The Council of the EU has reached agreement on amendments to strengthen the fourth anti-money laundering directive. The main changes will introduce: broader access to information on beneficial ownership of companies and trusts; a lower threshold for identifying the holders of prepaid cards; enhanced due diligence requirements for providers and custodians of virtual currencies; improved cooperation between financial intelligence units (FIUs); and more stringent checks on transactions involving high-risk third countries.
The Commission first presented these proposals in July 2016, following the announcement in February 2016 of its action plan against terrorist financing.
The amended directive provides for member states to ensure that beneficial ownership information on corporate entities is accessible by:
competent authorities and FIUs, without any restriction;
obliged entities within the framework of customer due diligence; and
any member of the general public, who should be permitted to access at least the name, the month and year of birth, and the country of residence and nationality of the beneficial owner, as well as the nature and extent of the beneficial interest held.
In relation to trusts, beneficial ownership information should be accessible by:
competent authorities and FIUs, without any restriction;
obliged entities within the framework of customer due diligence;
any natural or legal person demonstrating a ‘legitimate interest’; and
any natural or legal person filing a written request in relation to a trust or similar legal arrangement which holds or owns a controlling interest in certain corporate or other legal entities.
The information accessible to natural or legal persons referred to above shall be the name, the month and year of birth, and the country of residence and nationality of the beneficial owner, as well as the nature and extent of the beneficial interest held.
Once the directive has come into force, member states will have 18 months to transpose the new rules into their domestic legislation.
The Council of the EU has reached agreement on amendments to strengthen the fourth anti-money laundering directive. The main changes will introduce: broader access to information on beneficial ownership of companies and trusts; a lower threshold for identifying the holders of prepaid cards; enhanced due diligence requirements for providers and custodians of virtual currencies; improved cooperation between financial intelligence units (FIUs); and more stringent checks on transactions involving high-risk third countries.
The Commission first presented these proposals in July 2016, following the announcement in February 2016 of its action plan against terrorist financing.
The amended directive provides for member states to ensure that beneficial ownership information on corporate entities is accessible by:
competent authorities and FIUs, without any restriction;
obliged entities within the framework of customer due diligence; and
any member of the general public, who should be permitted to access at least the name, the month and year of birth, and the country of residence and nationality of the beneficial owner, as well as the nature and extent of the beneficial interest held.
In relation to trusts, beneficial ownership information should be accessible by:
competent authorities and FIUs, without any restriction;
obliged entities within the framework of customer due diligence;
any natural or legal person demonstrating a ‘legitimate interest’; and
any natural or legal person filing a written request in relation to a trust or similar legal arrangement which holds or owns a controlling interest in certain corporate or other legal entities.
The information accessible to natural or legal persons referred to above shall be the name, the month and year of birth, and the country of residence and nationality of the beneficial owner, as well as the nature and extent of the beneficial interest held.
Once the directive has come into force, member states will have 18 months to transpose the new rules into their domestic legislation.
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