EU Draft Legislation on European AML and CTF financing protocols

This updated legislation involves a new directive on the prevention of the use of the financial system for money laundering and terrorist financing and a regulation on the information to accompany transfers of funds.

Although much of the current requirements for UK businesses for Customer Due Diligence will remain the same, there are a few interesting changes, including:

  • The new requirements on beneficial ownership information.
  • Removal of the distinction between domestic and foreign PEPs
  • Lower exemptions for one-off transactions.

Customer Due Diligence

Warren Russell, Managing Director at W2 Global Data Solutions commented: “These new proposals further highlight the need for all regulated businesses, regardless of size and footprint to perform CDD checks. Regardless of whether you are a high street retail bank, international audit practice or magic circle legal firm, or indeed a sole practitioner solicitor, accountant or mortgage broker, CDD is a must. The problem however is that independent financial professionals can sometimes struggle to access cost effective yet adequate due diligence”.

You can read more of what Warren had to say, and the full release here.

Full details of these proposals can also be found on the European Commission website.

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