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4th EU Anti Money Laundering Directive Obliged Entities

Published by in Risk & Compliance ·
Tags: AMLPEPComplianceEU4thAMLDirective

The Fourth Money Laundering Directive (EU/2015/849) broadens the definition of the Third Money Laundering Directive (2005/60/EC) of “designated persons” to include more categories of companies, institutions, organizations, traders and legal entities under the title Obliged Entities (“OE”).

Obliged Entities require to evidence that they have in place policies, controls and procedures to identify, assess, understand, mitigate and manage effectively money laundering and terrorist financing risks, taking into account risk factors including those relating to their customers, countries or geographic areas, products, services, transactions or delivery channels. Those policies, controls and procedures shall be proportionate to the nature and size of the obliged entities and should be approved from their senior management.


Obliged Entities Generic Categories
  1. Credit institutions
  2. Financial institutions
  3. The following natural or legal persons acting in the exercise of their professional activities:
    1. Auditors, external accountants and tax advisors
    2. Notaries and other independent legal professionals, where they participate, whether by acting on behalf of and for their client in any financial or real estate transaction, or by assisting in the planning or carrying out of transactions for their client concerning the
      1. Buying and selling of real property or business entities
      2. Managing of client money, securities or other assets
      3. Opening or management of bank, savings or securities accounts
      4. Organization of contributions necessary for the creation, operation or management of companies
      5. Creation, operation or management of trusts, companies, foundations, or similar structures
    3. Trust or company service providers not already covered under point (a) or (b)
    4. Estate agents
    5. Other persons trading in goods to the extent that payments are made or received in cash in an amount of EUR 10.000,00 or more, whether the transaction is carried out in a single operation or in several operations which appear to be linked;
    6. Providers of gambling services.

Obliged Entities Detailed Company Types
  1. Credit institutions - Banks
  2. Financial institutions - Banks including:
    1. Foreign Financial Institutions
    2. Foreign Banks’ Branches
    3. Currency Exchange Bureaus
    4. Money Transfers
    5. Intermediaries Companies in Money/Funds Transfers
    6. Postal Companies (only to the extent that they act as intermediaries in funds transfers)
    7. Leasing Companies
    8. Factoring Companies
    9. Insurance Companies
    10. Insurance Intermediaries/Brokers/Dealers
  3. Non-Bank Financial Institutions including:
    1. Money Services Businesses
    2. Securities Firms
    3. Brokers/Dealers in Securities
    4. Brokers/Dealers in Commodities
    5. Brokers/Dealers in Precious Metals, Stones and Jewels
    6. Operators of Credit Card Systems – Credit Card Companies
    7. Operators of Payment  Transaction Services Payment Processors, Merchant Acquiring Services
  4. Investment Firms including:
    1. Investment Intermediary Firms
    2. Venture Capital Companies
    3. Portfolio Investment Companies
    4. Companies Providing Business Capital
    5. Mutual Funds Management
    6. Mutual Funds Management for Venture Capital
    7. Mutual Funds Management for Investing in Real Estate
  5. Chartered Accountants, Audit Firms, Independent Accountants and Private Auditors
  6. Tax Consultants and Tax Consulting Firms
  7. Real Estate Agents and related firms
  8. Gambling Companies including:
    1. Casino Enterprises and Card Clubs.
    2. Casinos operating on ships flying the Member State flag.
    3. Public or private sector enterprises, organizations and other bodies that organize and/or conduct gambling and related agencies and agents.
  9. Auction houses
  10. Dealers in high-value goods, only to the extent that payments are made in cash in an amount of EUR 10.000,00 or more, whether the transaction is executed in a single operation or in several operations which appear to be linked.
  11. Auctioneers
  12. Pawnbrokers
  13. Armored Cars Operators (CIT Companies)
  14. Notaries and other independent legal professionals, when they participate, whether by acting on behalf of and for their clients in any financial or real estate transaction, or by assisting in the planning and execution of transactions for the client concerning the:
    1. Buying and selling of real property or business entities
    2. Managing of client money, securities or other assets
    3. Opening or management of bank, savings or securities accounts
    4. Organization of contributions necessary for the creation, operation or management of companies
    5. Creation, operation or management of trusts, companies or similar structures
  15. Natural or independent legal professionals or legal persons providing services to companies and trusts (trust and company service providers) which by way of business provide any of the following services to third parties:
    1. Forming companies or other legal persons
    2. Acting as or arranging for another person to act as a director or secretary of a company, a partner of a partnership, or a similar position in relation to other legal persons or arrangements
    3. Providing a registered office, business address, correspondence or administrative address and any other related services for a company, a partnership or any other legal person or arrangement
    4. Acting as or arranging for another person to act as a trustee of an express trust or a similar legal arrangement
    5. Acting as or arranging for another person to act as a nominee shareholder for another person other than a company listed on a regulated market that is subject to disclosure requirements in conformity with Community legislation or subject to equivalent international standards.


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