EP votes through MLD5

The European Parliament adopted in plenary session on 19 April  the proposals for MLD5. In an EP press release prior to the vote:

  • the proposals to require public access to beneficial ownership information, to introduce registers for beneficial ownership of trusts and for banks accounts and safe deposit boxes were highlighted as important measures;
  • EP noted the “huge importance” of the proposals reducing the threshold for identifying holders of anonymous prepaid cards from €250 to €150; and
  • the requirement for virtual currency exchange platforms and custodian wallet providers to carry out the same CDD as banks will end anonymity in the sector – with the EP’s rapporteur explaining that when holders of crypto currency want to convert them to an EU currency the banks will need to ask who the customer is and where the virtual money originates.

The press release following the vote also welcomed the strengthened investigation powers and improvements over safeguarding financial transactions involving high-risk third countries. MLD5 will now be formally adopted and then there will be an 18 month implementation period.