HM Treasury consultation on the UK's draft implementing measures
Financial Markets Regulatory Spotlight
On 15 April 2019, HM Treasury launched its long-awaited first consultation on the UK's implementation measures for the Fifth EU Money Laundering Directive (MLD5). MLD5 entered into force as a matter of European law during July 2018, and makes a number of amendments to the Fourth Money Laundering Directive (MLD4). EU Member States have until 10 January 2020 to implement MLD5. It is drafted as a minimum-harmonising directive, meaning that EU Member States can apply more stringent requirements than MLD5 if they consider it necessary, and HMT Treasury's implementation proposals will "gold-plate" the baseline provisions of MLD5 in several areas, if they are pursued following the consultation.
The UK government had publicly indicated its commitment to transposing MLD5 prior to issuing this consultation, despite the UK's expected departure from the EU. HM Treasury's consultation proceeds broadly in line with that commitment. This briefing considers the key changes MLD5 will bring about, and the key proposals that have emerged from HM Treasury's consultation.