The European Commission has adopted a proposal for a Fourth Anti-money Laundering Directive.
The Directive will:
- Improve the clarity and consistency of the rules applied across EU Member States
- Provide a clear mechanism for identification of beneficial owners
- Improve the clarity and transparency of the rules on customer due diligence
- Expand on the provisions dealing with politically exposed persons, (i.e. people who may represent higher risk by virtue of the political positions they hold) to include “domestic” politically exposed persons and those in international organisations. This includes among others head of states, members of government, members of parliaments and judges of supreme courts
- Extend the scope of the EU’s anti-money laundering regime to address the threats presented by new money laundering and terrorist financing techniques and vulnerabilities that currently exist in the regime
- Cover the gambling sector (the former directive covered only casinos)
- Explicitly refer to tax evasion and other crimes associated with the payment of tax
- Promote high standards for anti-money laundering policies and procedures
- Go beyond the FATF requirements in bringing within its scope all persons dealing in goods or providing services for cash payment of €7,500 or more, as there have been indications from certain stakeholders that the current €15,000 threshold was not sufficient
- Strengthen cooperation between the different national Financial Intelligence Units (“FIUs”). The latter receive, analyse and disseminate to competent authorities reports about suspicions of money laundering or terrorist financing
The Commission also adopted a proposal for a regulation on information accompanying transfers of funds which will revise the Funds Transfer Regulation (Regulation (EC) No. 1781/2006). The purpose of this proposal is to enhance traceability of funds. This proposed regulation is consistent with and complements the proposed Directive.
These proposals will now be negotiated between the Parliament and the Council under the Ordinary Legislative Procedure.
