New anti-money-laundering rules

What are the EU’s Fourth Anti-Money-Laundering Directive requirements, and how might they affect your company? We offer a snapshot view… and a solution.

As part of a drive to combat money laundering, tax avoidance and funding for terrorist activities, the European Union has recently introduced the Fourth Anti-Money-Laundering Directive (4AMLD), building on the requirements of its predecessor, 3AMLD.

Under these Anti-Money-Laundering Regulations, consumers must identify themselves to regulated sector businesses, including:

  • FSA-regulated firms such as Banks, Insurance Companies, Investment firms and Brokers
  • Lawyers, Accountants and Tax Advisers
  • Those offering foreign exchange or cheque cashing services
  • Estate Agents
  • Any business which accepts cash payments of €15,000 or more

For UK companies, this has usually involved electronic searches of databases such as credit files and electoral rolls. In Europe, there has traditionally been a more manual process, involving notarised documents. But, with electronic databases increasingly vulnerable because of the complexity of internet security, and the inconvenience of hard copy documentation, this means it’s not really a viable alternative and stronger controls have been implemented under 4AMLD.

Continuing ‘Know Your Customer’ (KYC) due diligence is now required, together with continuous transaction monitoring, to ensure 4AMLD compliance.

Creditsafe’s new Compliance Search product is a fuss-free solution to fulfilling the requirements of the new regulations. It enables companies to run a variety of database searches on individuals and businesses, including:

 Adverse Media

  • Global adverse media (over 10,000 sources)
  • Criminal convictions within the confines of the legislation in appropriate jurisdictions
  • Industry and other commercial or specialist sources
  • UK Companies House and corporate registers from across the world
  • UK insolvents and bankrupts lists
  • Disqualified directors database
  • England & Wales Charities Commission
  • UK Local Register

Global Compliance

  • Financial regulators e.g. UK Financial Conduct Authority
  • Law enforcement e.g. Interpol, Europol, the FBI, other national police wanted lists
  • Restrictive trading e.g. US Securities and Exchange Commission

PEP Databases

  • Individuals
  • PEP Related Legal Entities
  • State-owned Enterprises

Sanctions

  • HMT Sanction Regimes
  • OFAC & Bureau of International Security and Non-Proliferation Sanctions
  • UNSC Resolutions
  • EU Restrictive Measures
  • Plus National / Unilateral Restrictive Measures (where applicable)

In addition, a continuous monitoring facility is available, on monthly contract – which boasts the benefit of bulk importing.

To find out more about how Compliance Search can help your company meet the new 4AMLD regulations, please call Laura Prime on 01279 722555.

 

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