5. Geldwäscherichtlinie | 5th Anti-Money Laundering Directive

Draft law to implement the 5th Anti-Money Laundering Directive – what is coming and what will remain the same?

On 20 May 2019, the German Federal Ministry of Finance (BMF) presented its draft for the implementation of the 5thAnti-Money Laundering Directive. The member states have to implement the 5th Anti-Money Laundering Directive (5AMLD) by 10 January 2020. However, the law will already come into force on 1 January 2020.

Of particular interest to PayTechLaw are the changes proposed by the 5AMLD concerning the German Anti-Money Laundering and Banking Act. Below is a brief overview of some of the proposed rules:

The 5th Anti-Money Laundering Directive extends the circle of obliged entities by adding the following:

  • exchange platforms for virtual currencies
  • wallet providers
  • payment and e-money institutions domiciled abroad who provide domestic services via distribution assistants (“agents”)
  • “lease agents” for brokering lease agreements where the monthly rent is at least 10,000 euros or if they have certain suspicious characteristics
  • art warehouse keepers (only in customs-free zones) with a transaction value of 10,000 euros or more
  • all key service providers in tax matters

The rules contained in the 5AMLD on the transparency register provide for even more transparency: While retaining the current inspection procedure, in future “all members of the public” may take a look at the transparency register. Additionally, the nationality of the beneficial owner has to be stated.

And while we’re on the topic of registers: The 5AMLD obliges members states to draw up lists by 10 January 2020 containing concrete functions and roles that provide reasons for the status of politically exposed persons (PEP) and to present these lists to the Commission. This will subsequently form the basis for an EU-wide list.

In addition, the 5th Anti-Money Laundering Directive standardises the increased due diligence obligations regarding high-risk countries.

If you would like to get a detailed overview of the new rules contained in the 5AMLD, PayTechLaw has incorporated all changes into the current text of the German Anti-Money Laundering Act (GwG) and the German Banking Act (KWG) together with the BMF’s reasons.

The 5th Anti-Money Laundering Directive: what is coming and what will remain the same? You can read everything here (German).

 

Cover picture: Copyright © fotolia / nerksi

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