Tag Archives: MLD5
The Commission has published a fact sheet on its new list of high-risk third countries for the purposes of MLD4. The new list contains 12 jurisdictions from the FATF list: the Bahamas, Botswana, North Korea, Ethiopia, Ghana, Iran, Pakistan, Sri Lanka, Syria, Trinidad and Tobago, Tunisia and the Yemen, and 11 additional jurisdictions: Afghanistan, American […]
We have written an article for Financial Regulation International on financial crime prevention developments in 2018.
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, […]
MLD5 has now been published in the OJEU. It is dated 30 May and was published on 19 June. Member States are required to implement it by 10 January 2020.
The Council has formally adopted MLD5 in its meeting of 14 May. The changes to MLD4, already agreed between the Council and Parliament, include: greater transparency of beneficial ownership of companies and trusts; addressing the risks of prepaid cards and virtual currencies; greater cooperation between FIUs; and enhanced checks on transactions involving high-risk countries. The […]
Ahead of its adoption, the Council and Parliament text of MLD5 was published on 26 April. After formal adoption it will need to be published in the Official Journal, and it will come into force 18 months after that. Austria and the Commission both expressed disappointment that the transparency provisions were not more onerous.
Following its vote to approve MLD5, the EP has now published the provisional version of the approved text.
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 […]
We have written an article on the current status of MLD5.
Reports from the European Parliament say that the last scheduled trilogue on MLD5 ended without agreement, because the Council did not have a mandate to negotiate and there was no text for discussion. ECON expressed its disappointment that the Council “is not ready to undertake serious negotiations”, and said it expected the Council to be […]
The European Commission has published for comment an inception impact assessment on broadening the access of centralised bank account registries under the MLD5 proposals. It asks for comments by 6 September.
The ESAs have published their final guidelines on AML and CFT required under MLD4. The guidance is intended for credit and financial institutions and should provide them with the tools they need to make risk-based decisions on their management of business relationships and occasional transactions. There are some general guidelines and some sector-specific ones. The […]
We have written an article on the current state of play of the MLD5 proposals.
The UK has decided to exercise its right to opt-in to the proposed changes to MLD4 that would facilitate data sharing between financial intelligence units and enforcement authorities.
The latest version of the report from ECON and the Committee on Civil Liberties, Justice and Home Affairs on MLD5 includes the following proposed amendments: a recommendation to consider setting a limit to cash transfers and a suggestion this should be reviewed 2 years after the Directive takes effect; highlighting the importance of compliance at […]
ECON and the Civil Liberties committee in the EP are pressing for further amendments to MLD4 to allow EU citizens to be able to access registers of company beneficial owners without having to show they have a “legitimate interest”. They also called for a public register showing the beneficial owners of trusts. Other changes discussed included requiring virtual […]
The Presidency of the Council of the EU has published the negotiating mandate it hopes will progress MLD 5 negotiations. It wants the incoming Presidency to start talks with the European Parliament on key changes to MLD 4, including changes to address risks linked to pre-paid cards and virtual currencies, improving co-operation between investigating agencies, […]
The Presidency of the EU has published a further compromise text on MLD5. Its proposed changes include abolishing the minimum threshold for remote payment transactions using general prepaid cards, strengthening cooperation between financial intelligence units, and requiring Member States to apply proportionality when deciding whether to make beneficial ownership registers public.
The Council of the EU has published the Opinion of the ECB on the proposed changes to MLD4. In principle, it says it is important that the EU regulates virtual currencies from an AML/CTF point of view, but it does not understand some of the distinctions the proposal makes between various ways of dealing with […]
Treasury has submitted a paper on the proposals to update MLD4. Among other things, the Commission had proposed bringing virtual currencies within MLD4, reducing the threshold for CDD on non-reloadable prepaid instruments and removing the online exemption, harmonising approaches to non-compliant third countries, reducing the Beneficial Ownership criteria to 10% for passive non-financial entities and […]