EU's Proposes Changes To 4AMLD

Introduction

On 5 July 2016, the EU Commission published proposed amendments to the EU's 4th Anti-Money Laundering Directive (4AMLD). The proposal indicates that the amendments are born out of the recent increased terrorist threat to European States and so seek to strengthen the fight against terrorist financing. By consequence, the proposals increase transparency. Some proposals will affect companies and other legal entities, such as foundations, but the fundamental proposals will affect trusts and the requirement to make public beneficial ownership information in relation to trusts.

Corporate and legal entities

4AMLD currently proposes that EU Member States ensure compulsory disclosure (i.e. public access) to a limited set of information on beneficial owners, firms and legal entities engaging in profit-making activities as laid down in Article 54 TFEU (Treaty on the Functioning of the EU). In this regard, 4AMLD currently requires the identification of