On 26th June 2015 the 4th EU Money Laundering Directive (4th EUMLD) came into effect replacing the 3rd EU Money Laundering Directive and superseding member states’ national money laundering regulations. The aim is to prevent financial crime and organised criminal and terrorist financing, this legislation effects businesses beyond the financially regulated sectors, it also includes retailers selling high value goods, professional services firms and gambling operators.

Member state governments now have until July 2017 to transpose this legislation into local national regulations, when this EU Directive will become binding for businesses in all member states and the penalties for non compliance can be a fine of €5million or 10% of turnover.

Jumbo Compliance Guide

Jumio, the document authentication service supplier, who provide unique ID document authentication tools to help regulated companies to verify customer identity by authenticating government-issued ID document, have produced a compliance guide to share their insight on how this legislation mandates regulated firms to verify customer identity.

The guide covers:

• objectives and scope of the legislation
• the regulated entities
• the kind of verification - simplified or enhanced
• where verification takes place.

Although this guide is used to promote Jumio’s technology solutions, it also contains practical info and tips on how to comply with the ‘4th EU Money Laundering Directive’. For a copy of this guide, see.