The new anti-money laundering directives

Recent global and European developments call for the need to strengthen the EU’s efforts to combat money laundering and the financing of terrorist activities. In order to improve the effectiveness of the EU’s Anti-Money Laundering and Counter Terrorist Financing (AML/CTF) efforts, the European Commission issued the 4th AML Directive in May 2015 and repealed the previous one. The 4th AML Directive entails the amendments that need to be adopted by all Member States by 26 June 2017.

On 5 July 2016 the European Commission presented a new proposal for a Directive amending the 4th AML Directive, which is referred to as the 5th AΜL Directive.

The 5th AML Directive is proceeding along the European Union’s legislative process.

Impact on obliged entities

Due to the new requirements being imposed, there will be an increased requirement on obliged entities, and these entities should ensure that they are prepared for these changes, and have measures in place to train staff, update policies and procedures, and implement new controls. Additionally, obliged persons should ensure that they are sufficiently resourced to effectively implement the measures required, and to perform any remediation work.