The fifth money laundering directive was published in the EU official journal on 19 June and will come into force on 9 July. The directive introduces broader access to information on beneficial ownership of companies and trusts, and tighter controls on certain transactions. Member states must transpose the directive into their national laws by 10 January 2020.
The amended directive provides for member states to ensure that beneficial ownership information on corporate entities is accessible by:
competent authorities and financial intelligence units (FIUs), without any restriction;
obliged entities within the framework of customer due diligence; and
any member of the general public, who should be permitted access to 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 natural or legal persons referred to above should be permitted access to 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.
Other changes include:
lowering the threshold for identifying the holders of prepaid cards to €150 (from €250);
enhanced due diligence requirements for providers and custodians of virtual currencies;
improved cooperation between FIUs; and
more stringent checks on transactions involving high-risk third countries.
The fifth money laundering directive was published in the EU official journal on 19 June and will come into force on 9 July. The directive introduces broader access to information on beneficial ownership of companies and trusts, and tighter controls on certain transactions. Member states must transpose the directive into their national laws by 10 January 2020.
The amended directive provides for member states to ensure that beneficial ownership information on corporate entities is accessible by:
competent authorities and financial intelligence units (FIUs), without any restriction;
obliged entities within the framework of customer due diligence; and
any member of the general public, who should be permitted access to 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 natural or legal persons referred to above should be permitted access to 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.
Other changes include:
lowering the threshold for identifying the holders of prepaid cards to €150 (from €250);
enhanced due diligence requirements for providers and custodians of virtual currencies;
improved cooperation between FIUs; and
more stringent checks on transactions involving high-risk third countries.
90a1d87b-c1b5-43c3-a720-cd324830adee.tmb-editorspic.jpg?sfvrsn=1b2d0a7e_1)
