MLD5—key provisions for financial services firms—one minute guide
MLD5—key provisions for financial services firms—one minute guide

The following Financial Services practice note provides comprehensive and up to date legal information covering:

  • MLD5—key provisions for financial services firms—one minute guide
  • Adoption of MLD5 and implementation in the UK
  • Key provisions of MLD5
  • Designation of virtual currency platforms and custodian wallet providers as obliged entities
  • Setting lower maximum transaction limits for certain pre-paid instruments
  • Enabling FIUs to request information on ML and TF from any obliged entity
  • Central registers of payment and bank accounts and safe-deposit boxes
  • Harmonising the EU AML/CTF approach to high-risk third countries
  • Correspondent relationships
  • Improving access to beneficial ownership registers—corporates
  • More...

Brexit: As of exit day (31 January 2020), the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has entered an implementation period, during which it continues to be subject to EU law. This has an impact on this Practice Note.

Adoption of MLD5 and implementation in the UK

The Fifth Money Laundering Directive (EU) 2018/843, which amends the Fourth Money Laundering Directive (EU) 2015/849 (MLD4), was published in the Official Journal of the EU on 19 June 2018 and entered into force on 9 July 2018. Member States were required to transpose the new rules into national law by 10 January 2020.

MLD4 was implemented in the UK by the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, SI 2017/692 (2017 MLRs), which entered into force on 26 June 2017.

The 2017 MLRs have been amended by:

  1. the Money Laundering and Terrorist Financing (Miscellaneous Amendments) Regulations 2018, SI 2018/1337, which had effect from 10 January 2019, and

  2. the Money Laundering and Terrorist Financing (Amendment) Regulations 2019, SI 2019/1511, which implements MLD5 in the UK and had effect from 10 January 2020, apart from Regulation 5(5)(c), which applies from 10 July 2020, and Regulation 6, which applies from 10 September 2020

For detailed information on the terms in which MLD4 (as amended by MLD5) has

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