Implementations of the EU 3rd Money Laundering Directive in Member States

The EU 3rd Money Laundering Directive, agreed in 2005 by members of the Economic and Financial Affairs Council, is the European legislation that led to the passing of the UK's Money Laundering Regulations 2007. The same directive has been transposed into the laws of most other member countries, such as Germany's Gesetz zur Erg�nzung der Bek�mpfung der Geldw�sche und der Terrorismusfinanzierung.

The feeling among UK money laundering reporting officers (MLROs) is that the implementation of the Directive has presented this country's Regulated sector with more onerous duties to achieve compliance than in other member states. This is not a view without evidence.

Some states' transposition of the Directive into law may be best described as incomplete; Bulgaria and Portugal, for example, are both listed by the International Bar Association (IBA) as having implemented the directive "in part".

Other member states who have passed appropriate money laundering law failed to do so by the deadline of December 2007, and received stern warning letters from the EU commission. Of these, four were referred to the European Court of Justice over their non-compliance: Spain, Belgium, Sweden and Ireland. The referral was decided in October 2008, almost a year beyond the implementation deadline.

The public statement made by the EU regarding this referral underlined that the Directive had been designed to counter terrorist finance by broadening the Regulated sector, by requiring the application of customer due diligence (or 'know your client') tools, and by demanding appropriate levels of anti-money laundering training. The implication is that these countries were leaving the Union with 'weak spots' that could allow proceeds of crime to enter the legitimate economy of the EU.

The UK's entry in the IBA's overview of the member states' compliance with the Directive does state that the country has enacted additional measures beyond the Directive's provisions, but it is not the only one to have done so - it is joined by the Netherlands, where legislators have enacted additional implementation measures. With Slovenia the only other country to be listed with additional measures, it appears that UK MLROs would certainly be correct in a belief that this country's money laundering regulations are, at least, among the most onerous.

The 3rd Money Laundering Directive and training for the Regulated sector
While it may be argued that UK money laundering law is stricter than that of its fellow EU states, it is nevertheless compulsory for the Regulated sector to comply with its strictures.

One of those strictures is that all relevant members of a Regulated business receive anti-money laundering training appropriate to their role in the company. It falls to the firm's MLRO to ensure this training is delivered, either by the MLRO or by a trustworthy company. ML Solutions 4U offers training models to meet this requirement, through seminars, in-house sessions, or internet programmes.

Whatever the needs of your business, we can tailor a training model to ensure your staff and principals are fully informed regarding compliance with the 3rd Money Laundering Directive and its implementation in the Money Laundering Regulations 2007. For more details on our services, please complete our online enquiry form or ring 0845 402 0001.

Money Laundering Information » Implementing 3rd Money Laundering Directive