EU gives US a run for its money with 5AMLD

Author: Jimmie Franklin | Published: 22 Aug 2019

Experts have said that recent proposals by regulators in the EU show that it is shoring up standards and more closely scrutinising potential instances of money laundering.

"I think it is fair to say that the EU is trying to level the playing field with the US, and toughen its regime," said Monsur Hussain, head of financial institution research at Fitch Ratings.

This coincides with the EU’s recent moves to impose reforms in member states. Its fifth Anti-Money Laundering Directive (5AMLD) must be transposed by each member state by January 2020.

KEY TAKEAWAYS

  • The EU has launched a new AML directive this year which expands its powers;
  • This is viewed as an attempt to toughen their regime and gain ground on the US;
  • AML expected to be on the regulatory horizon for the foreseeable future.

The directive makes some significant changes to 4AMLD, which has been in place since...