Question:

Under the Fourth Anti Money Laundering Directive (4AMLD), who will have access to information on beneficial ownership (BO information) of VCC or ICAV funds?

Answer:

Under Article 30 of 4 AMLD, Competent Authorities and Financial Intelligence Units (FIUs) must be able to access BO information in a timely manner. Moreover, VCC or ICAV funds must give BO information to entities who are obliged to comply with 4AMLD (Obliged Entities which include credit institutions, financial institutions, auditors, tax advisers, certain legal professionals) who are completing customer due diligence (CDD) on the VCC or ICAV fund.

BO information must also be held on a central register which can be accessed by:

(a) Competent Authorities and FIUs, without any restriction;

(b) Obliged Entities, within the framework of CDD; and

(c) any person or organisation that can demonstrate a legitimate interest.

Notes:

  • 4AMLD is due to be transposed by EU Member States 26 June 2017.
  • The provisions regarding access to BO information are likely to change when the Fifth Anti Money Laundering Directive is finalised and transposed, with a possible outcome of public access.
  • 4AMLD permits Member States to provide for an exemption to access for Obliged Entities for CDD and persons/ entities with a legitimate interest to all or part of the BO information on a case-by-case basis in exceptional circumstances, where such access would expose the beneficial owner to the risk of fraud, kidnapping, blackmail, violence or intimidation, or where the beneficial owner is a minor or otherwise incapable.
  • The European Union (Anti-Money Laundering: Beneficial Ownership of Corporate Entities) Regulations 2016 came into operation on 15 November 2016 and are discussed further in our In Focus paper.