Handbook of Anti-Money Laundering.

CHAPTER 4THE EC MONEY LAUNDERING DIRECTIVES

At the time of writing, the European Commission is proposing to introduce the Fourth Money Laundering Directive, while the Third Money Laundering Directive is currently in force. The proposed changes do not appear to be particularly radical. Instead, they are focussed on streamlining, clarifying and harmonising the current Directive. The proposals include expanding the scope of the risk-based approach, and harmonising the criminalisation of the money-laundering and terrorist-financing offences. There are also proposals to harmonise the CDD requirements across Member States, and to introduce clearer rules on reporting obligations.

The new package has two main elements which are intended to complement other actions taken or planned by the Commission in respect of the fight against financial crime, corruption and tax evasion; these consist of:

• A directive on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing;
• A regulation on information accompanying transfers of funds to secure “due traceability” of these transfers.

Both proposals fully take into account the latest recommendations of the Financial Action Task Force (FATF), the world anti-money-laundering body, and go further in a number of fields to promote the highest standards for combating money laundering and countering terrorism financing.

In the press release the EU states that the new Directive:

• Improves clarity and ...