MLD4—key provisions for financial services firms—one minute guide
MLD4—key provisions for financial services firms—one minute guide

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

  • MLD4—key provisions for financial services firms—one minute guide
  • Background to MLD4
  • UK implementation of MLD4
  • Brexit
  • Scope of MLD4 and the MLRs
  • Obliged entities/relevant persons
  • Risk assessments, controls and procedures
  • Customer due diligence (CDD)
  • Simplified due diligence (SDD)
  • Enhanced due diligence (EDD)
  • More...

BREXIT: 11pm (GMT) on 31 December 2020 (‘IP completion day’) marked the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. Following IP completion day, key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see: Brexit and financial services: materials on the post-Brexit UK/EU regulatory regime.

Background to MLD4

The Fourth Anti-Money Laundering Directive (EU) 2015/849 (MLD4) was adopted by the European Parliament on 20 May 2015, becoming effective on 25 June 2015, providing the basis of the European Union’s anti-money laundering (AML) and counter terrorist financing (CTF) laws. It replaced the Third Anti-Money Laundering Directive (2005/60/EC) (MLD3) and the related implementing Directive (2006/70/EC).

The MLD4 package was introduced with the following legislation:

  1. Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, amending Regulation (EU) No 648/2012 of the European Parliament and of the Council, and repealing Directive 2005/60/EC (MLD3) of the European Parliament and of the Council and Commission Directive 2006/70/EC

  2. Regulation (EU) 2015/847 (WTR2) of the European Parliament and of the Council of 20 May 2015 on information accompanying transfers of funds

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