The 5th Anti-Money Laundering Directive

Crypto currencies will face more stringent controls, with exchanges being required to register with the relevant authorities in their jurisdictions, conduct customer due diligence, and prepare suspicious activity reports where necessary. Financial Intelligence Units (FIUs) will be required to keep records of those purchasing virtual currency.

Greater emphasis on transparency around ultimate beneficial ownership (UBO) as part of a targeted attempt to fight back against financial criminals who hide behind often complex and opaque corporate structures. Member states will be required to maintain publicly available national UBO registries.

Member states are required to create and publicly release functional PEP lists that include all titles, roles or functions that are deemed to be politically exposed.

The directive extends the range of high-value goods that will be subject to reporting requirements and regulatory enforcement, including art, oil, arms, precious metals, tobacco, historical, cultural and archaeological artefacts.

When dealing with high risk countries — specifically those identified by the EU as having sub-standard AML regulations — companies will be required to perform enhanced due diligence, which may also include Source of Wealth investigations.

The limit of prepaid cards is lowered from €250 to €150, with a €50 online/remote limit applicable. Only cards issued within the EU are allowed, unless they were issued in a country with legislation that is deemed on par with EU AML standards.