The fourth EU anti-money laundering directive

Abstract

“Flows of illicit money can damage the integrity, stability and reputation of the financial sector, and threaten the internal market of the Union as well as international development. Money laundering, terrorism financing and organized crime remain significant problems which should be addressed at Union level.” This Research Project is geared towards showcasing the major concerns which arise from the crime of money laundering and its intrinsic link with terrorismfinancing. Recent global enforcement actions against financial institutions highlight the importance of compliance with anti-money laundering and terrorism-financing regulations. Such enforcement actions are clear proof that despite the considerable progress made in mitigating risks posed by money laundering and rooting out prior wrongdoing, financial institutions are still falling short of regulators’ expectations. The focal-point of this Research Project is the recently-enacted Fourth EU AML Directive. Salient aspects of this Directive shall be addressed all throughout and a comparative analysis shall be carried out with regard to the changes it has brought about from previous EU AML Directives, specifically the Third AML Directive. Apart from analyzing the impact of the new AML provisions on Maltese legislation, other jurisdictions shall also be taken into consideration, such as those of the UK and the U.S., so as to better highlight the effect of this new Directive on cross-border jurisdictions and businesses. The main pitfalls of AMLD4 shall be examined and possible solutions for future ameliorations shall be put forward.