Germany´s regulators calls non-financial sector on AML duties
German adaptation of money laundering law to the EU Money Laundering Directive
What has happened?
In January 2020, the 5th EU Money Laundering Directive (EU 2018/843) was enacted which increased the auditing and due diligence requirements for nonfinancial sectors. As a result, Germany has adapted its money laundering legislation accordingly.
Non-Financial Sector: Some common challenges for the non-financial sector are for example: High unit costs for a given “low” number of screenings. Differentiation of data quality, for example, a missing “local” PEP filter for different regions can cause a higher number of false positives hits. Latter might result in a higher cost per screening as the manual resolution effort increases, too. The induction of a risk-based approach offers many chances but is often only considered as a burden for business operations Overall it may be said that anti-money laundering commissioner´s role might change in the future. This is not only true because of the current challenges triggered by the 5th EU Money Laundering Directive.
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