Money Laundering

European Parliament Committee Publishes Opinion on Money Laundering Directive 4

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On January 7, the European Parliament published an opinion, written by its Committee on Legal Affairs (or JURI) relating to the Directive that is proposed to amend and replace the Third Money Laundering Directive (2005/60/EC) (or MLD3).

JURI’s opinion on the new Directive or the Fourth Money Laundering Directive (MLD4) is addressed to the European Parliament’s Economic and MLD4Committee (ECON) and its Civil Liberties, Justice and Home Affairs Committee (LIBE), who are expected to vote on a draft report on January 22.  The opinion sets out detailed amendments that JURI believes should be made to MLD4 on a range of matters, including whistleblowing, personal data and beneficial ownership information.

MLD4 is expected to come before the European Parliament in March 2014, with the new regime likely to come into force some time in 2016.  Opinion.

UK House of Commons Scrutinizes MLD4 and Revised Wire Transfer Regulation Proposals

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On January 2, the United Kingdom House of Commons Scrutiny Committee published its 28th Session 2013-2014 report.  In particular, the report considers the European Commission’s proposed MLD4 Directive on money laundering and terrorist financing and the proposed Wire Transfer Regulation.

Areas of concern over MLD4 highlighted in the report include supranational risk assessments, e-money, politically exposed persons, third country policy and sanctions and supervision.  Report.

OFT Fines Payday Lender for Breach of Money Laundering Regulations

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On August 9, the OFT published a press release stating that it had imposed a £544,505 fine on MCO Capital Ltd (MCO), an online payday lender, for breaching the Money Laundering Regulations 2007 (MLRs) and had also revoked MCO’s consumer credit licence.  Press Release.

MCO had failed to adequately verify the identities of loan applicants, which led to it being targeted by fraudsters who used the details of over 7,000 individuals to apply for loans.  MCO was also found to be engaged in unfair business practices by writing to people who they were aware may not have taken out loans, asking unequivocally for repayment.  MCO’s licence was revoked as the OFT found it lacked the necessary skills, knowledge and experience to run a consumer credit business.

MCO has a right to appeal the OFT’s decision.