Financial Crime World

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EU Anti-Money Laundering Directives: A Guide to Compliance in Svalbard and Jan Mayen

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The European Union’s Anti-Money Laundering Directives (AMLDs) have been instrumental in shaping the global fight against money laundering and terrorist financing. As a special territory under Norwegian administration, Svalbard and Jan Mayen must comply with these directives to ensure a safe and secure financial system.

A Brief History of AMLD

The EU’s 4th AMLD was introduced in 2015, strengthening the bloc’s defenses against money laundering and terrorist financing. The directive emphasized:

  • Ultimate beneficial ownership
  • Enhanced customer due diligence
  • An expanded definition of politically exposed persons (PEPs)
  • Lowered cash payment threshold to €10,000
  • Expanded scrutiny to the entire gambling sector

The EU’s 5th AMLD, implemented in 2018, further tightened regulatory controls across more sectors. This included:

  • Virtual currency exchanges
  • Estate agents
  • Rental intermediaries
  • Art dealers
  • Customers seeking citizenship or residency by investment

Key Provisions of the 6th AMLD

The latest iteration of the EU’s AMLD, introduced in 2021, brings additional measures to combat money laundering and terrorist financing. Key provisions include:

  • Stricter controls on crypto currencies:
    • Exchanges must register with authorities
    • Conduct customer due diligence
  • Publicly available ultimate beneficial ownership through national registries
  • Enhanced due diligence measures for politically exposed persons (PEPs)
  • High-risk countries require enhanced due diligence, including source of wealth investigations

Compliance Requirements for Svalbard and Jan Mayen

As a special territory under Norwegian administration, Svalbard and Jan Mayen must comply with the EU’s AMLD. This includes:

  • Implementing robust customer due diligence measures
  • Identifying and reporting suspicious transactions
  • Maintaining accurate records

Financial institutions operating in Svalbard and Jan Mayen must also adhere to the EU’s risk-based approach, conducting regular assessments of their clients and transactions to identify potential money laundering or terrorist financing risks.

Conclusion

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The EU’s Anti-Money Laundering Directives have been instrumental in shaping global efforts to combat money laundering and terrorist financing. As Svalbard and Jan Mayen continues to grow as a financial hub, it is essential that institutions operating in the territory comply with these directives to ensure a safe and secure financial system for all stakeholders.

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