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EU with new Anti Money Laundering Directive within two months.

European Security News.- Money laundering in Europe

European Security News.- Money laundering in Europe

The European Parliament will vote on proposed amendments to the fourth Anti-Money Laundering (AML) Directive over the next two months. The main topic of debate has been on whether beneficial ownership information for companies, trusts etc., will be collected in public registers that requires transparency across all EU Member States.

The issue being that anonymous shell companies and trusts play a central role in laundering money, concealing the identity of corrupt individuals and irresponsible businesses involved in activities including the trafficking of arms, drugs and people, the theft of public funds, and tax evasion.

This deprives all governments of resources that could otherwise be invested in improving public services and stimulating inclusive economic growth.  However both the LIBE (Civil Liberties, Justice and Home Affairs) and ECON (Economic Monetary Affairs) committees are due to vote on February 13 and a plenary vote is tentatively scheduled for March 11, according to Transparency International.

Creating public registers of beneficial ownership (for companies, trusts and other legal structures) is not a “silver bullet” for tackling money laundering, and should not serve as an excuse for ineffective enforcement of know-your-customer (KYC) policies by the EU banks and other related due diligence measures.

As a result, for the greater transparency of beneficial ownership, governments and financial authorities will require banks and all other legal entities to go further and improve their KYC procedures. In particular, efforts are needed at EU level to improve information sharing between the EU Member States regarding politically exposed persons (PEPs), which are at high risk for money laundering and other illicit activities. GO TO SOURCE