MLD4: Adoption of Delegated Regulation
On 31 January 2019, the European Commission adopted a Delegated Regulation supplementing the Fourth Anti-Money Laundering Directive (MLD4) with regard to regulatory technical standards (RTS) for the minimum action and the type of additional measures credit and financial institutions must take to mitigate money laundering and terrorist financing risk in certain third countries.
The RTS specify how credit and financial institutions should manage money laundering and terrorist financing risks, as required by Article 8 of MLD4, where a third country’s law prevents the implementation in their branches or majority-owned subsidiaries of group-wide policies and procedures on anti-money laundering and countering the financing of terrorism. The Delegated Regulation will enter into force 20 days following its publication in the Official Journal of the EU, and will apply 3 months from that date. The Delegated Regulation will next be considered by the Council of the EU and the European Parliament.