European Parliament Rejects Commission Proposal on AML

On Tuesday, Members of the European Parliament adopted a resolution rejecting the proposal by the European Commission to remove the UAE, Gibraltar, Panama, Barbados, and Uganda from the list of third countries at high risk with strategic deficiencies in anti-money laundering and countering the financing of terrorism (AML/CFT).

Earlier in March 2024, the European Commission had considered the proposal to remove the UAE, Gibraltar, Panama, Barbados, and Uganda from this list (following measures previously taken by FATF, which removed the UAE, Gibraltar, Barbados, and Uganda from the “grey list” in February 2024; and Panama in October 2023).

However, on April 23, Members of the European Parliament overwhelmingly voted to reject the Commission’s stance on all these countries: 490 voted against the proposal, 64 in favor, and 56 abstained.

It is expected that these countries will remain on the EU list at least until September 2024. The Commission is unlikely to challenge the decision of the European Parliament, dealing a blow to the Commission’s stated goal of aligning this EU list with the FATF watchlist. A special EU observer is currently visiting the UAE this week.

New AML provisions: On April 24, the European Parliament adopted a new AML package, including the 6th AML Directive (AMLD 6), the common European AML regulations (AMLR), and the regulatory body for AML issues (AMLAR).

The provision on fund transfers, which was part of the initial package, was separated from the rest and already adopted in June 2023. Once the legislative instruments are formally adopted by the Council and published in the Official Journal of the EU, the CSSF will provide more detailed information on the changes resulting from the new AML package.

The new provisions ensure that individuals with a legitimate interest, including journalists, media professionals, civil society organizations, competent authorities, and supervisory bodies, will have immediate, direct, and free access to information on beneficial ownership held in national registers and interconnected at the EU level. In addition to current information, the registers will also include data for a period of at least five years. The laws also grant financial intelligence units (FIUs) more powers to analyze and identify cases of money laundering and terrorist financing, as well as to suspend suspicious transactions.

Details can be found by this link.

Our team is always ready to provide high-quality advice and help in solving any tasks you set. Subscribe to our pages on social networks. If you have any questions, want to order services or consultations from us, then follow this link or write to us on WhatsApp/Viber/Telegram +380 98 363 6493 or call us.

Please enable JavaScript in your browser to complete this form.

Copyright ©2023 All rights reserved.