Newest EU Directive Combats Money Laundering Terrorist Financing
03 Dec 2019 12:03 pm
Increased regulation around AML
The deadline for EU member states to incorporate the EU’s Fourth Anti-Money Laundering Directive (4AMLD) into law has already passed, and the deadline for incorporating the Fifth AML Directive (5AMLD) is approaching. Both pieces of legislation reflect the global trend of more regulation against money laundering.
The growing importance of AML follows estimates that global money laundering transactions range from 2 to 5 percent of global GDP—as much as 1.9 trillion euros. This money is subsequently used to underwrite bribery and corruption, expand criminal enterprises and fund terrorist organisations.
New requirements for obliged entities
5AMLD followed soon after 4AMLD. When the European Commission proposed the latest directive in June 2016, it called it an “urgent response” to two global events. The first was a rise in terrorist activity. The second was the leak of the Panama Papers, which revealed the extent to which companies in the EU were disguising their beneficial ownership of other companies using complex corporate structures. Is it time to revisit your risk mitigation process?
European Central Bank (ECB) steps up AML awareness
3 ways to apply this information
1. Download our eBook for a deeper look at how AML regulations are changing.
2. See how due diligence enhances visibility into beneficial ownership
3. Share this blog post with your colleagues on LinkedIn.