Fifth Anti -Money Laundering Directive (5MLD)
What is changing?
This directive amends the fourth Anti - Money Laundering Directive (4MLD).
In response to perceived weaknesses in AML legislation, the European Commission amended the adopted text of 4MLD.
Key points for industry
- Increased scope: designate virtual currency exchange platforms (and wallet providers) as obliged entities, requiring customer due diligence to be conducted to note that when Gibraltar started regulating DLT providers locally the Anti-Money Laundering requirements were applied to them and hence this had already been implemented locally.
- Remote payment identification: requirement to identify customers for remote payment transactions exceeding 50 euros.
- New powers to Financial Intelligence Units (FIUs): facilitate their cooperation by further aligning the rules for such Units with the latest international standards.
- Harmonise EU approach towards high-risk third countries: apply enhanced and harmonised due diligence measures towards high-risk third countries.
- Improved transparency of information on beneficial ownership: including public access to such information for companies, or trusts engaged in commercial or business-like activities and access to such information on a legitimate-interest basis for family or charitable trusts. Will also include interconnection of Centralised Beneficial Ownership Registers allowing competent authorities, FIUs and obliged entities to identify the beneficial owners in an easy and efficient way.