The fourth EU Money Laundering Directive (MLD4) was published by the European Parliament in May 2015. The purpose of MLD4 is to remove any ambiguities in the previous directive and associated legislation and strengthen Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) rules across all EU member states. The new directive takes into account the 2012 recommendations of the Financial Action Task Force (FATF) and all ‘obliged entities’ (previously termed ‘designated persons’), will have to comply with the new framework by 26 June 2017 at the latest.
These obliged entities include:
- credit institutions;
- financial institutions;
- auditors, external accountants and tax advisors;
- notaries and other independent legal professionals (under specific conditions);
- trusts or company service providers;
- estate agents;
- traders in goods making or receiving payments above €10,000; and
- providers of gambling services.
What are the implications for your business?
The directive impacts various businesses as set out above. MLD4 clarifies and reinforces the Customer Due Diligence (CDD) rules, the requirement for a risk based approach by firms and emphasises the need for ongoing monitoring. It also clarifies the requirement to be able to evidence your organisations AML/CTF rationale.
Whilst MLD4 builds upon existing AML provisions, there are a few important developments to consider.
See our document for the full list of these considerations.