A cross-reference to MiFID II in the Anti-Money Laundering Directive triggers a mandatory application of customer due diligence checks by MiFID-licensed carbon traders to their clients in the secondary spot market in emission allowances.
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Due diligence checks were also mandatory under MiFID I in the primary market and in the secondary market in emission allowances' derivatives (Report from the Commission to the European Parliament and to the Council, Report on the functioning of the European carbon market, 23 November 2017 (COM(2017) 693 final, p. 29).
Directive (EU) 2015/849 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing (AMLD4) entered into force on 26 June 2015. The deadline for its transposition was 26 June 2017.
The AMLD4 aims, inter alia, to bring European Union legislation in line with the International Standards on Combating Money Laundering and the Financing of Terrorism and Proliferation, published by the Financial Action Task Force (FATF), a setter of international standards on anti-money laundering/combating the financing of terrorism (AML/CFT).
It puts the risk‐based approach at the center of Europe’s AML/CFT regime.
Directive (EU) 2018/843 of the European Parliament and of the Council of 30 May 2018 amending Directive (EU) 2015/849 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, and amending Directives 2009/138/EC and 2013/36/EU (AMLD5) is required to be implemented into EU Member States national laws by 10 January 2020.
Commission Delegated Regulation (EU) 2019/1122 of 12 March 2019 supplementing Directive 2003/87/EC of the European Parliament and of the Council as regards the functioning of the Union Registry
Article 67
Cooperation with relevant competent authorities and notification of money laundering, terrorist financing or criminal activity
1. The central adminsitrator and the national administrators shall cooperate with public bodies charged with the supervision of compliance under Directive 2003/87/EC and public bodies competent for the oversight of primary and secondary markets in allowances in order to ensure that they can acquire a consolidated overview of allowances markets.
2. The national administrator, its directors and its employees shall cooperate fully with the relevant competent authorities to establish adequate and appropriate procedures to forestall and prevent operations related to money laundering or terrorist financing.
3. The national administrator, its directors and its employees, shall cooperate fully with the financial intelligence unit (FIU) referred to in Article 32 of Directive (EU) 2015/849 by promptly: (a) informing the FIU, on their own initiative, where they know, suspect or have reasonable grounds to suspect that money laundering, terrorist financing or criminal activity is being or has been committed or attempted; (b) providing the FIU, at its request, with all necessary information, in accordance with the procedures established by the applicable legislation.
4. The information referred to in paragraph 2 shall be forwarded to the FIU of the Member State of the national administrator. The national measures transposing the compliance management and communication policies and procedures, referred to in Article 45(1) of Directive (EU) 2015/849, shall designate the person or persons responsible for forwarding information pursuant to this Article.
5. The Member State of the national administrator shall ensure that the national measures transposing Articles 37, 38, 39, 42 and 46 of Directive (EU) 2015/849 apply to the national administrator.
6. Account holders shall immediately report any fraud or suspected fraud to the competent national law enforcement authority. That report shall be forwarded to the national administrators.
Regulatory chronicle
29 June 2022
Council of the EU: Provisional agreement reached on transparency of crypto asset transfers
AMLA - the new EU Authority for Anti-money laundering: Council agrees its partial position
14 June 2022
20 July 2021
Commission overhauls anti-money laundering and countering the financing of terrorism rules
Anti-money laundering and countering the financing of terrorism legislative package
17 March 2021
Consultation Paper, Draft Guidelines on the characteristics of a risk‐based approach to anti‐money laundering and terrorist financing supervision, and the steps to be taken when conducting supervision on a risk‐sensitive basis under Article 48(10) of Directive (EU) 2015/849 (amending the Joint Guidelines ESAs 2016 72)
The Risk‐Based Supervision Guidelines, EBA/CP/2021/11
1 March 2021
EBA publishes final revised Guidelines on money laundering and terrorist financing risk factors
7 May 2020
24 July 2019
12 November 2018
Directive (EU) 2018/1673 of the European Parliament and of the Council of 23 October 2018 on combating money laundering by criminal law published in the EU Official Journal
11 October 2018
EU adopts tougher rules on money laundering
19 September 2018
30 May 2018
14 May 2018
The Council of the EU, Money laundering and terrorist financing: new rules adopted
26 April 2018
20 December 2017
Documentation
AMLD3 - Directive 2005/60/EC of the European Parliament and of the Council of 26 October 2005 on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing
AMLD2 - Directive 2001/97/EC of the European Parliament and of the Council of 4 December 2001 amending Council Directive 91/308/EEC on prevention of the use of the financial system for the purpose of money laundering
AMLD1 - Council Directive 91/308/EEC of 10 June 1991 on prevention of the use of the financial system for the purpose of money laundering
Links
European Commission website on anti-money laundering and counter terrorist financing