What will be the impacts of implementation of the Fourth AML EU Directive (2015/849) ?
Since 1991, the European Union has regularly implemented new anti-money laundering directives. On the 20th of May 2015, the European Parliament and the Council issued the Fourth AML Directive (2015/849) on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, amending the 2005 Directive. This new directive should be implemented to local law for June 2017 on the latest.
On 18 September, after a short push-back, Belgium transposed into national law the EU 2015/849 AML4 Directive (AMLD4). 18/09/2017 Belgium AML legal update. The 5th Anti-Money Directive was published in June 2018. Member States must bring into force their national regulations and administrative provisions to comply with the Fifth Directive (AMLD5) by 10 January 2020 at the latest.
Legal and Regulatory compliance challenges
This is a new challenge for financial institutions and other submitted companies as local regulators do not hesitate to impose huge fines and mandatory corrective measures in a short period. The financial loss due to AML deficiencies isn�t a residual anymore risk and it must be perfectly understood. Fighting money laundering is a central topic in Compliance. With the reinforcement of controls done by local and European supervisors, financial institutions must ensure that they comply in terms of anti-money laundering through all their services but also make certain, through their regulatory watch, that they are well up-to-date with the latest issues from the EU, OFAC, GAFI/FATF, local regulator, etc.
The sensitisation to the arrival of the new regulation should be set by the "tone at the top" and senior accountability with a clear governance. A coherent understanding of what "good" looks like should be grasped within the different business lines and cross-borders if the company is part of a group. An audit trail of the "as is" and "to be" situation is a recommended step for the evidencing part in case your company is scrutinized.
This goes from minutes of workshops, changing strategies, procedures and policies, follow-up and implementation of regulatory requirements, advice from the local competent authorities, training, etc. As compliance consultants, we can assist in different domains, but to manage the Compliance department the use of a dashboard system covering our responsibilities becomes mandatory.
