EU Commission plans amendments to 3rd Anti-Money Laundering Directive –  The European Commission is planning amendments to the 3rd Anti-Money Laundering Directive (2005/60/EC) (the “Directive”) for the purpose of implementing the new standards adopted by the Financial Action Task Force (FATF).

The new FATF standards are aimed at strengthening global safeguards and protecting the integrity of the financial system against money laundering and terrorist financing.  The main changes in the new standards are:

1. Combating the financing of the proliferation of weapons of mass destruction through the consistent implementation of targeted financial sanctions when these are called for by the UN Security Council;
2. Improved transparency to make it harder for criminals and terrorists to conceal their identities or hide their assets behind legal persons and arrangements;
3. Stronger requirements when dealing with politically exposed persons (PEPs);
4. Expanding the scope of money laundering predicate offences by including tax crimes;
5. An enhanced risk-based approach which enables countries and the private sector to apply their resources more efficiently by focusing on higher risk areas;
6. More effective international cooperation including exchange of information between relevant authorities, conduct of joint investigations, and tracing, freezing and confiscation of illegal assets; and
7. Better operational tools and a wider range of techniques and powers, both for the financial intelligence units, and for law enforcement to investigate and prosecute money laundering and terrorist financing.

FATF has set the end of 2013 as the deadline within which it expects implementation of the new standards.