Implementation of 3rd AML Directive

Implementation of 3rd AML Directive, Anti-Money Laundering Training Dubai, Tax Evasion Fine by GAZT in Saudi Arabia

Implementation of 3rd AML Directive

Implementation of 3rd AML Directive: There are significant differences in the way the 3rd Anti-Money Laundering Directive has been implemented within the Eurozone and the EU as a whole.

Differences relating to CDD (including BOs) include:

  • Calculation of the 25% threshold for corporates;
  • Categories of persons considered to otherwise exercise control over corporate entities;
  • Calculation of the 25% threshold for legal entities;
  • Control and ownership structure;
  • Verification of identity;
  • High-risk indicators and enhanced due diligence;
  • Requirement to keep BO information up-to-date; and
  • Use of BO information obtained for CDD purposes.

Beneficial Owner

  • In the case of corporate entities the definition is clarified, and further guidance on how to identify beneficial ownership is outlined in the text.
  • In case of trusts and similar arrangements the settlor, trustee, protector, beneficiaries or class of beneficiaries (or similar positions) or any other person exercising control shall be regarded as a beneficial owner.

Politically Exposed Persons (PEPs)

  • Members of governing bodies of political parties will also be regarded as PEPs.
  • EDD will not be limited to PEPs residing in other Member States or foreign jurisdictions, but will also be applicable to domestic PEPs.

Customer Due Diligence

  • Simplified Due Diligence
    • No longer considered to mean “no CDD”.
    • Entirely risk-based.
    • Enhanced Due Diligence
    • Still mandatory in specific circumstances.
    • Inclusion of further specific circumstances where the application of EDD is mandatory (for example, domestic PEPs and certain complex transactions).
  • Reliance on third parties
    • No longer strictly rules-based.
    • Introduction of group-wide reliance.

Have a look at our training courses on Corporate Crimes/ Anti-Money Laundering and to get latest news on world view please visit FATF website.

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