5th Money Laundering Directive – Update

On 14 May 2018 the European Council voted in favour of the proposed Fifth Money Laundering Directive namely the ‘Proposal for a Directive (EU) 2015/849 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing and amending Directive 2009/101/EC’ (“MLD5”). Save for minor drafting changes, the text adopted by the Council is the same as that adopted by the European Parliament on 19 April 2018.

MLD5 was drafted partly as a response to the terrorist attacks that shook Europe in 2015 and 2016 in Paris and Brussels, along with the Panama Papers leak which revealed the chink in the armour of the European Union’s fight against terrorist financing. MLD5’s twin aims – counteracting terrorist financing and increasing transparency of financial transactions – look to address these shortcomings by fine tuning the Fourth Money Laundering Directive which had a deadline for transposition a

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