On Thursday 19 April, the MEPs approved the inter-institutional agreement on the fifth proposed anti-money laundering directive, which was presented in response to the Panama Papers scandal and the terrorist attacks that hit Europe (see EUROPE 11927, 11924).
“Thanks to this legislation, it will be possible to really show who pulls the strings behind the opaque arrangements of letterbox companies and trusts. Greater transparency will make it easier to identify and prevent criminal activity, and also support the work of journalists investigating any malpractice”, said Judith Sargentini (Greens/EFA, Netherlands), in a press release.
Under the agreement, information on the beneficial owners of businesses operating in the EU will be public. Furthermore, individuals able to demonstrate a legitimate interest - such as journalists and non-government organisations - will be able to have access to data on the beneficial owners of trusts.
Stricter controls will be in place in the event of financial transactions involving persons from high-risk third countries.
The fifth directive also tightens up controls on certain means of payment that can be used for terrorist ends. Like banks, virtual currency trading platforms, such as Bitcoin, and storage providers who must be registered and apply due diligence measures on their clientele.
Holders of prepaid cards for the amount of €150 must now be identified, compared to a minimum of €250 at the moment.
It is worth noting that whistleblowers reporting cases of money laundering will enjoy ad hoc protection such as the right to anonymity. In this field, the Commission will present a draft directive on Monday 23 April with a view to protecting whistleblowers at European level (see EUROPE 12004).
Finally, there will be new national lists of positions occupied by 'politically exposed persons' (PEP), in other words individuals at a higher risk of money laundering due to their political positions. During the inter-institutional negotiations, Germany tried unsuccessfully to establish a distinction between European PEPs and third-country nationals.
The new rules will apply 18 months after their publication in the Official Journal of the EU, with a longer period for the transparency of the beneficial owners of trusts to come into force.
The special committee 'TAXE 3', which will continue to be active until the end of the term in office of the Parliament, has a mandate to monitor the transposition of the legislative reform in the member states (see EUROPE 11972). (Original version in French by Mathieu Bion)