EU Commission urges ESTONIA to amend its transposition of the 4th Anti-Money Laundering Directive

The Commission has today sent a letter of formal notice to Estonia on the grounds that it incorrectly transposed the 4th Anti-Money Laundering Directive (4th AML).

Estonia notified a complete transposition of the Directive on 14 January 2019. Nevertheless, the Commission has concluded that Estonia has not correctly transposed the Directive into national law in relation to some important issues linked to the treatment of politically exposed persons (PEPs), beneficial owners, the performance of risk assessments and risk management systems, and access rights of the Financial Intelligence Units (FIUs) to information.

The fight against money laundering and terrorism financing is instrumental for ensuring financial stability and security in Europe. Recent money laundering scandals have revealed the need for stricter rules at EU level. Legislative gaps occurring in one Member State have an impact on the EU as a whole.

That is why EU rules should be implemented and supervised efficiently in order to combat crime and protect our financial system. The Commission published a six-point Action Plan on 7 May to further strengthen the EU’s fight against money laundering and terrorist financing.

This is the first time observations on conformity of the transposition of the 4thAML have been communicated formally to a Member State. This is part of the Commission’s in-depth analysis of how completely and correctly Member States have transposed 4th AML.

Without a satisfactory response from Estonia within four months, the Commission may decide to address a reasoned opinion.

Daniel Ferrie

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