The European Commission has adopted a proposal to further reinforce EU rules on anti-money laundering to counter terrorist financing and increase transparency about who really owns companies and trusts.
It highlighted the need for the EU to take further measures and step up its fight against money laundering and terrorism financing in light of the recent terrorist attacks and the Panama Papers revelations.
On 5 July 2016, the European Commission adopted a proposal for amending Directive (EU) 2015/849 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing (the “4th AMLD”).
The proposal sets out a number of measures to better counter the financing of terrorism and to ensure increased transparency of financial transactions and of corporate entities under the 4th AMLD currently in force.
The problems identified are, among others:
- unclear and uncoordinated customer due diligence requirements, resulting in less efficient