EU & Adoption of Anti-Money Laundering Directive

The expansion of the European Union and the emergement of the Single Market gives many benefits to some legitimate businesses, however, it gives the opportunities also for financial crime and money laundering that often go hand-in-hand.

Therefore, European legislation aims at protecting the European financial system.

Adoption of Anti-Money Laundering Directive was adopted by the EU in May 2005 in order to prevent using the financial system for the purposes of money laundering or terrorist financing.

This is the 3rd Anti-Money Laundering Directive built on the existing EU legislation. It is applicable to the financial sector as such and to notaries, lawyers, accountants, casinos, real estate agents, trust and company service providers as well as all providers of goods having payments in excess of €15.000 in cash.

Persons subjected to the Directive have to identify and verify their customers’ and beneficial owners’ identities, to monitor business relationship between the customers and beneficial owners’; to report on suspicions of money laundering or terrorist financing to the public authorities; to take appropriate measures.

The Anti-Money Laundering Directive will be implemented by EU Member States within two years after its official publication – accordingly, towards the end of 2007.

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