EC published Directive (EU) 2018/843, which amends Directive (EU) 2015/849 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, in addition to amending Directives 2009/138/EC and 2013/36/EU. This Directive shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.
This Directive aims not only to detect and investigate money laundering, but also to prevent it from occurring. Enhancing transparency could be a powerful deterrent. Member states shall bring into force the laws, regulations, and administrative provisions necessary to comply with this Directive by January 10, 2020. They shall immediately communicate the text of those provisions to EC. 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. The key changes to directive 2015/849 involve:
- Broadening access to information on beneficial ownership and improving transparency in the ownership of companies and trusts
- Addressing risks linked to prepaid cards and virtual currencies
- Cooperation between financial intelligence units
- Improved checks on transactions involving high-risk third countries
Member states should set up beneficial ownership registers for corporate and other legal entities by January 10, 2020 and for trusts and similar legal arrangements by March 10, 2020. Central registers should be interconnected via the European Central Platform by March 10, 2021. Member states should set up centralized automated mechanisms allowing the identification of holders of bank and payment accounts and safe-deposit boxes by September 10, 2020. Furthermore, by January 11, 2022, and every three years thereafter, the Commission shall draw up a report on the implementation of this Directive and submit it to the European Parliament and to the Council.
Related Link: Directive (EU) 2018/843
Effective Date: July 09, 2018
Keywords: Europe, EU, Banking, PMI, AML/CFT, Directive 2018/843, Data Protection, EC
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