Government invites views on 5th money laundering directive

The HM Treasury has invited views and evidence on the steps that the government proposes to take to meet the UK’s expected obligation to transpose the fifth money laundering directive into national law.

It is also seeking views and evidence on the potential costs and benefits of the changes considered. 

"Where EU member states are given the discretion to make decisions on certain aspects of 5MLD, this consultation seeks your views on the government’s proposals and issues to be addressed," the government said in its consultation paper. 

The fifth money laundering directive makes amendments to the fourth money laundering directive on the prevention of the use of the financial system for the purposes of money laundering and terrorist financing.

These amendments and new provisions are expected to further strengthen transparency and the existing preventative framework, while ensuring the UK adheres to international standards set by the Financial Action Task Force, the HM Treasury said.

Among the amendments is the expansion of the scope in relation to tax matters.

The government explained that although auditors, accountants and tax advisers are already in scope of the MLRs, 5MLD expands the definition of “tax adviser” to include firms and sole practitioners who by way of business provide, directly or by way of arrangement with other persons, material aid, assistance or advice about the tax affairs of other persons. 

The government intends that the new provisions will come into force by 10 January 2020. 

The Treasury now wants to gauge public opinion. Comments should be sent to Anti-MoneyLaunderingBranch@hmtreasury.gov.uk by 10 June.