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Regulatory

Contributors

Aki Corsoni-Husain
Aki Corsoni-Husain
  • Aki Corsoni-Husain

  • Partner
  • Cyprus
George Apostolou
George Apostolou
  • George Apostolou

  • Partner
  • Cyprus
Chiara Deceglie
Chiara Deceglie
  • Chiara Deceglie

  • Partner
  • Luxembourg
Massimiliano della Zonca
Massimiliano della Zonca
  • Massimiliano della Zonca

  • Senior Associate
  • Luxembourg
Philip Graham
Philip Graham
  • Philip Graham

  • Partner
  • British Virgin Islands
Ayana Hull
Ayana Hull
  • Ayana Hull

  • Counsel
  • British Virgin Islands
Katerina Katsiami
Katerina Katsiami
  • Katerina Katsiami

  • Associate
  • Cyprus
Andrew Knight
Andrew Knight
  • Andrew Knight

  • Partner
  • Luxembourg
Joshua Mangeot
Joshua Mangeot
  • Joshua Mangeot

  • Counsel
  • British Virgin Islands
Mirza Manraj
Mirza Manraj
  • Mirza Manraj

  • Counsel
  • Hong Kong
Elina Mantrali
Mirza Manraj
  • Elina Mantrali

  • Associate
  • Cyprus
Vanessa Molloy
Vanessa Molloy
  • Vanessa Molloy

  • Partner
  • Luxembourg
Andrea Moundi Savvides
Andrea Moundi Savvides
  • Andrea Moundi Savvides

  • Consultant
  • Cyprus
Marina Stavrou
Marina Stavrou
  • Marina Stavrou

  • Associate
  • Cyprus
Matt Taber
Matt Taber
  • Matt Taber

  • Partner
  • Cayman Islands
Carolynn Vivian
Carolynn Vivian
  • Carolynn Vivian

  • Counsel
  • Cayman Islands

European Commission regulatory technical standards memorandum on compliance risks in third countries

On 31 January 2019, the European Commission issued a final version of its draft Delegated Regulation under the Fourth Anti-Money Laundering Directive (EU) 2015/849 (4AMLD) dealing with Regulatory Technical Standards (RTS) on cross border money laundering and terrorist financing risks.

Specifically, the RTS provides for the minimum action and type of additional measures that EU credit and financial institutions are required to identify to assess and manage the money laundering and terrorist financing risks to which they are exposed, in particular, when they have established branches or majority-owned subsidiaries in third countries or where they are considering whether to establish branches or majority-owned subsidiaries in third countries. 4AMLD sets standards for the effective assessment and management of money laundering and terrorist financing risk at group level – this RTS seeks to lay down rules when certain third countries inhibit the ability of the institution to adopt such policies on a group basis.

Compliance departments at EU credit and financial institutions should take into account the guidance and determine whether they should seek independent legal advice to determine the impact of AML/CFT legal impediments they face when operating in third countries.

The draft Commission Delegated Regulation can be found here.