Registers to show who really stands behind a company
Under the anti-money laundering directive (AMLD), as amended by MEPs, a public central register in each EU country would list information on the ultimate beneficial owners of all sorts of legal arrangements, including companies, foundations, holdings and trusts.
These registers would be interconnected across the EU and would be “publicly available following prior identification of the person wishing to access the information through basic online registration”, MEPs say. They nonetheless inserted several provisions in the amended AMLD to protect data privacy and to ensure that only the minimum information necessary is put in the register.
Watch out for dodgy transactions…
The proposed rules would require banks, financial institutions, auditors, lawyers, accountants, tax advisors and real estate agents, among others, to be more vigilant about suspicious transactions made by their clients. Casinos are included in the scope of the draft rules, but other gambling services posing a low risk may be excluded by member states.
The amended AMLD provides for a risk-based approach, enabling member states to better identify, understand and mitigate money laundering and terrorist financing risks. Parliament also voted on the Transfer of Funds Regulation, which aims to improve the traceability of payers and payees and their assets.
… and politically-exposed persons
The rules on “politically-exposed persons”, i.e. people at a higher than usual risk of corruption due to the political positions they hold, are extended to “domestic” politically-exposed persons. These people are those who are or have been “entrusted by the member state with prominent public functions”, such as heads of state, members of government, supreme court judges, and members of parliaments.
In case of high-risk business relationships with such persons, additional measures should be put in place, e.g. to establish the source of wealth and source of funds involved.
Official press release link: click here