The European Commission has released a Delegated Regulation (EU) 2019/758 of 31 January 2019.
Supplementing the Fourth Money Laundering Directive ((EU) 2015/849) (MLD4) with regard to regulatory technical standards for the minimum action and the type of additional measures credit and financial institutions must take to mitigate money laundering and terrorist financing risk in certain third countries.
Credit institutions and financial institutions are required to identify, assess and manage the money laundering and terrorist financing risk to which they are exposed, particularly when they have established branches or majorityowned subsidiaries in third countries or because they are considering whether to establish branches or majorityowned subsidiaries in third countries. Directive (EU) 2015/849 therefore sets standards for the effective assessment and management of money laundering and terrorist financing risk at group level.
The Delegated Regulation sets out:
• Article 1 – Subject matter and scope
• Article 2 – General obligations for each third country
• Article 3 – Individual risk assessments
• Article 4 – Customer data sharing and processing
• Article 5 – Disclosure of information related to suspicious transactions
• Article 6 – Transfer of customer data to Member States
• Article 7 – Record-keeping
• Article 8 – Additional measures
• Article 9 – Entry into force
The Delegated Regulation will enter into force on the twentieth day following that of its publication in the Official Journal of the European Union, 3rd June 2019. It will apply from 3rd September 2019.
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Please Note: This publication is not intended to be a comprehensive review of all developments in the law and practice, or to cover all aspects of those referred to. Readers should take legal advice before applying the information contained in this publication to specific issues or transactions.