European Parliament Adopts EC Proposal on the Fifth AML Directive
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.
Related Links
Effective Date: OJ + 20 Days
Keywords: Europe, EU, Banking, AML, Fifth AML Directive, European Parliament, EC
Previous Article
PRA Publishes Findings of the 2019 Assessment of Credit UnionsRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.