16 Apr 2019
The United Kingdom is seeking input on its planned implementation of the European Union’s fifth anti-money laundering directive (5AMLD) as the government continues to negotiate an exit from the economic bloc.
In a consultation paper published Monday, HM Treasury said it would seek stakeholder commentary on the directive through June with the aim of implementing its legal and regulatory changes by January 2020, after its expected withdrawal from the EU.
The directive, which officially took effect in July 2018, expands the scope of businesses and individuals under EU anti-money laundering (AML) obligations to include any person who directly or otherwise provides material aid, assistance or advice on tax matters on a professional basis, as well as real estate letting agents who facilitate high-value transactions for a monthly rent of EUR 10,000 or more.
The mandate separately expands the kinds of art-related businesses and cryptocurrency firms that must implement AML controls, establishes the circumstances under which financial institutions can accept remote or electronic identification processes for compliance purposes, and expands customer due diligence requirements for senior managing officials of corporate clients operating in high-risk countries.
EU member-states must also make registers of ultimate beneficial owners publicly accessible and compile and publish new lists of politically exposed persons, under the directive, which separately imposes new registration requirements and other obligations for British trusts.
As part of the consultation, the UK will be hosting a series of events where stakeholders will be invited to take part in interactive discussions on any potential regulatory burdens related to the directive, Treasury said.
UK lawmakers continue to negotiate the terms of Brexit after reaching an agreement last week with EU leaders to delay the withdrawal until 31 October.
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