Background
The Fifth Anti-Money Laundering Directive, effective as of January 10, 2020 is part of the European Union’s effort to strengthen AML regulations.
The 5th AMLD is…
- To enhance transparency by setting up publicly available registers for companies, trusts and other legal arrangements
- To enhance the powers of EU Financial Intelligence Units, and provide them with access to broad information for the carrying out of their tasks
- To limit the anonymity related to virtual currencies and wallet providers, but also for pre-paid cards
- To broaden the criteria for the assessment of high-risk third countries and improve the safeguards for financial transactions to and from such countries
- To set up central bank account registries or retrieval systems in all Member States
- To improve the cooperation and enhance of information between anti-money laundering supervisors between them and between them and prudential supervisors and the European Central Bank.
Key Aspects of the 5th AMLD
Virtual Asset Service Providers and Custodian Wallet Providers
Virtual asset service providers and custodian wallet providers are now subject to AML/CTF regulations
Prepaid Cards and E-money
Customers using prepaid cards topped up more than 150 euros are now subject to identity checks.
Official list of PEPs
All member states are to maintain up-to-date lists of politically exposed persons
High Risk Third Countries
Any business relationship or financial transactions involving high-risk third countries require enhanced due diligence.
Other Stores of Values
AML requirements apply to any professionals trading value goods (value exceeding €10,000).
Range of high value goods: artworks, oil, arms, precious metals, tobacco etc
Ultimate Beneficial Ownership Registry
UBO national registers must be inter-connected at an EU level.
Companies, trusts, or any similar arrangements must make ultimate beneficial ownership information available to authorities.
ARGOS
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