AML Update: ECJ Decision Impacts Access To Beneficial Ownership Information

On 22 November 2022, the European Court of Justice announced its finding that the provision of the Fourth Money Laundering Directive (MLD4) (as amended by the Fifth Money Laundering Directive (MLD5)) under which Member States must ensure "any member of the general public" can access information held on the central registers of beneficial ownership of corporates is invalid.

The Court's finding was on the basis that such general access constituted a "serious interference" with the rights guaranteed by Articles 6 and 7 of the EU Charter on Fundamental Rights.

Under MLD4 as originally drafted, Member States had to ensure that access to those central registers was granted to competent authorities and financial intelligence units (without restriction), obliged entities (for customer due diligence purposes) and to "any person or organisation that can demonstrate a legitimate interest". However, MLD5 later replaced that final "legitimate interest" limb with a reference