How will 5MLD impact customer on-boarding and customer due diligence?
There is only one year to go until the 5th Money Laundering Directive must be enacted by national regulations. The EU Fifth Anti-Money Laundering Directive brings significant changes to the requirements on regulated businesses “to better counter the financing of terrorism and to ensure increased transparency of financial transactions”.
This poses the question as to why does 5MLD follow so closely on from 4MLD? Firstly, the risk landscape is constantly changing so the Risk-Based Approach demands that requirements for AML/KYC are also continually evolving. Secondly, the Panama papers and terror attacks on European cities are driving the appetite to further restrict the flow of capital to organised crime and terrorist funding.
The bottom line is that 5MLD brings new requirements which regulated firms transacting in Europe will need to adopt by January 10th 2020 at the latest.
In our latest report, we share six key issues from 5MLD that will impact customer on-boarding and due diligence, including beneficial ownership and national register. Download our report to find out more.