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Document 32015L0849

Title and reference
Preventing abuse of the financial system for money laundering and terrorism purposes

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Dates
  • Date of last review: 16/11/2015
  • Initial creation date: 16/11/2015
Summarized and linked documents
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  • Author: Publications Office
Text

Preventing abuse of the financial system for money laundering and terrorism purposes

SUMMARY OF:

Directive (EU) 2015/849 — preventing the use of the financial system for money laundering and terrorism

SUMMARY

WHAT DOES THIS DIRECTIVE DO?

It is designed to combat money laundering* and the financing of terrorism* by preventing the financial market from being misused for these purposes.

It seeks to strengthen EU rules and to ensure their consistency with the global standards laid down in the international recommendations adopted by the Financial Action Task Force (FATF).

KEY POINTS

The directive applies to the financial sector and certain other actors such as lawyers, providers of gambling services and traders in goods (e.g. precious metals and stones), when payments of €10,000 or more are made in cash.

Those subject to the directive need to:

identify and verify the identity of their customers and of the beneficial owners of their customers, for example, the identity of the person who ultimately owns or controls a company;

report suspicions of money laundering or terrorist financing to the public authorities, usually the financial intelligence unit;

take supporting measures, such as ensuring the proper training of personnel and the establishment of appropriate internal preventive policies and procedures;

take additional safeguards such as enhanced customer due diligence for situations of higher risk such as trading with banks situated outside the EU.

Information on the beneficial ownership of companies will be stored in a central register, accessible to relevant bodies such as financial intelligence units.

The directive is part of a package of EU legislative measures aimed at preventing money laundering and terrorist financing that includes Regulation 2015/847 on information on the payer accompanying transfers of funds.

The directive is part of a broader EU strategy to tackle financial crime that also includes the work of:

an Expert Group on Money Laundering and Terrorist Financing that meets regularly to exchange views and assist the Commission in the preparation of legislation or in policy definition;

a Committee on the Prevention of Money Laundering and Terrorist Financing that may provide opinions on implementing measures proposed by the Commission;

As a part of this EU strategy, it also gives the Commission the task of conducting a supranational assessment of the money laundering and terrorist financing risks that could affect the EU’s internal market.

WHEN DOES THIS DIRECTIVE APPLY?

From 25 June 2015. It should be transposed into EU countries’ national law by 26 June 2017.

BACKGROUND

KEY TERMS

*Money laundering — the conversion of the proceeds of crime into apparently clean funds, usually via the financial system, for example by disguising the sources of the money, changing its form or moving the funds to a place where they are less likely to attract attention.

*Terrorist financing — the provision or collection of funds intended to be used to carry out terrorist offences.

ACT

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 (OJ L 141, 5.6.2015, pp. 73-117)

RELATED ACTS

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 (OJ L 141, 5.6.2015, pp. 1-18)

last update 16.11.2015

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