A briefing from Baker McKenzie focuses on new requirements that apply specifically to credit and financial institutions, including e-money institutions, payment institutions, investment firms, AIFM and UCIT management companies.  It says that the new standards specify “additional measures” in respect of relevant institutions’ branches and majority-owned subsidiaries operating outside the EEA.  Where local law does not allow implementation of group-wide policies and procedures to effectively handle the risk of money laundering and terrorist financing, they will need to take “additional measures” proportionate to the level of risk and in the worst case stop carrying on business.  The European Commission is looking to achieve a more consistent EU approach with this initiative.  When the 5th Money Laundering Directive that takes effect in January 2020, Member States and supervisory authorities, when assessing if non-EEA countries hinder proper implementation of group-wide policies, must expressly take account of any legal constraints, including: secrecy, data protection and other constraints limiting the exchange of information, which would likely add to the need for additional measures those jurisdictions that are non-cooperative in respect of tax and beneficial ownership.

EU Regulation 2019/758/EU of 31st January is available at –


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Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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