European Institute of Management and Finance | AML 4th Directive: A Legal Overview
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AML 4th Directive: A Legal Overview

AML 4th Directive: A Legal Overview

The 4th EU AML Directive was enacted on the 25th of June 2015 and had to be fully transposed by member states by the 26th of June 2017. It repealed the 3rd EU AML Directive introducing stricter rules and shifting the focus to a more risk-based approach.

 

By making significant changes to the existing regulatory framework, EU member states aimed in becoming more reactive to the constantly evolving threat of Money Laundering and Terrorist Financing and in better shielding the integrity of financial markets.

 

To face this ever growing threat and before even member states fully implemented the 4th AML Directive, the Commission started discussing and finally proposed a 5th AML Directive, which in April 2018 the EU Parliament decided to adopt.

 

 

Objectives

 

In this seminar, Participants should be able to gain an understanding of the basic principles of Anti- Money Laundering and the Laws, Regulations and Guidelines put in place to respond. The measures and procedures that should be applied to mitigate the risk of Money Laundering and the relevant Authorities approach.  A critical analysis of how the 4th EU AML Directive affected the existing rules and principles.

 

 

Course Content

 

  • AML Laws & Regulations: Historical Development, Scope & Application.
  • What is Money Laundering, Definition & the Stages of Money Laundering.
  • The ‘Risk- Based’ approach. The main focus of the 4th
  • Common Steps to Ensuring Compliance, the Time & Recourses needed, the drafting and implementation of Internal AML Manuals, Policies & Procedures, the implementation of an internal Reporting System to the AMLCO & the BOD and externally to CYSEC & MOCAS, drafting of systems for Ongoing Compliance Monitoring, Record Keeping and other.
  • Customer Due Diligence & KYC. Description of the Simplified / Enhanced Due Diligence, the Documentation Requirements, Verification of client information and the Certification of Documents
  • How to Build the Economic Profile of the client, source of wealth, source of funds, internal assessment of information, supporting documents, transactions monitoring
  • How Authorities Approach AML: Fines, Penalties, Reputational damage, the ‘name and shame’ process
  • The Compliance Function: Duties and Responsibilities of the AMLCO and the Board of Directors
  • The 4th AML shift of focus. Critical Analysis of 10 significant changes brought by the 4th AML:
  • Risk Based shift in focus against the ‘tick a box’ approach
  • PEPs definition and status
  • Cash Payment Thresholds
  • The Ultimate Beneficial Owner definition under the 4th AML
  • National Central Register
  • Tax Crime and Tax Criminal Activity
  • Sanction and Penalties
  • Third Country Equivalence
  • Group- Wide Compliance
  • The 5th AML Directive: the core goals and what to expect

 

 

Who should attend

 

AML Professionals and Compliance Officers employed in Financial Institutions, Credit Institutions, CIFs, Ifs and Funds. Also, Fund Managers, Fund Administrators and other Professionals who wish to refresh their knowledge on AML, such as Lawyers, Accounting Firms and Corporate Service Providers.