11 Jan 2017
In June 2015, the European Union’s fourth anti-money laundering directive (“4MLD”) was enacted, with the requirement that all member states transpose the rules into national law within two years. The directive is the EU’s main instrument for preventing the misuse of its financial system by money launderers and supporters of terrorism.
But financial crimes are evolving phenomena, and the terrorist attacks across Europe in late 2015 and throughout 2016, combined with the Panama Papers leak, suggested the need for tougher measures and closer collaboration. A package of amendments to 4MLD has therefore been proposed, before the directive has entered law in most member states. These changes, generally referred to as “5MLD”, will be voted on later in January. European lawmakers will decide at the same time if the amendments should share the transposal date of 4MLD (26th June 2017), or if member states should be able to adopt the original directive before enacting the changes to it.
KYC360 will offer a full analysis of 5MLD subsequent to the vote, but in the meantime we have summarised and categorised the proposed changes. The original EU document is available here.
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