A new European AML/CFT package
19 September 2024 _ Regulatory & compliance
Circular 21/782 amends Regulation (EU) No 648/2012 of the European Parliament and of the Council, and repeals Directive 2005/60/EC of the European Parliament and of the Council and Commission Directive 2006/70/EC1.
The revised guidelines provide guidance on the various money laundering and terrorist financing (ML/FT) factors that professionals should take into account when assessing their risks.
The revised Guidelines take into account new and emerging risks related to, for example, the use of RegTech solutions for CDD or terrorist financing purposes, and contain more guidance on the identification of beneficial owners and enhanced customer due diligence measures in relation to high risk third countries.
Furthermore, the Guidelines also specify how professionals can adjust AML/CFT customer due diligence measures according to the level of risk involved.
Finally, the guidelines also state that an effective risk-based approach should not lead to the systematic abandonment or discontinuation of the provision of services to certain categories of customers associated with a higher risk of money laundering and terrorist financing ("de-risking" approach) and that professionals should also balance the need for financial inclusion with the need to mitigate money laundering and terrorist financing risk
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