Member states have until 2017 to create national laws based on the directive’s rules. The AML Directive mainly applies to banks and other financial institutions as well as auditors and accountants. Other businesses affected by these rules include casinos, lawyers and real estate agents. Businesses which make or receive cash payments for goods worth at least EUR 10,000, regardless of whether payment is made via a single or a series of linked transactions, must also comply with these rules.
According to online media outlet Public Finance International, the directive also states that EU member states will be required to “keep central registers of information on the last ‘beneficial’ owners of corporate and other legal entities, as well as trusts, in a bid to ‘step up the fight’ against tax crimes and terrorist financing.” Full access to company beneficial ownership data will be granted to law enforcement and relevant government bodies.
Penalties for non-compliance with the new AML Directive are fines of up to at least EUR 5 million or 10% of a business’ annual turnover.
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