(The below is a high level review of certain potential issues and is not to be relied upon in any definitive manner nor as legal and/or regulatory advice.)
Anti-money laundering and counter terrorism financing laws continue to evolve in the EU and this is highlighted by the following laws being published in the EU Official Journal on 5 June 2015:
- The forth Anti-Money Laundering Directive (4MLD) – formally known as Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, amending Regulation (EU) No 648/2012 of the European Parliament and of the Council, and repealing Directive 2005/60/EC of the European Parliament and of the Council and Commission Directive 2006/70/EC, and
- Wire Transfer Regulations 2 (WTR2) – officially referred to as Regulation (EU) 2015/847 of the European Parliament and of the Council of 20 May 2015 on information accompanying transfers of funds and repealing Regulation (EC) No 1781/2006
Why should 26 June 2017 be known as EU AML Day?
WTR2 applies from 26 June 2017 (Reg 27) and 4MLD is to also be transposed into national Member State law by this date (Art. 67).
Why is 26 June 2017 noteworthy?
On this date, both the 4MLD and WTR2 will likely require a change to the compliance operations of the numerous entities within their scope. There is an allowance of approx 2 years from the EU Official Journal publication date – but as compliance teams in many businesses know – booking resources can be a time consuming and challenging process. Many will need this time to implement any necessary changes – the countdown is now formally underway.
What changes are required for electronic money issuers?
Both the 4MLD and WTR2 are relevant to electronic money issuers and in some key aspects change the way the obligations of the laws they supersede apply. Please click on the relevant links which follow for a high level examination of the key changes that may apply to e-money issuers under the 4MLD and WTR2.