On February 5, the European Commission published two legislative proposals designed to reinforce the European Union’s existing rules on anti-money laundering and fund transfers. The legislative proposals comprise a directive on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing, which is complemented by a regulation on information accompanying transfers of funds, designed to ensure the “due traceability” of these transfers. Both proposals take into account the latest recommendations of the Financial Action Task Force. The aims of the proposed directive include:
The provision of a clear mechanism for the identification of beneficial owners of funds.
Achieving greater clarity and transparency of the rules on customer due diligence in order to ensure that firms have adequate controls and procedures in place.
An expansion of the provisions dealing with politically exposed persons.
The legislative proposals are accompanied by an impact assessment and executive summary of the impact assessment, along with a set of frequently asked questions.