European Parliament adopted the EC proposal on the fifth Anti-Money Laundering (AML) Directive. This Directive lays down measures to facilitate access by competent authorities to financial information and bank account information for the prevention, detection, investigation, or prosecution of serious criminal offences. It also provides for measures to facilitate access by Financial Intelligence Units to law enforcement information and to facilitate the cooperation between Financial Intelligence Units. This Directive shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.
The new rules are intended to bring more transparency to improve the fight against money laundering and terrorist financing across EU. EC presented this proposal in July 2016 and the proposal is part of the EC's Action Plan of February 2016 to strengthen the fight against terrorist financing. The Fifth Anti-Money Laundering Directive will:
- Enhance the powers of EU Financial Intelligence Units and facilitate their increasing transparency on who really owns companies and trusts by establishing beneficial ownership registers
- Prevent risks associated with the use of virtual currencies for terrorist financing and limiting the use of prepaid cards
- Improve the safeguards for financial transactions to, and from, high-risk third countries
- Enhance the access of Financial Intelligence Units to information, including centralized bank account registers
- Ensure centralized national bank and payment account registers or central data retrieval systems in all member states
Member states shall adopt and publish the laws, regulations, and administrative provisions necessary to comply with this Directive by 26 months after the date of entry into force of the respective EU Directive. Member states shall communicate to EC the text of the main provisions of national law, which they adopt in the field covered by this Directive.
Effective Date: OJ + 20 Days
Keywords: Europe, EU, Banking, AML, Fifth AML Directive, European Parliament, EC
Previous ArticleFDIC Seeks Comments on Renewal of Certain Information Collections
EBA published a report analyzing the impact of the unwind mechanism of the liquidity coverage ratio (LCR) for a sample of European banks over a three-year period, from the end of 2016 to the first quarter of 2020.
In response to questions from a member of the European Parliament, the ECB President Christine Lagarde issued a letter clarifying the possibility of amending the AnaCredit Regulation and making targeted longer-term refinancing operations (TLTROs) dependent on the climate-related impact of bank loans.
IASB started the post-implementation review of the classification and measurement requirements in IFRS 9 on financial instruments and added the review as a project to its work plan.
FSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions.
EBA published a report on the benchmarking of national loan enforcement frameworks across 27 EU member states, in response to the call for advice from EC.
FSB published a letter from its Chair Randal K. Quarles, along with two reports exploring various aspects of the market turmoil resulting from the COVID-19 event.
RBNZ launched a consultation on the details for implementing the final Capital Review decisions announced in December 2019.
The Trustees of the IFRS Foundation, which are responsible for the governance and oversight of IASB, have announced the appointment of Dr. Andreas Barckow as the IASB Chair, effective July 2021.
HKMA issued a letter to consult the banking industry on a full set of proposed draft amendments to the Banking (Capital) Rules for implementing the Basel standard on capital requirements for banks’ equity investments in funds in Hong Kong.
ESRB published an opinion assessing the decision of Swedish Financial Supervisory Authority (FSA) to extend the application period of a stricter measure for residential mortgage lending, in accordance with Article 458 of the Capital Requirements Regulation (CRR).