3rd EU Money Laundering Directive brings changes. Part 1

It has already been mentioned previously that recently the Third EU Money Laundering Directive was implemented and due to implementation deadline for the Third EU Money Laundering Directive in December, European companies had to to speed on anti-money laundering issues and best practices quickly.

The Directive became operative on December 15, 2007. There were firms that already acted according to the current anti-money laundering regulations, so, the new guidelines did not entail any change for them. However, many firms had to adopt some changes.

From December 15, firms need to have a risk assessment in place, to conduct their client due diligence on the basis of this risk assessment, and to monitor their clients, both new and existing ones.

As regads due diligence, in accordance with the new regulations, simplified customer due diligence measures are permitted only for certain clients. But customer due diligence is a must when establishing a business relationship, carrying out transaction of EUR 15 000 or more, and, of course, in case of suspecting money laundering or terrorist financing.

For all higher risk clients, enhanced due diligence must be applied. Hogher risk client category includes public officials from outside the EU, clients not met physically and politically exposed persons (PEPs).

Leave a Reply

You must be logged in to post a comment.