Anti-Money Laundering Directive/Wire Transfer Regulation

1. Commission proposals for a Directive and a Regulation General Approach agreed Anti-Money Laundering Directive/Wire Transfer Regulation • Overview • On 5 February 2013, the European Commission adopted two proposals for legislation to update the EU’s existing Third Anti-Money Laundering (AML) Directive and Fund Transfers Regulation. The Directive relates to the prevention of the use of the financial system for the purpose of money laundering and terrorist financing and a Regulation on information accompanying transfers of funds to secure “due traceability” of these transfers. The proposed Directive; • Provides a clear mechanism for identification of beneficial owners. • Improves clarity and transparency of the rules on customer due diligence • Expands the provisions dealing with politically exposed persons, • Extends its scope to address new threats and vulnerabilities e.g. coverage of the gambling sector (the former Directive covered only casinos) and by including an explicit reference to tax crimes. • Goes beyond the FATF requirements in bringing within its scope all persons dealing in goods or providing services for cash payment of €7,500 or more, however the Directive provides for minimum harmonisation and Member States may decide to go below this threshold. • Strengthens the cooperation between the different national Financial Intelligence Units (FIUs) whose tasks are to receive, analyse and disseminate to competent authorities reports about suspicions of money laundering or terrorist financing. • In a recently published Opinion on virtual currencies, the European Banking Authority has recommended that EU legislators consider declaring market participants at the direct interface between conventional and virtual currencies, such as virtual currency exchanges, to become ‘obliged entities’ under the EU Anti Money Laundering Directive and thus subject to its anti-money laundering and counter terrorist financing requirements Directive & Regulation February 2013 June 2014 Latest news The Greek Presidency secured a Council General Approach on the AML legislative package (including the 4th AML Directive and the new Fund Transfer Regulation) at the COREPER meeting on 18 June 2014. On 2 October 2014, the Financial Services Working Party will meet at attachés' level for preparation of negotiations with the European Parliament as regards the proposals for a Regulation on information accompanying transfers of funds and a Directive on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing (AML package). The Italian Presidency now has a negotiating mandate to begin trilogues with the European Parliament on this legislative package (expected start date – Q4, 2014). On 11 March 2014, the European Parliamentin plenary session adopted the 4th Anti-Money Laundering Directive and the accompanying Regulation on information accompanying transfers of funds. The Parliament adopted the text at first reading, even though the Council had not finalised its position yet, in order to consolidate the work done in the current Parliamentary term, and to prevent the next European Parliament from altering the positions’ of the rapporteurs. Having been re-elected, KrišjānisKarins (LV, EPP) is expected to continue as Rapporteur on this file for the duration of the 2014-2019 European Parliament term.