The European Commission has sent formal notice letters to 8 Member States for failing to tell it about their implementation measures for MLD5. It requires a response within 2 months, after which it may move to a “reasoned opinion”.
The Commission has also published for comment an AML Roadmap that sets out its approach to addressing the various deficiencies in how Member Stats have implemented the AML framework. It says there are wide-ranging problems, from inadequate implementation by firms in the regulated sector, to inadequate supervision by authorities, deficiencies in how FIUs function and poor regulatory co-operation both domestically and at cross-border level. It says the minimum harmonisation approach shows the clear need for enhancement of the EU legal framework, so it needs to consider an EU body to take on some supervision and to create a support and coordination mechanism for FIUs.
The Commission plans a Communication articulating the issues and identify where further action is needed at EU level. Consultation closes on 11 March.