moneyfcd

The Fifth Money Laundering Directive and legal Compliance


The Fifth Money Laundering Directive and legal Compliance

10th of January 2020 is the date the Fifth Anti-Money Laundering Directive (5AMLD) will become law within the European Union.

5AMLD is intended to built on the 4AMLD’s attack on financial crime by boosting existing transparency rules. As a result, those working in financial services will have to meet new requirements as 5AMLD targets areas that have so far not felt the force of previous directives.

For the first time, cryptocurrencies will face regulation that was applied to more traditional financial institutions under 4AMLD. Cryptocurrency exchanges will now have to perform customer due diligence and submit suspicious activity reports (SARS).

5AMLD stretches out to one thing: know your business. The EU wants its latest directive to face the fight to money laundering.

Under 5AMLD, EU member states must establish a national register of beneficial ownership information that covers businesses, trusts and even those possessing safe-deposit boxes. The information on each member’s register should be available to share with other members and the records are required to cover anyone who has a 25% or greater stake in a company.

5AMLD also requires those in business to carry out what amounts to due diligence on countries. Failing to meet the requirements of such obligations can mean, based on the 5AMLD, fines up to a maximum of €5 million or 10% of annual turnover.

Therefore, the right controls, procedures and enhanced levels of staff awareness are essential. Not meeting those expectations would be very costly.

Source: lawyer-monthly.com

 

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Swedish, Estonian regulators advance Swedbank probe

Swedish, Estonian regulators advance Swedbank probe

Swedish and Estonian financial regulators have taken their investigations into Swedbank over anti-money laundering controls as its Baltic operations to the next level, they said, making a formal step in the process that could lead to a financial penalty.

Sweden’s financial supervisory authority (FSA) mentioned that weaknesses have been identified in Swedbank’s anti money laundering procedures and that it’s now examining if it should face a formal sanction.

The bank has previously admitted to failings in its money laundering controls in the Baltics and it was widely expected that the FSA would go ahead with a formal case after opening an investigation earlier this year. A decision is expected early next year.

The maximum fine that the Swedish FSA can impose is 10% of annual group revenue.

Swedbank has lost around 40% of its market value since its Estonian business was caught up in the money laundering allegations that have engulfed Danish rival Danske Bank.

Source: Reuters.com

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Google and YouTube fined with $170 million for violations of children’s privacy

Google and YouTube fined with $170 million for violations of children’s privacy

Google and YouTube will pay $170 million to settle a case with the US Federal Trade Commission and New York Attorney General that alleges the tech giant illegally collected children’s personal information.

Under the Children’s Online Privacy Protection Act (COPPA), owners of online services targeted at children need to gain parental consent before collecting data on persons under the age of 13, which also includes the use of persistent identifying cookies.

The FTC and New York Attorney General put forward the argument in a complaint that YouTube channels created to target children needed to comply with COPPA.

As final settlement YouTube agreed to pay the amount of $170 million. From that amount $136 million will be taken by the FTC and New York will take the remaining $34 million.

This is the largest amount fined and which will be collected for a non-criminal case which concerns child protection. The previous record held the amount of $5,7 million which was imposed in 2019 to the owner of the famous TikTok video application.