The PAYTECH Book

Dynamic Regulation Readiness – Implementing the 5th Anti-Money Laundering Directive

By Gary Pine

Chief Product Officer, W2 Global Data

Determining the best course of action when considering divisive new financial trends such as the rise of digital currencies falls to the various market regulators. While some expect regulators to be leading the agenda of change, others suggest the role of the regulators is to keep an active watching brief and intervene only when necessary.

Regardless of which side of the fence you sit, the consensus is that effective regulation needs to cater for a wide range of risk profiles, accommodating a wide range of modern business structures and operating models.

Focusing on continuous enhancement of anti-money laundering (AML) controls, supported by improved AML compliance procedures and more advanced monitoring approaches, the next significant regulatory reform is already upon us.

The 5th Anti-Money Laundering Directive

On 9 July 2018, the amendment of the European Union (EU) Anti-Money Laundering Directive (AMLD) came into force. The EU Commission proposed the revised AMLD in July 2016 as part of its Action Plan against terrorism announced in February 2016, after the terrorist attacks in Paris and Brussels, and as a reaction to the Panama Papers published in April 2016. The latter involved tax-related data leaks that revealed the widespread use of offshore bank accounts and other corporate vehicles in order to hide potentially illegal proceeds and ...