ICT Views

The 4th EU Money Laundering Directive (4MLD) explained in 90 seconds (Transcript)

by: (Global Head of AML) on

I am going to share with you my view on the 4th EU Directive’ in just 90 seconds.

  • The Directive was finally adopted on 20 May 2015
  • And reflects the 40 recommendations that were published by FATF in 2012 and these repeal the 3RD EU Directive.

The changes that you and your customers need to know include:

  • Beneficial ownership of legal persons, including trusts, must now be registered and made available to all ‘interested’ parties to support CDD.
  • PEP definition now includes domestic PEPs and members of international organisations, such as UN, IMF and dare I say it FIFA? But PEPS no longer have to be approved by the board of directors. Good news for the over worked Board!
  • Housing letting agents have been included as obliged entities as concerns remain about the misuse of the housing market.
  • Persons trading in goods should now be covered if they handle cash transactions of EUR 10 000 or more.
  • Gambling sector services has been extended beyond casinos
  • A new list of high-risk jurisdictions will be provided by the Commission but details of the ‘equivalence list’ appear to have been lost
  • Tax crimes have been added to the definition of ‘criminal activity’
  • Customer records may now be held for up to ten year, but no more than this! 

What happens next?

  • Member states will be required to adopt and ratify the changes on a national level.
  • This may well take until late 2016 but several countries are moving forward with their own legal initiative so why not act today and take the next steps and close those doors to the big bad wolf outside!!

 Watch the video below 

Keep an eye out for upcoming 90 second videos on our Youtube channel

To stay updated on the latest developments in governance,risk and compliance, anti money laundering and financial crime prevention, please follow us on either LinkedInFacebook and Twitter where you are guaranteed to be notified when our next blog post goes live!

Categories :



Comments closed


Tel: +44 (0)121 362 7534

Blogger facebook LinkedIn Twitter youtube google + Trust Pilot

© 2017 – International Compliance Training Ltd, a division of Wilmington plc. International Compliance Training Ltd, is a company registered in England & Wales with company number 4363296 GB. Registered office: Wilmington PLC, 5th Floor, 10 Whitechapel High Street, London. E1 8QS VAT NO.GB 899 3725 51