Anti-Money Laundering Bulletin - Winter 2019


DLA Piper’s Financial Services Regulatory team welcomes you to the January 2019 edition of our Anti-Money Laundering (AML) Bulletin.

In this issue, we provide updates on AML developments in the UK and internationally in the Financial Services Sector. We offer the latest updates on Brexit, including the anti-money laundering and counterterrorist financing aspects of the Political Declaration on the future UK-EU relationship and we look at the steps that firms need to take in preparation of a ‘no-deal’ Brexit.

In the EU, we comment on recent enforcement action taken by the European Commission against Member States for not implementing on time the fourth Anti-Money laundering Directive and we discuss the next steps to reinforce AML supervision at an EU level in response to recent money laundering cases involving the EU banking sector. We also examine the guidance of the Financial Action Task Force for applying a risk-based approach to AML supervision for the securities sector as well as its mutual evaluation report for the UK.

We hope that you find this update helpful. Your feedback is important to us, therefore if you have any comments or would like further information, please contact one of our specialists listed at the end of the Bulletin.

Highlights from this month's issue include:

Draft Money Laundering and Transfer of Funds (Information) (Amendment) (EU exit) Regulations 2018 published

On 29 November 2018, HM Treasury published a draft version of the Money Laundering and Transfer of Funds (Information) (Amendment) (EU Exit) Regulations 2018, which has been laid before Parliament for approval, along with an Explanatory Memorandum. This statutory instrument forms part of the UK government's contingency measures in preparation of a no-deal Brexit, also known as 'onshoring'. The aim is to ensure that the UK anti-money laundering and counter-terrorist financing regime operates efficiently in all possible scenarios.

Commission refers Luxembourg to the Court of Justice for not completely implementing MLD4

On 8 November 2018, the European Commission referred Luxembourg to the Court of Justice of the European Union for failing to fully transpose the fourth Anti-Money Laundering Directive (MLD4) into national law. On the same day, the Commission also sent Estonia a reasoned opinion and Denmark a letter of formal notice to assess compliance with MLD4.

FATF publishes guidance for a risk-based approach in anti-money laundering supervision for the securities sector

On 26 October 2018, the Financial Action Task Force (FATF) published a Risk-Based Approach Guidance for the securities sector. The RBA Guidance was produced, following a public consultation in July 2018, in collaboration with the private sector and incorporates input from the industry. It is non-binding and clarifies how securities providers as well as supervisors should apply a RBA in managing Money Laundering and Terrorist Financing risks.

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