Yes, there is a 6th EU AML Directive coming!

Hard to believe, but even though the 5th EU anti-money laundering directive is not yet in force the 6th is already being worked on over in Brussels. Brexit notwithstanding the UK is likely to implement these directives. Here is all you need to know for now…

The 5th directive will be brought into force in 2020. Its main provisions are these.

  • Extending AML regulations to lettings agencies, where the rent is over 10,000 euros per month, and also regulating virtual currency exchanges and wallet providers.
  • Updating CDD rules to reflect the increasing use of electronic due diligence.
  • A responsibility when doing CDD on companies not only to check the client has filed beneficial ownership details with Companies House but also to report any discrepancies you spot.
  • Governments will have to produce a list of public functions that would make someone a PEP.
  • Regulatory bodies (like the SRA and ICAEW) will need to publish an annual report about their compliance monitoring.

The 6th directive is even less exciting. When it eventually arrives it will mainly tidy up the underlying criminal law. For example it will require states to impose criminal liability on companies for AML offences, and it will require states to criminalise aiding and abetting money laundering. So far it seems this will make little difference to the UK, where these things seem adequately covered already.

Needless to say our training and precedents will cover all changes long before they come into effect.

© 2018 Socrates Training Ltd