A new European AML/CFT package
29 September 2023 _ Regulatory & compliance
Circular 21/782 amends Regulation (EU) No 648/2012 of the European Parliament and of the Council, and repeals Directive 2005/60/EC of the European Parliament and of the Council and Commission Directive 2006/70/EC1.
The revised guidelines provide guidance on the various money laundering and terrorist financing (ML/FT) factors that professionals should take into account when assessing their risks.
The revised Guidelines take into account new and emerging risks related to, for example, the use of RegTech solutions for CDD or terrorist financing purposes, and contain more guidance on the identification of beneficial owners and enhanced customer due diligence measures in relation to high risk third countries.
Furthermore, the Guidelines also specify how professionals can adjust AML/CFT customer due diligence measures according to the level of risk involved.
Finally, the guidelines also state that an effective risk-based approach should not lead to the systematic abandonment or discontinuation of the provision of services to certain categories of customers associated with a higher risk of money laundering and terrorist financing ("de-risking" approach) and that professionals should also balance the need for financial inclusion with the need to mitigate money laundering and terrorist financing risk
The contents of this informative message are the result of the free interpretation, evaluation and appreciation of Pharus Asset Management SA and constitute simple food for thought.
Any information and data indicated have a purely informative purpose and do not in any way represent an investment advisory service: the resulting operational decisions are to be considered taken by the user in full autonomy and at his own exclusive risk.
Pharus Asset Management SA dedicates the utmost attention and precision to the information contained in this message; nevertheless, no liability shall be accepted for errors, omissions, inaccuracies or manipulations by third parties on what is materially processed capable of affecting the correctness of the information provided and the reliability of the same, as well as for any result obtained using the said information.
It is not permitted to copy, alter, distribute, publish or use these contents on other sites for commercial use without the specific authorization of Pharus Asset Management SA.