Money Laundering Directive 4 (MLD4)—essentials
Money Laundering Directive 4 (MLD4)—essentials

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

  • Money Laundering Directive 4 (MLD4)—essentials
  • MLD4, MLD5 and related EU measures
  • UK implementation of MLD4
  • Scope of MLD4 and the 2017 MLRs
  • Risk assessments, policies, controls and procedures
  • Customer due diligence (CDD)—general requirements
  • What CDD measures must be applied?
  • Additional CDD—life insurance and other investment-related insurance policies
  • Timing of verification
  • Simplified due diligence (SDD)
  • 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.

MLD4, MLD5 and related EU measures

The Fourth Money Laundering Directive (EU) 2015/849 (MLD4) was published in the Official Journal of the EU on 5 June 2015 together with the Second Wire Transfer Regulation (EU) 2015/847 (WTR2). Member States were required to transpose MLD4 into national law by 26 June 2017, which was the date of application of WTR2. MLD4 and WTR2 together updated and improved the EU's anti-money laundering (AML) and counter terrorist financing (CTF) regime.

For information on WTR2, see Practice Note: Second Wire Transfer Regulation (WTR2)—essentials.

The Fifth Money Laundering Directive (EU) 2018/843 (MLD5) was published in the Official Journal of the EU on 19 June 2018. Member States were required to transpose MLD5 into national law by 10 January 2020.

Directive (EU) 2019/1153 laying down rules facilitating the use of financial and other information for the prevention, detection, investigation or prosecution of certain criminal offences was published in the Official Journal of the EU on 11 July 2019 and is required to be transposed into national law by Member States by 1 August 2021. The

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