Financial Crime

Issue 1119 / 22 July 2021

European Commission

AML - European Commission publishes proposal for a Directive amending Directive (EU) 2019/1153, as regards access of competent authorities to centralised bank account registries through the single access point - 20 July 2021

The European Commission has published a proposal (and an accompanying commission staff working document) for a Directive of the European Parliament and of the Council amending Directive (EU) 2019/1153 of the European Parliament and of the Council, as regards access of competent authorities to centralised bank account registries through the single access point (COM(2021) 429 final).

The proposal seeks to extend access to the bank account registers (BAR) single access point – which is being developed and will be operated by the Commission - to law enforcement authorities. The BAR will contain information from centralised bank account registries to allow the identification of any natural or legal persons holding or controlling payment accounts, bank accounts and safe-deposit boxes. 

The deadline for providing feedback on the proposed Directive is 16 September 2021. Comments received will be summarised and presented to the European Parliament and the Council of the EU to feed into its consideration of the proposed legislation.

Proposal for a Directive of the European Parliament and of the Council amending Directive (EU) 2019/1153 of the European Parliament and of the Council, as regards access of competent authorities to centralised bank account registries through the single access point (COM(2021) 429 final)

Commission Staff Working Document

Webpage

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AML/CTF in the EU - European Commission adopts new package of measures - 20 July 2021

The European Commission has adopted a package of measures with a view to strengthening the EU’s anti-money laundering and countering terrorism financing (AML/CTF) rules following commitments made by the Commission in its AML/CTF action plan, adopted in May 2020, as previously reported in this Bulletin.

The package comprises four legislative proposals:

  • a proposed Regulation on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing (COM(2021) 420 final). This contains a range of new and directly applicable AML/CFT rules, including in relation to customer due diligence and beneficial ownership;
  • a proposed Regulation establishing the Authority for Anti-Money Laundering and Countering the Financing of Terrorism and amending Regulations (EU) 1093/2010, (EU) 1094/2010 and (EU) 1095/2020 (COM(2021) 421 final). This will establish a new EU regulatory agency to be known as AMLA which will act as a central authority to ensure the consistent application of EU AML/CTF rules;
  • a proposed Regulation on information accompanying transfers of funds and certain cryptoassets (recast) (COM(2021) 422 final) which would revise Regulation 2015/847/EU on information accompanying transfers of funds, making it possible to trace transfers of cryptoassets and limit large cash payments; and
  • a proposed Directive on the mechanisms to be put in place by EU member states for the prevention of the use of the financial system for the purposes of money laundering or terrorist financing. This Directive would repeal Directive (EU) 2015/849 (COM(2021) 423 final) (known as MLD4), and would be the sixth EU Directive on AML/CTF (MLD6).

AMLA will have a co-ordination role in the non-financial sector as well as direct supervision of financial sector entities exposed to the highest risk of money laundering and terrorism financing. AMLA will be established in 2023 and start most of its activities in 2024, taking over direct supervision of certain high-risk financial entities in 2026.

Notably, the package will expand the list of obliged entities subject to the EU AML/CTF rules to include, among others, all types and categories of cryptoasset service providers, crowdfunding service providers falling outside the scope of the EU Crowdfunding Regulation ((EU) 2020/1503), mortgage credit intermediaries and consumer credit providers that are not financial institutions.

The Commission has also published an impact assessment, FAQs and a factsheet to accompany the legislation. The proposals will now be considered by the European Parliament and the Council of the EU. The full AML/CTF rulebook, including technical standards, is expected to be in place and apply by the end of 2025.

Proposal for a Regulation on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing (COM(2021) 420 final)

Proposal for a Regulation establishing the Authority for Anti-Money Laundering and Countering the Financing of Terrorism and amending Regulations (EU) 1093/2010, (EU) 1094/2010 and (EU) 1095/2020 (COM(2021) 421 final)

Proposal for a Regulation on information accompanying transfers of funds and certain cryptoassets (recast) (COM(2021) 422 final)

Proposal for a Directive on the mechanisms to be put in place by the Member States for the prevention of the use of the financial system for the purposes of money laundering or terrorist financing and repealing Directive (EU) 2015/849 (COM(2021) 423 final)

FAQs

Impact assessment (SWD(2021) 190 final)

Factsheet

Press release: Beating financial crime: Commission overhauls anti-money laundering and countering the financing of terrorism rules

AMLA Webpage

Updated webpage

HM Treasury

AML/CFT in the UK - HM Treasury publishes call for evidence on review of regulatory and supervisory regime and consultation paper on MLR 2017 - 22 July 2021

HM Treasury has published a call for evidence on the review of the UK’s anti-money laundering and counter terrorist financing regulatory and supervisory regime. According to the press release, this is to be achieved by focussing on three key themes: (i) the overall effectiveness of the regimes and their extent (i.e. the sectors in scope as relevant entities); (ii) whether key elements of the current regulations are operating as intended; and (iii) the structure of the supervisory regime including the work of OPBAS to improve effectiveness and consistency of supervision.

The call for evidence does not seek to recommend significant changes to the operation of the Proceeds of Crime Act 2002 or other legislation, but states: “the Home Office also intend to consult shortly on a package of legislative proposals related to economic crime”.

HM Treasury has also published a consultation paper on potential amendments to the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (SI 2017/692) (MLR 2017), which will run in parallel to the review. The revisions proposed are designed largely to ensure that the UK continues to meet international standards set by the Financial Action Task Force. The consultation looks at potential changes in five areas:

  • changes in scope to reflect latest risk assessments;
  • clarificatory changes to strengthen supervision;
  • expanded requirements to strengthen the regime;
  • information sharing and gathering; and
  • transfers of cryptoassets.

Any amendments adopted subject to this or subject to further internal consideration will be taken forwards through secondary legislation due to be laid in spring 2022. The consultation closes on 14 October 2021. A final report setting out the findings of the review and options for reform will be published no later than 26 June 2022.

Call for Evidence: Review of the UK’s AML/CFT regulatory and supervisory regime

Call for Evidence webpage

Consultation paper: Amendments to the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 Statutory Instrument 2022

Consultation paper webpage