Proposals setting out a fourth European money laundering directive will be introduced early next month, the European Commission said. The Commission said details of the new directive will be introduced in Brussels on February 5, although that date has still to be confirmed. The proposals, which will need to be ratified by the European Parliament and the Council, will see the current Third Anti-Money Laundering Directive updated and replaced. The changes are expected to largely mirror those introduced by the global standard setter, the Financial Action Task Force (FATF) last February.

The Paris-based organisation scaled back its 40+9 Recommendations to a straight 40 and announced a shift towards a more risk-based approach to AML already largely used in the UK. FATF also made tax evasion a predicate offence and asked financial institutions to apply more stringent measures towards politically exposed persons (PEPs).