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Risk-based regime to form backbone of new European money laundering directive, say sources

Feb 05 2013 Martin Coyle, Compliance Complete

A shift towards a more risk-based approach to anti-money laundering forms one of the central planks of the European Commission's new Fourth Money Laundering Directive (4MLD), which is due to be unveiled today. The changes are also likely to contain the inclusion of tax crimes as predicate offences, the tightening up of beneficial ownership, as well as amendments connected to politically exposed persons (PEPs). Sources said that the new directive, which is set to replace the existing Third Money Laundering Directive (3MLD), would require countries to undertake risk assessments of issues and take measures to offset those risks. The results of the risk assessments would need to be shared with other European Union countries. Firms operating in Europe would also need to identify, understand and offset their risks as well as document any risks they face. Firms will be held accountable for any decisions they make under the risk-based approach, the Commission will state. Countries will also

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