New trust rules invoke uncertainty for UK AML Directive

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As reported in the first week of July, the European Commission released a reformed version including all amendments to be made to the 4ML, following its announcement in February this year that further restrictions were necessary to combat terrorist financing.

The so-called 4ML Directive, agreed in May last year, is not in force in any EU member state yet. It was originally scheduled to be transferred into member states’ domestic legislation by mid-2017; however that is now expected to be brought forward towards the end of 2016 instead.

The amended version contains new requirements on corporate trust and company providers to disclose details of company Beneficial Ownership and trust beneficiaries and to centrally held registries that can be viewed and administered by each member state’s government.