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KYC/AML Compliance

On 30 May 2018, Directive (EU) 2018/843 amending Directive (EU) 2015/849 on the prevention of the use of the financial system for money laundering or terrorist financing, and amending Directives 2009/138/EC and 2013/36/EU (5AMLD) was adopted. This Directive should take effect by 10 January 2020.

 

The fifth AMLD is to reinforce the European Union's (EU) legislative framework in combating money laundering and countering the financing of terrorist activities (ML/TF). This amends the fourth Anti-Money Laundering Directive (4AMLD). The 4AMLD was a major step forward in improving the effectiveness of the EU’s efforts to combat ML/TF. 

 

The Fifth AMLD introduce a formalized EDD approach.

The fourth AMLD outlined the factors to be considered when performing EDD. However, it did not go to the extent of clarifying the nature of EDD measures. This resulted in several disparities in the application of EDD measures and could potentially lead to failures in efficiently detecting suspicious transactions involving third countries. 

The fifth AMLD addressed these regulatory discrepancies by requiring member states to apply a minimum set of predefined EDD requirements that entities will have to apply in these instances. This formalized approach will reduce any differences in the application of regulatory requirements between member states and ultimately between entities, harmonizing these measures on an EU level. 

Ren Technology Services solution will seek to address financial crimes with increased speed and accuracy for Trust and Company service providers during the compliance screening process. Businesses would be able to utilize and adapt our solutions to their preferred risk tolerance and execute media screening to manage regulatory risk.