Are you ready for 4th AML regulations?

Banks’ management of high money-laundering risk situations
April 16, 2016
The WIRE TRANSFER REGULATIONS 2 (WTR 2)
October 25, 2017

Changes brought about by 4th AML

The 4th Anti-money Laundering Directive has been enacted in some EU countries during the past years, whilst it is still coming into force in others. Amongst a number of industries, the 4th AML has a direct impact on the gambling and financial services sectors, by imposing several requirements on companies’ day-to-day operations.

Getting in line with the new rules of the size of deposited funds and necessary extended due diligence checks require an overwhelming process. The key in having this process as a less painful function, lies in engaging the best resources with vast experience to handle this part of your business, whilst you focus on your core business. Here’s a brief overview of the salient points which require additional effort from compliance teams, related to the introduction of the 4th AML directive.

  • Virtual currency exchange platforms and wallet providers to be added to the list of obliged entities (i.e. they will be obliged to implement AML measures and report suspicious transactions);
  • Lower threshold (from 250 to 150 Euro) and obligatory CDD for anonymously used pre-paid instruments;
  • EU Member States should set up a central registry with identification data of bank/payment accounts holders. Full access to such registry will be given to FIU and AML authorities;
  • Creation of a Specific List of Enhanced CDD measures towards high-risk countries;
  • Public access to the beneficial ownership information across EU;
  • Changes in PEP definition and monitoring requirements;
  • Changes to AML rules around beneficial ownership.

In order to get your business ready for the 4th AML and its targets ensure you address the current market changes (as listed above), such as:

  • Conducting a comprehensive client database check and remediating existing gaps,
  • Rechecking PEPs from your existing database,
  • Conducting research on overseas corporate structures to comply with new tax crime prevention rules,
  • Using adverse media to check on ‘persons of interest’ to comply with Bribery and Corruption requirements,
  • Conducting forensic Enhanced Due Diligence research to clear high-risk clients.

These anti money laundering checks are ongoing in nature.

 

Outsource your compliance function, or part of it, to QGEN … How?

If it sounds like too much work, you’re right. Whilst you are busy changing policies and documenting processes, leave it to the experts to get your compliance in check. This is where QGEN comes in. With years of experience, a multilingual 24/7 call centre and access to various best-of-breed global data sets, your compliance will be up to date in no time. Our services allow clients to target and acquire customers were no electronic footprint exists worldwide, whilst reducing the risk of low conversion rates of up to 95% of customers who have failed traditional online ID checks.

Traditional services are available to the gambling and financial services sector to validate the natural person involved, their ages and the origin of funds. Holistic ID verification processes include fast electronic KYC, diligent manual documentation checks, document scanning, video identity checks and sanctions, PEP and adverse media checks, and a full KYC (Know Your Client) checks.

QGEN is approved by a number of regulators and financial institutions, and can aid in scaling up operators’ compliance function, thus enhance your ability in handling higher capacity and/or tap into new markets. Through years of experience and constant updating, we are in sync with territory-specific regulation requirements. Our products can be integrated seamlessly into your on-boarding processes, to register and service players / clients from around the globe; whether you’re after an extension to your in-house compliance unit or you’d like to engage an outsourcing partner.

Our involvement is not just a one-time task but an ongoing job to monitor and validate players/customers and their moves during the lifespan as your clients, detecting possible fraudulent patterns. Any suspicious events will be flagged and communicated in real-time.

Don’t let compliance eat away your time and set unnecessary constraints on your business. Let us help you shape your compliance function and invest in the ideal resources for your KYC practices. Reach out to Damian Mifsud to set a one-to-one meeting.

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