New rules to prevent money laundering and combat terrorism financing in force

The European Commission (the Commission) announced that MLD5 entered into force on 9 July 2018.

The new rules introduce stricter transparency requirements, including full public access to the beneficial ownership register for companies.  Some of the key improvements include limiting the use of anonymous payments through pre-paid cards and widening customer verification requirements.

Věra Jourová, Commissioner for Justice, Consumers and Gender Equality said: “This is another important step to strengthen the EU framework to combat financial crime and terrorist financing. The 5th Anti-Money laundering directive will make the fight against money laundering more efficient. We must close all loopholes: gaps in one Member State will have an impact on all others. I urge Member States to stay true to their commitment and update their national rules as soon as possible.”

The Commission has produced a factsheet that summarises the main aims of, and changes brought by the Directive.

Member States will have to implement these new rules into domestic legislation by 10 January 2020.