The European Commission today released the draft of the 4th European Money Laundering Directive (4th Directive). Key changes proposed in the new directive are:

• the requirement for all law firms to have written risk assessments, policies and procedures as well as process for testing their effectiveness
• enhanced due diligence for politically exposed persons (PEPs) is extended to those who are beneficial owners, those holding high level political positions in the UK, and PEPs who have left office in the last 18 months
• financial and credit institutions and other organisations covered by anti-money laundering requirements have not been included on the list of clients likely to be low risk, and
• every company, legal entity and trust will be required to hold adequate, accurate and up-to-date information about their beneficial owners.

Read our early analysis of the new directive
Read the draft directive in full