The European Parliament and Council are finalising their views on the European Commission's Anti-Money Laundering (AML) package proposal.
In their recent paper, the Parliament highlights that the rules on identifying customers’ beneficial owners “have to be calibrated correctly and fit well within customer due diligence processes”.
The paper also indicated that the ‘control exercised via other means’ criteria needs to be clear, workable and enforceable for practitioners as overcomplication could lead to inconsistent interpretations of these rules across the EU.
The European Fund and Asset Management Association (EFAMA) has said that additional rules for collective investments will not result in further clarity on their investors’ beneficial owners.
Evelyne Christiaens, chair of EFAMA’s AML Task Force, says: “In order to maintain efficient protection of the financial system against money laundering and terrorist financing, it is of the utmost importance that the framework aimed at combating illicit activities is risk orientated and acknowledges the specificities of each sector of the financial industry.
“Moreover, it should provide professionals at the front line of this battle with clear rules, deriving from the best, international standards.”
