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  1. Proposal for a Regulation of the European Parliament and of the Council on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing (Text with EEA relevance) (COM(2021) 420 final / 2021/0239 (COD)) (updated 24 April 2024 with Texts Adopted)
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Version status: Published
Published date: 20 July 2021

Proposal for a Regulation of the European Parliament and of the Council on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing (Text with EEA relevance) (COM(2021) 420 final / 2021/0239 (COD)) (updated 24 April 2024 with Texts Adopted)

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Explanatory Memorandum
1. Context of the proposal
2. Legal Basis, Subsidiarity and Proportionality
3. Results of Ex-Post Evaluations, Stakeholder Consultations and Impact Assessments
4. Budgetary Implications
5. Other Elements
Proposal for a Regulation of the European Parliament and of the Council on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing (Text with EEA relevance)
Recitals
Chapter I General Provisions (arts. 1-6)
Section 1 Subject matter and definitions (arts. 1-2)
Article 1 Subject matter
Article 2 Definitions
Section 2 Scope (arts. 3-6)
Article 3 Obliged entities
Article 4 Exemptions for certain providers of gambling services
Article 5 Exemptions for certain financial activities
Article 6 Prior notification of exemptions
Chapter II Internal Policies, Controls and Procedures of Obliged Entities (arts. 7-14)
Section 1 Internal procedures, risk assessment and staff (arts. 7-12)
Article 7 Scope of internal policies, controls and procedures
Article 8 Risk assessment
Article 9 Compliance functions
Article 10 Awareness of requirements
Article 11 Integrity of employees
Article 12 Situation of specific employees
Section 2 Provisions applying to groups (arts. 13-14)
Article 13 Group-wide requirements
Article 14 Branches and subsidiaries in third countries
Chapter III Customer Due Diligence (arts. 15-41)
Section 1 General provisions (arts. 15-22)
Article 15 Application of customer due diligence
Article 16 Customer due diligence measures
Article 17 Inability to comply with the requirement to apply customer due diligence measures
Article 18 Identification and verification of the customer’s identity
Article 19 Timing of the verification of the customer and beneficial owner identity
Article 20 Identification of the purpose and intended nature of a business relationship or occasional transaction
Article 21 Ongoing monitoring of the business relationship and monitoring of transactions performed by customers
Article 22 Regulatory technical standards on the information necessary for the performance of customer due diligence
Section 2 Third-country policy and ML/TF threats from outside the Union (arts. 23-26)
Article 23 Identification of third countries with significant strategic deficiencies in their national AML/CFT regimes
Article 24 Identification of third countries with compliance weaknesses in their national AML/CFT regimes
Article 25 Identification of third countries posing a threat to the Union’s financial system
Article 26 Guidelines on ML/TF risks, trends and methods
Section 3 Simplified customer due diligence (art. 27)
Article 27 Simplified customer due diligence measures
Section 4 Enhanced customer due diligence (arts. 28-36)
Article 28 Scope of application of enhanced customer due diligence measures
Article 29 Countermeasures to mitigate ML/TF threats from outside the Union
Article 30 Specific enhanced due diligence measures for cross-border correspondent relationships
Article 31 Prohibition of correspondent relationships with shell banks
Article 32 Specific provisions regarding politically exposed persons
Article 33 List of prominent public functions
Article 34 Politically exposed persons who are beneficiaries of insurance policies
Article 35 Measures towards persons who cease to be politically exposed persons
Article 36 Family members and close associates of politically exposed persons
Section 5 Specific customer due diligence provisions (art. 37)
Article 37 Specifications for the life and other investment-related insurance sector
Section 6 Performance by third parties (arts. 38-41)
Article 38 General provisions relating to reliance on other obliged entities
Article 39 Process of reliance on another obliged entity
Article 40 Outsourcing
Article 41 Guidelines on the performance by third parties
Chapter IV Beneficial Ownership Transparency (arts. 42-49)
Article 42 Identification of Beneficial Owners for corporate and other legal entities
Article 43 Identification of beneficial owners for express trusts and similar legal entities or arrangements
Article 44 Beneficial ownership information
Article 45 Obligations of legal entities
Article 46 Trustees obligations
Article 47 Nominees obligations
Article 48 Foreign legal entities and arrangements
Article 49 Sanctions
Chapter V Reporting Obligations (arts. 50-54)
Article 50 Reporting of suspicious transactions
Article 51 Specific provisions for reporting of suspicious transactions by certain categories of obliged entities
Article 52 Consent by FIU to the performance of a transaction
Article 53 Disclosure to FIU
Article 54 Prohibition of disclosure
Chapter VI Data Protection and Record-retention (arts. 55-57)
Article 55 Processing of certain categories of personal data
Article 56 Record retention
Article 57 Provision of records to competent authorities
Chapter VII Measures to mitigate risks deriving from anonymous instruments (arts. 58-59)
Article 58 Anonymous accounts and bearer shares and bearer share warrants
Article 59 Limits to large cash payments
Chapter VIII Final Provisions (arts 60-65)
Article 60 Delegated acts
Article 61 Committee
Article 62 Review
Article 63 Reports
Article 64 Relation to Directive 2015/849
Article 65 Entry into force and application
Done at
Presidency Compromise text or Note
Accompanying document
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