The European Banking Authority has published its revised guidelines on customer due diligence ('CDD') and the factors to be considered when assessing the risk of money laundering and terrorist financing under the 4th and 5th Money Laundering Directives. These guidelines will repeal and replace the 2017 guidelines three months after publication of the official language versions. Please get in touch if you have any queries in relation to the new guidelines or the latest money laundering directives.

The new 'risk factor guidelines' also feature guidance on: 

  • the identification of beneficial owners; 
  • using the latest services for verifying identity; 
  • compliance with enhanced CDD ('EDD') requirements;
  • specific compliance steps for crowdfunding platforms, corporate finance advisory firms, account information service providers ('AISPs'), payment initiation services providers ('PISPs'), and currency exchange.

Importantly, the EBA confirms that there is no basis for firms to argue that they are 'required' to discontinue services to entire categories of customers which they associate with higher risk of money laundering and terrorist financing risk. Instead, they are required to balance the need for financial inclusion with the need to mitigate and manage the risk of money laundering and terrorist financing. 

Please get in touch if you have any queries in relation to the new guidelines or the latest money laundering directives.