INTRODUCTION
Directive 2005/60/EC (hereinafter referred to as the Third AMLD) sets out the framework designed to protect the soundness, integrity and stability of credit and financial institutions (FIs) and confidence in the financial system as a whole, against the risks of money laundering (ML) and terrorist financing (TF). The EU rules are to a large extent based on international standards adopted by the Financial Action Task Force (FATF) and, as the Directive follows a minimum harmonisation approach, the framework is completed by rules adopted at national level.
The FATF has undertaken a fundamental review of the international standards, which culminated in the adoption of a new set of recommendations in February 2012. In parallel to the international process, the European Commission has been undertaking its own review of the European framework. This review has comprised an external study published by the Commission on the application of the Third AMLD (hereafter the Deloitte study), extensive contacts and consultations with private stakeholders and civil society organisations, as well as with representatives of EU Member State regulatory and supervisory authorities.
The Third AMLD tasked the Commission with presenting an implementation report to the European Parliament and Council, including specific examination of the treatment of lawyers and other independent legal professionals (Article 42). Another report was requested on the threshold percentages with respect to the identification of beneficial owners (Article 43).
The purpose of this report is threefold:
1. to provide feedback from the Commission’s review process on how the Directive has been applied;
2. to fulfil the obligations set out in Articles 42 and 43 of the Third AMLD;
3. to consider the need for possible changes to the framework in light of both the Commission’s own findings as well as the newly adopted international standards.
Following the adoption of this report, the Commission invites all interested stakeholders, to provide it with their feedback. The Commission intends to proceed with preparation of legislative texts with a view to adoption in autumn 2012.
Detailed report link: here