Money laundering to disguise non-declared profits is a global problem that costs governments and taxpayers a huge amount in lost tax revenues. It's estimated that between 2 and 5 per cent of global GDP is lost through money laundering. This week the fourth EU anti-money laundering (AML) Directive – 4AMLD – became national law in EU member states, helping countries to fight money laundering, as well as to tackle tax avoidance and terrorist financing.

4AMLD reminds us that the fight against money laundering, tax evasion and terrorist financing is a priority for the EU and the European Commissioner for Justice, Věra Jourová, speaking to Euractiv, has outlined some of the actions included in the new legislation:

• Increased transparency - companies must provide accurate and up-to-date information on company ownership, stating the actual ‘beneficial owners’.
• EU member states must also keep registers of the beneficial owners of companies and business-related trusts, which should facilitate the KYC process for banks.
• Financial institutions have to carry out more systematic, in-depth checks on various risk factors related to their customers and show that they have taken appropriate steps to mitigate the risks.
• Member states will also be able to exchange financial intelligence more easily, so they can detect suspicious transfers and criminal or terrorist activity.

Commissioner Jourová says that 4AMLD means the EU is better equipped to fight financial crime than ever before. But she adds that reinforcements to this newly established framework need to be made – and gives the following examples of what the European Parliament must now do ensure that 4AMLD continues to be effective:

• ensure that certain information in the registers containing details of the beneficial ownership of companies and business-related trusts is made public;
• ensure that registers are interconnected so that cooperation between member states can be facilitated;
• extend due diligence controls to existing accounts, making sure that no one making use of an account, and not only those who open new accounts, is allowed to escape detention.

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CTMfile take: How have the requirements of 4AMLD affected corporates operating in Europe? As a corporate treasurer, have you felt the impact of having to comply with national registers of beneficial ownership and are KYC compliance requirements from your banks now more complex?