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

 

SUMMARY OF:

Directive (EU) 2015/849 — prevention of the use of the financial system for the purposes of money laundering or terrorist financing

WHAT IS THE AIM OF THE DIRECTIVE?

KEY POINTS

The directive applies to:

The directive specifies the following actions.

Those subject to the directive must:

Amendment to Directive (EU) 2015/849

After a series of terrorist attacks in Europe in 2016, Directive (EU) 2018/843 (5th Anti-Money Laundering Directive, 5AMLD) amending Directive (EU) 2015/849 was adopted in 2018. The amending directive had to become law in the Member States by 10 January 2020. The new directive tightens the EU’s rules on preventing money laundering and terrorist financing in a number of ways, including:

Supplement to Directive (EU) 2015/849

Delegated Regulation (EU) 2019/758 lays down a set of additional measures, including minimum action, that credit and financial institutions must take to effectively handle the money laundering and terrorist financing risk where a non-EU country’s law does not permit the implementation of group-wide policies and procedures at the level of branches or majority-owned subsidiaries that are part of the group and established in the non-EU country.

Amendment to Directive (EU) 2015/849

Directive (EU) 2019/2177 amends Directive (EU) 2015/849 to take into account amendments made to Regulation (EU) No 1093/2010 setting up the European Banking Authority (see summary) — giving it a new mandate in preventing the use of the financial system for the purposes of money laundering and terrorist financing and in leading, coordinating and monitoring the efforts of all EU financial services providers and competent authorities in this domain, effective as of 1 January 2020.

FROM WHEN DOES THE DIRECTIVE APPLY?

Directive (EU) 2015/849 has applied since 25 June 2015 and was originally supposed to become law in the Member States by 26 June 2017. This deadline was, however, further extended by several amendments, in particular Directive (EU) 2018/843, which had to be fully incorporated into Member States’ national law by 10 January 2020.

BACKGROUND

The directive is part of a package of EU legislative measures aimed at preventing money laundering and terrorist financing that includes Regulation (EU) 2015/847 on the traceability of money transfers (see summary). It is also part of a broader EU strategy to tackle financial crime that includes the work of:

For more information, see:

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 supply or collection of funds intended to be used to carry out terrorist offences.
Beneficial owner. The person who ultimately owns or controls a company.

MAIN DOCUMENT

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).

Successive amendments to Directive (EU) 2015/849 have been incorporated in the original text. This consolidated version is of documentary value only.

RELATED DOCUMENTS

Commission Recommendation (EU) 2020/1039 of 14 July 2020 on making State financial support to undertakings in the Union conditional on the absence of links to non-cooperative jurisdictions (OJ L 227, 16.7.2020, pp. 76–79).

Report from the Commission to the European Parliament and the Council on the assessment of the risk of money laundering and terrorist financing affecting the internal market and relating to cross-border activities (COM(2019) 370 final, 24.7.2019).

Report from the Commission to the European Parliament and the Council assessing the framework for cooperation between Financial Intelligence Units (COM(2019) 371 final, 24.7.2019).

Commission Delegated Regulation (EU) 2019/758 of 31 January 2019 supplementing Directive (EU) 2015/849 of the European Parliament and of the Council with regard to regulatory technical standards for the minimum action and the type of additional measures credit and financial institutions must take to mitigate money laundering and terrorist financing risk in certain third countries (OJ L 125, 14.5.2019, pp. 4–10).

Report from the Commission to the European Parliament and the Council on the assessment of the risk of money laundering and terrorist financing affecting the internal market and relating to cross-border activities (COM(2017) 340 final, 26.6.2017).

Commission Delegated Regulation (EU) 2016/1675 of 14 July 2016 supplementing Directive (EU) 2015/849 of the European Parliament and of the Council by identifying high-risk third countries with strategic deficiencies (OJ L 254, 20.9.2016, pp. 1–4).

See consolidated version.

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).

See consolidated version.

Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC (OJ L 331, 15.12.2010, pp. 12–47).

See consolidated version.

last update 27.10.2021