Key Implications of the 4th EU AML Directive
Recently, significant media attention has been paid to the use of the financial system for money laundering and terrorist financing purposes. The amount and sophistication of this misuse of the financial system has also increased, leading the European Union (EU) to establish enhanced anti-money laundering (AML) rules. While the EU’s 4th AML Directive (4th AMLD) is the EU’s current response to this attention, the European Parliament and the Council of the European Union have already reached an agreement on amendments to a fifth revision of the AMLD.
The proposed changes to AMLD 5 include enhancing the authority of the national Financial Intelligence Units (FIUs), introducing enhanced safeguards for financial flows from high-risk countries, and widening the scope of the AML Directive to cover virtual currencies and anonymous pre-paid instruments.