On July 9, 2018, the 5th Anti-Money Laundering Directive (Directive 2018/843) (5th AMLD), which amends Directive 2015/849 (4th AMLD), entered into force. The directive aims to improve transparency and strengthen the fight against financial crime across the European Union.
Member states shall comply with this directive by January 10, 2020.
This tracker will follow the relevant laws, regulations and administrative procedures necessary for each EU/EEA member state's implementation of amendments to comply with the directive.
The 5th AMLD introduces five main amendments to the current regime which are relevant to the payments sector:
- An extension of the scope to include providers of exchange services and custodian wallet providers: New obliged entities; providers engaged in exchange services between virtual currencies and fiat currencies, and custodian wallet providers, will be required to fulfil anti-money laundering (AML) and counter-terrorism financing (CTF) obligations, including transaction monitoring and identifying and reporting suspicious activity to competent authorities, among other compliance obligations. (Article 2(1)(3), 5th AMLD).
- Prepaid cards: The transaction threshold has been reduced from €250 to €150. Stricter rules in regard to the anonymity of electronic money products (prepaid cards) have also been created (Article 12, 5th AMLD).
- Transactions with high-risk third countries policy: Enhanced due diligence measures for financial transactions to and from high-risk third countries (Article 18a, 5th AMLD).
- Beneficial ownership registers: Beneficial ownership registers will be made publically available (Aritcle 30(5), 5th AMLD). In addition, trustees of any trust or similar legal arrangement administered by the member state must be included on the beneficial ownership register, which must be accessible to competent authorities and financial intelligence units (FIUs) and any natural person who can demonstrate a legitimate interest (Article 31, 5th AMLD).
- Financial intelligence units (FIU): Enhanced information sharing powers of EU financial intelligence units (Article 50a, 5th AMLD).
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Find more information on the 5th AMLD amendments here: Practical Guide: Critical Summary of the 5th AMLD.