3rd EU Money Laundering Directive. Overview

As with most directives, the Third Money Laundering Directive started with the draft. The Committee on the Prevention of Money Laundering and Terrorist Financing endorsed the European Commission’s draft of technical measures to supplement the Third Money Laundering Directive on May 10, 2006.

The Third Money Laundering Directive incorporated into EU law the revisions made in June 2003 by the Financial Action Task Force (FATF) to its Forty Recommendations on combating money laundering. It also extended the provisions to any financial transaction that possibly could be linked to terrorist activities.

It should be mentioned that the Third Money Laundering Directive allowed the European Commission to adopt implementing measures or “technical measures” in order to clarify certain aspects of the regulation such as technical aspects of the definitions, to establish criteria for assessing “low risk” or “high risk” of money laundering or terrorist financing, as well as to establish standards for assessing persons carrying out a financial activity on a very limited basis.

As it has already been discussed previously, the Third EU Money Laundering Directive became operative on December 15, 2007. So, it was incorporated into the national laws of the 25 EU members.

Currently, the recently implemented Directive brought some significant changes that has been discussed previously.

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