On 20 June 2014, the Council of the EU published a note enclosing declarations on the Presidency's general approach to the proposed Directive on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing (MLD4) and the proposed Regulation to amend and replace Regulation (EC) 1781/2006 on information on the payer accompanying transfers of funds (Wire Transfer Regulation or ‘WTR’).

What this means for you

The UK, in pursuit of greater legal certainty, has made one of the declarations and has called for the closer examination of several issues, including: (i) the provisions relating to agents and distributors and whether these constitute establishments for the purposes of MLD4 should be reviewed, not least in light of ongoing negotiations on PSD2; and (ii) the UK would seek to ensure that exemptions from certain customer due diligence measures for electronic money payment instruments being restricted to usage in one member state are consistent with the effective operation of the single market.