundering, Terrorist Financing and Transfer of Funds (Information on Payer) Regulations 2017 (“MLRs”), to implement anti-money laundering (“AML”) measures.
On 11 December 2018, the German Federal Financial Supervisory Authority (BaFin) has published its Guidance on the construction and application of the German Money Laundering Act (“GwG”) (“Auslegungs- und Anwendungshinweise zum Geldwäschegesetz”). By doing so, BaFin fulfils its duties to provide such guidance according to sect. 51 GwG. Background of ...
Against the backdrop of the 4th and 5th Anti-Money Laundering Directives, Belgium passed a law dated 18 September 2017 on preventing money laundering and terrorist financing, and restricting the use of cash (“AML Law”). The AML Law laid the groundwork for a domestic ultimate beneficial owners (“UBOs”) register in readiness ...
The Executive Director of Supervision for Investment, Wholesale and Specialists at the Financial Conduct Authority (“FCA”) has encouraged firms to develop technology to help combat financial crime. In her speech at the Anti-Money Laundering TechSprint event on 22 May, Megan Butler reiterated that the FCA has a public duty to ...
The Fifth EU Anti Money Laundering Directive provides for the first time for the inclusion of exchange platforms for virtual currencies and digital wallet providers in the group of obliged entities under money laundering law. In addition, new requirements are imposed on the group of obliged entities. This concerns, among ...
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Member states will be required to transpose MLD5 by 10 January 2020
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