From changes to politically exposed persons (PEP) to beneficial ownership registers, the newly enforceable Fourth Anti-Money Laundering Directive (4MLD) will force a due diligence rethink, warn Lisa Osofsky, managing director and Sarah Adenaike of Exiger LLC
Efforts to tackle global money laundering step up several gears from 26 June this year with new UK legislation coming into force driven by the EU’s Fourth Anti-Money Laundering Directive (also know as 4MLD) and accompanying Fund Transfer Regulation (FTR). These will pile the pressure on both banks and all manner of professional advisers handling client money to ramp up their due diligence checks on the sources of money running through their accounts.
The Fourth Anti-Money Laundering Directive applies to a broad scope of financial institutions, casinos and dealers in high value goods. Stand-out changes to UK domestic law include a broader definition of a politically exposed person – known in the industry as PEPs – to formally encompass persons entrusted with a public position domestically, as well as domestic politically exposed persons who work for international organisations.
T
