While Europe was still digesting and implementing the 4th Anti-Money Laundering Directive 2015/849, a fresh legislative initiative was drawn up by the European Commission as a response to recent economic and political developments throughout the globe.
On the 19th of June 2018, the European Parliament announced the adoption of the Fifth Anti-Money Laundering Directive 2018/843 (the “Directive”), the latest link in a chain of reforms targeting the elimination of money laundering and terrorist financing. The Directive has been effective since the 9th of July 2018 and Member States have been urged by the EU Council to implement it into national law ahead of the already demanding deadline imposed (10th of January 2020).
The Directive forms part of the European Commission’s Action Plan of February 2016 that was developed in the wake of terrorist attacks and devastating scandals, such as the Swiss Leaks and Panama Papers, that shook the European Union and highlighted the significant vulnerabilities of the financial system. Through the Directive, the European Commission aims to enhance transparency and leave no room for manipulation of the financial system for the facilitation of money laundering and terrorist financing.
Key Changes of the Directive include:
- Greater transparency on beneficial owners and interconnection of registers to facilitate cooperation and exchange of information between Member States;
- Bringing into scope virtual currencies;
- Reduction of thresholds in e-money products and certain restrictions in remote payment transactions;
- Harmonisation of increased due diligence obligations regarding high-risk third countries;
- Enhancement of the power of the Financial Intelligence Units (FIUs) and cooperation and information exchange among authorities;
- Formation of Politically Exposed Persons lists by each Member State;
- Setup of centralised bank account registers or retrieval systems.
Financial crime, and in particular Money Laundering, is a severe offence that can lead to serious sanctions while regulatory authorities have become increasingly vigilant and strict in this respect. Market participants are expected to uphold the high standards in combating money laundering and terrorist financing while preparing for the implementation of a new and stricter wave of measures.
How can MAP S.Platis assist you?
MAP S.Platis has extensive knowledge in supporting firms find solutions to Anti-Money Laundering and Counter Terrorist Financing problems. We are committed to our goal of supporting the financial industry with expert guidance and advice on upcoming legislation and guiding our clients through these challenging tasks. Our support can include:
- Consulting and support on AML-related matters;
- Preparation of Gap Analysis reports for compliance with AMLD IV & AMLD V;
- Delivery of training to key compliance personnel in managing Financial Crime risk;
- Monitoring and assessment of the correct and effective implementation of your practices, measures, procedures and controls, as well as drafting relevant policies tailored to your organisation’s needs;
- Review and assessment of your organisation’s client identification, due diligence procedures and information obtained from clients;
- Ensuring that your organisation maintains appropriate client records, and;
- Ad-hoc AML/CTF health-check reports.
Why MAP S.Platis?
MAP S.Platis is the leading financial services consulting Group in Cyprus, whose clients include regulators, banks, funds and fund managers, investment firms, insurance companies and payment and electronic money institutions. Our expert team provides unique and tailored solutions in licensing, regulatory compliance, risk management, internal audit, human resources, banking, regulatory technology, executive training and innovation consulting to financial institutions in Cyprus and the EU.
MAP S.Platis Group is internationally recognized and awarded for its regulatory compliance expertise. Leveraging on a vast regulatory compliance experience accumulated while supporting the great majority of the local financial services institutions, continued interaction with regulatory authorities, multidisciplinary teams of professionals with diverse backgrounds, unparalleled track record, a global network of associates and a depth of resources, the Group can support any client’s regulatory needs efficiently and effectively.