In its latest newsletter the Council of Bars and Law Societies of Europe (CCBE) has the following on anti money-laundering (AML):
Amendments to the 4th AML Directive
The CCBE is following developments regarding the proposed amendments to the 4th Anti-Money Laundering Directive (4th AML Directive). The CCBE has expressed concern about a number of provisions of the proposed amendments, including the provisions concerning Beneficial Ownership and the role of Financial Intelligence Units. The CCBE has examined a recent Opinion from the European Data Protection Supervisor (EDPS). The European Data Protection Supervisor is an independent institution of the EU which, with regard to the specific point of processing personal data, “is responsible for ensuring that the fundamental rights and freedoms of natural persons, and in particular their right to privacy, are respected by the Community institutions and bodies”. The Opinion analyses certain provisions of the proposed amendments to the 4th AML Directive. In its Opinion, the EDPS identifies a number of significant concerns relating to Beneficial Ownership provisions. The Opinion also identifies concerns regarding proportionality issues with respect to the role of Financial Intelligence Units, and proportionality concerns regarding the need to depart from the well-established risk- based approach. This Opinion also refers to concerns regarding the fact that the proposed amendments exceed the stated goal of countering money laundering and terrorist financing, and violate the principle of purpose limitation of gathering personal data. The CCBE shares the concerns of the EDPS and has expressed similar concerns.
Update on the Supra-National Risk Assessments (SNRA)
The Commission is continuing its work on Supra-National Risk assessments (SNRA). This involves assessing the level of “threat and risk” of money laundering and then assessing the “mitigating measures” for a number of sectors, including the legal sector. The CCBE is providing input to the Commission.