EU Anti-Money Laundering Developments: Fifth Directive Published and Sixth Directive Imminent

22 June 2018
View Debevoise Update

Key takeaways:

  • The EU’s Fifth Money Laundering Directive (MLD 5) will enter into force on 9 July, bringing relatively limited changes to anti-money laundering laws. MLD 5 requires additional categories of organisations to comply with EU anti-money laundering rules, specifies the enhanced due diligence steps to be taken when dealing with customers in high-risk third countries, and provides for wider access to beneficial ownership information.
  • The UK has opted out of adopting the Sixth Money Laundering Directive (MLD 6), but for other EU member states, it is likely to have a significant impact on their criminal legislation. MLD 6 gives member states broad jurisdiction in relation to money laundering, details the predicate offences to money laundering, expands the scope of money laundering offences, increases penalties and provides for corporate criminal liability.