Fourth Money Laundering Directive
On 24 February 2014, the Council of the EU published a compromise proposal (dated 21 February 2014) on the proposed Fourth Money Laundering Directive or MLD4.
This follows a press release from the EU Parliament announcing that its Economic and Monetary Affairs Committee (ECON) and Civil Liberties, Justice and Home Affairs Committee (LIBE) have voted to adopt a draft report on the proposed Fourth Money Laundering Directive which will replace the Third Money Laundering Directive (2005/60/EC).
The committees' amendments will be put to a vote by the EU Parliament at its 10 to 13 March 2014 plenary session. The new Parliament (which will be elected in May 2014) will begin negotiating the legislation with the European Commission and Council of the EU in the second half of 2014. ECON updated a webpage highlighting a likely delay to MLD4 on 18 February 2014
FATF
On 17 February 2014, the Financial Action Task Force (FATF) published the outcomes of its February plenary meeting, where it:
- Published two documents as part of its ongoing work to identify jurisdictions that may pose a risk to the international financial system:
- FATF Public Statement on jurisdictions with strategic anti-money laundering and combating the financing of terrorism (AML/CFT) deficiencies.
- Improving Global AML/CFT Compliance: on-going process - Jurisdictions with strategic AML/CFT deficiencies for which they have developed an action plan with the FATF.
- Published follow-up reports to the mutual evaluations of Aruba (Kingdom of the Netherlands), Austria, Canada, Luxembourg, Mexico and the Netherlands.
- Received an update on AML/CFT improvements in Antigua and Barbuda, Bangladesh and Vietnam.
- Reviewed the voluntary tax compliance programmes in several jurisdictions.
- Published universal procedures for assessments conducted by assessment bodies.
- Continued to develop guidance on effective implementation of beneficial ownership requirements.
- Explored common issues between AML/CFT and data protection experts.
- Conducted further research on the AML/CFT implications of virtual currency.
