- The 5th AML Directive was adopted by the European Parliament and entered into force on 9th July 2018;
- Member States now have until 10 January 2020 to implement the new rules into national law;
- The driver for these changes is as result of and in response to recent terrorist attacks in Europe and the revelations of the Panama Papers scandal;
- Seeks to address noted gaps in the 4th AML and recent trends in money laundering and terrorist financing; and
- Addresses the potential money laundering and terrorist financing risks posed by virtual currencies, extending the scope of the European Union’s Regulatory Authority to Virtual Currency Transactions.
- Enhances transparency on the beneficial owners of trusts and companies operating in the EU by making public central registers accessible and available;
- Creates interconnection of these registers to facilitate cooperation and greater exchange of information between Member States;
- Enhances the access of financial intelligence Units to information, including centralised bank account registers to facilitate greater cooperation;
- Enhances cooperation between financial supervisory authorities;
- Improves the safeguards for financial transactions to and from high risk third countries;
- Lifts the anonymity of pre-paid cards and limit their use; and
- Extends AML rules to virtual currencies, tax related services and traders in works of art.
- Live date for Member States: 10 January 2020
- Individual Member States are working on national transposition of Directive.