10 Jan The 5th Anti-Money Laundering Directive
In our business, it is important to keep up with the latest news and updates in technology, we like to stay ahead of the curve or at least alongside it. We take our responsibility as a future market leading digital onboarding platform very seriously and are always on the lookout for things which might make our platform more relevant for businesses than it already is.
The European Union’s 5th Anti-Money Laundering Directive (5AMLD) came into effect on 10th January 2020. The regulation was passed as law on July 9th 2018 in an effort to bring increased transparency to financial transactions and is largely aimed at money laundering and the financing of terrorism across Europe.
The law will increase transparency about who really owns legal entities in order to prevent opaque structures disguising questionable activities. As a result, it will give European financial regulators better access to information and tackle terrorist financing risks linked to anonymous use of virtual currencies and prepaid instruments. Non-compliance will be punishable by some fairly hefty fines.
This is big news for crypto businesses that will be scrutinised more than ever in order to keep their operations above board. Other obligated entities include lettings and estate agents responsible for letting properties where the monthly rent is equivalent to €10,000 or more.
What does this mean for businesses?
This means that firms currently operating within the regulated sector may need to consider how their risk appetite for working with entities within this new regulated sector may be affected and may need to consider the additional knowledge and/ or controls that may need to be put into place as a result of this change.
Firms will need to improve and increase their customer due diligence protocols. Identification and verification of customers must now be based on documents, data or information from a reliable and independent source. The amendment also states that where available, this should also include electronic identification means which have been approved by national authorities.
Step up SiNERIX
Our Digital Engagement Cloud covers everything you need to comply with the new legislation. You can pre-qualify potential customers with SmartLink; collect and transfer client data between external intermediaries or other client facing data providers.
Use our powerful and versatile electronic signature and document exchange application SmartSign to get sensitive documents completed quickly and conveniently. Make sure that you know who you are dealing with; SmartCheck allows you to scan your photo ID documents i.e. Passport, Driver Licence & ID Cards and the customer can even be verified via biometric face recognition technology.
Get in Touch
Our platform can make compliance to the 5th anti-money laundering directive easy and convenient for your business. If you would like to speak to a member of our expert team about your digital onboarding requirements make sure you call us on 0333 335 5176 or email us and we’ll get back to you as soon as we can. You can also find us on Facebook, Twitter and LinkedIn for all the latest news and updates.