Anti-Money Laundering (AML), Know Your Customer (KYC), Sanctions And Embargoes
What will the impacts of the fourth AML EU directive (2015/849) implementation be ?Since 1991, European Union regularly ...

Anti-Money Laundering (AML), Know Your Customer (KYC), Sanctions And Embargoes

What will the impacts of the fourth AML EU directive (2015/849) implementation be ?

Since 1991, European Union regularly implement new anti-money laundering directive. On the 20th of May 2015, the European Parliament and the Council issue 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 in 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 institution and other submitted companies as local regulators do not hesitate anymore to impose huge fines and mandatory corrective measure in a short period. The financial loss due to AML deficiencies is no more a residual risk and 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-dated with the latest issues from 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 clear understanding in what "good" looks like within the different business lines and cross-border 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.
Many companies could find themselves in a difficult situation in case of regulatory sanctions. Our professionals can support your business and provide solutions to your case. Our experts are ready to provide you with more information regarding how you can conduct safe business and cover international sanctions and embargoes.
Piet De Vreese - Pideeco Network Partner
Piet De Vreese Managing Director
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