LexisNexis® Risk Solutions, the global analytics provider, is today reacting to the European Commission’s announcement that it is preparing to clamp down on those countries who have failed to implement the 5th Anti-Money Laundering Directive (5MLD), by issuing a guide to help firms comply with new rules.
LexisNexis Risk Solutions recognises that many firms have struggled to implement the new requirements of 5MLDwhich came into force on 10th January 2020. Due to both time pressures, and the lack of understanding around the new rules and what they entail. To help compliance teams safeguard their business, and avoid hefty fines from the regulator for non-compliance, LexisNexis Risk Solutions’ guide outlines the changes introduced by 5MLD and how they can ensure they meet the required standards.
Prompted by events including the Panama Papers leaks, increased money laundering risks of cryptocurrencies and significant changes to the nature and frequency of terrorist attacks, the EU is cracking down on money laundering and terrorist financing with 5MLD.
In light of widespread non-compliance, the European Commission is currently planning to launch infringement procedures next month to ensure that all countries and companies are implementing and complying with the new rules. Therefore, LexisNexis Risk Solutions guide outlines key areas of the Directive that businesses must account for in order to comply with new rules:
Michael Harris, Director, Financial Crime Compliance and Reputational Risk at LexisNexis® Risk Solutions says:
“Underground financial crime networks are one of the most insidious threats we face today. With such a broad financial landscape, criminals have more channels than ever to exploit and abuse, resulting in greater risks to society. 5MLD seeks to mitigate some of these risks and bring together firms in all EU jurisdictions to work towards a common goal of reducing financial crime - and it’s clear that the EU is committed to reaching this goal.
Until now, digital currencies have been unchartered waters for regulators. Greater controls are welcome, and organisations need to take all necessary precautions to become compliant ahead of January. Failure to comply will have wide-reaching ramifications, both for organisations and society, so firms must leave no stone unturned when it comes to meeting the obligations of 5MLD. We also fully expect that further regulatory updates will quickly follow - we’re not done yet.”