Page 67 - BIPAR Annual Report 2020_EN short
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Anti-Money Laundering



 (AML)









 Background  Publication &  Transposition of   'On  7  May  2020,  the  new  von  der  Leyen  Commission   business relationship. The Commission amended the
 AMLD       published a six-point Action Plan  to further strengthen   list in the form of a Delegated Regulation. It will now
            the  EU’s  fight  against  money  laundering  and  terrorist   be submitted to the European Parliament and Council
 The Fourth Anti-Money Laundering Directive (Directive 2015/849)   Member States are due  to transpose   financing.  The  Action  Plan  sets  out  concrete  measures   of the EU for approval within one month. Given the
 constitutes the main EU legal instrument in the prevention of use of the   the  Fifth  AML  Directive into  national   that the Commission will take over the next 12 months   Coronavirus crisis, the Regulation listing third countries
 law by 10 January 2020.  In May 2020,   to  enforce,  supervise  and  coordinate  the  EU’s  rules   – and therefore applying new protective measures – will
 financial system for the purposes of money laundering and terrorist
 the European Commission initiated   on  AML/CTF.  It  builds  on  the  following:  1.  Effective   only start to apply as of 1 October 2020.
 financing. It provides that “obliged entities” shall apply customer due   infringement procedures in the form of   implementation of existing rules, 2) a single EU rulebook,
 diligence requirements when entering into a business relationship.   formal notice against Belgium, Czechia,   3) a EU-level supervisor, 4) a coordination and support   Finally,  the Commission  published  a methodology  to
 The scope of the Directive covers, among others financial institutions,   Estonia, Ireland, Greece, Luxembourg,   mechanism for national Financial Intelligence Units,   identify  high-risk  third  countries  that  have  strategic
 Austria,  Poland  and  the  UK  for  having   5) enforcing EU-level criminal law provisions and   deficiencies  in  their  anti-money  laundering  and
 insurance intermediaries as defined in the Insurance Mediation Directive
 only  partially  transposed  the  Fifth   information exchange, and 6) the EU’s global role.  countering  terrorist  financing  regimes  that  pose
 (IMD) when they “act with respect to life insurance and other investment-  AMLD.  The Commission had previously   significant  threats  to  the  EU’s  financial  system.  The
 related services, with the exception of a tied insurance intermediary”.   in February 2020  also addressed
 letters of  formal  notice  to  Cyprus,
 Hungary, the Netherlands, Portugal,
 In June 2018, a Directive amending the Fourth AMLD, the so-called   Romania, Slovakia,  Slovenia,  Spain

 Fifth AMLD, was published in the EU Official Journal. The Fifth AMLD   and Estonia because these Member
 (Directive 2018/843) complements the existing EU legal framework   States had  not communicated any
 transposition  measures. Furthermore,
 by setting out additional measures to better counter the financing of
 the Commission sent a reasoned
 terrorism and to ensure increased transparency of financial transactions.   opinion to Austria and the Netherlands

 The Commission had proposed these additional AML rules in the wake of   and a letter of formal notice to Czechia,
 Hungary,  Italy,  Slovenia,  Sweden,
 terrorist attacks and the Panama Papers revelations in 2016 (see also our
 and  the  United  Kingdom  for failing
 Annual Report 2018).  to completely  transpose the  Fourth
 AMLD.  The  Member States  concerned

 In December 2018, the Council of the EU adopted an Action Plan setting   have two months  to respond  and
 take  the  relevant  action;  otherwise,
 out short term non-legislative actions to better tackle AML challenges. In
 the Commission may pursue  the next
 particular, the Council recommended that a “post-mortem” analysis of   infringement steps.
 recent money laundering cases in EU banks be carried out to understand

 how they came about and to help shape possible additional actions.
 Commission Action Plan on AML

 In the context of its proposal on the ESAs Review, the European   According to the European Commission,
 Commission adopted targeted amendments with a view to ensuring   the  fight  against  money  laundering  and
 terrorist  financing  is  instrumental  to   Together with the Action Plan, the Commission has   aim of this methodology is to provide more clarity and
 that AML/CTF rules are effectively supervised across the EU and that
 ensuring  financial  stability  and  security   also adopted a new list of third countries with strategic   transparency in the process of identifying these  third
 different competent authorities cooperate closely with each other. Under   in  Europe.  Recent  money  laundering   deficiencies in their anti-money laundering and counter-  countries.
 this reform, which was adopted by the EU legislators in April 2018, the   scandals have revealed the need for   terrorist  financing  frameworks.  The  listing  does  not
 stricter rules at EU level. Legislative gaps   entail  any  type  of  sanctions  or  restrictions  on  trade   The Commission launched  a public  consultation on the
 powers related to the prevention and mitigation of risks posed to the
 occurring in one Member State have an   relations, but requires obliged entities to take enhanced   Action Plan to fight against money laundering and terrorist
 financial sector by money laundering and terrorist financing activities   impact on the EU as a whole. That is why   due diligence measures on transactions involving these   financing  which  will  run  until  29  July  2020.  BIPAR  has
 are now centralised for all financial institutions at the European Banking   EU  rules  should  be  implemented  and   countries. This includes obtaining additional information   launched an internal consultation amongst its member-
 Authority -EBA- (see also our Annual Report 2019).  supervised efficiently in order to combat   on the customer and on the beneficial owner or obtaining   associations and based on the feedback collected it will
 crime and protect the EU financial system.  the approval of senior management for establishing a   submit its contribution to the Commission.



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