The European Union 4th Anti-Money Laundering Directive has been officially published in the European Journal. The scope of the 4th Directive is wider than its predecessor and covers all gambling services, it will review and revamp the UK Money Laundering Regulations which were established 2007.
The 4th Directive will, however, allow Member States to exempt sectors on the basis of proven low risk posed by the nature and scale of their services. HM Treasury is responsible for making any such determination on the basis of ‘appropriate risk assessment’.
The Directive was formally adopted on 5 June triggering a two year process during which member states will incorporate the requirements into domestic law. HM Treasury lead for the UK and anticipate laying a new set of Money Laundering Regulations in the autumn of 2016 with the aim that these come into force in June 2017.
The Treasury intend to consult on any proposals in this area as part of the wider work to implement the Directive and all stakeholders will have the opportunity to contribute. The Commission expects to provide advice on the nature and level of money laundering risk in line with our statutory role to advise the Government on gambling and its regulation. Any determination of risk is likely to include not only the vulnerability to money laundering but also the presence and effectiveness of controls to mitigate it.
In addition to any consideration concerning proven low risk, the two year incorporation period provides opportunity for the industry to anticipate the requirements of the MLR. Operators will need to consider the provisions within their strategic and operational planning, as they develop appropriate capability, policy and procedures.