Some of the fundamental changes to the 4AMLD relate to beneficial ownership registers as follows:

1. Registers for legal entities, such as companies, will be public.

2. Access to registers of trusts will be accessible without any restrictions to competent authorities, financial intelligence units, the professional sectors subject to anti-money laundering rules (e.g. banks, lawyers etc) and will be accessible to other persons who can demonstrate a “legitimate interest”. Where a trust is a beneficial owner of a company, access to this information can be requested by a written request.

3. The 4AMLD already conceived that national beneficial ownership registers will be interconnected to facilitate cooperation and exchange of information between EU Member States. However, now Member States will have to put in place verification mechanisms of beneficial ownership information collected by the registers to help improve the accuracy of information and the reliability of these registers.

The provisional agreement will need to be formally endorsed by the European Parliament and the Council in due course whereupon EU Member States will have a maximum of 18 months to incorporate the new rules in national legislation.

Furthermore, it is worth noting that on 3 January 2018 the Commission announced that, as of 1 January 2018, new amended rules were introduced into the Directive on Administrative Cooperation giving national tax authorities direct access to information on beneficial owners of companies, trusts and other entities as well as customer due diligence records of companies. At the time of writing the amended version of this directive is not available on Lex-Europa (the legal website of the EU) to comment on the amended rules: the version of the directive published being last amended as of December 2016 and last consolidated in June 2017. However, given that EU legalisation is drafted in a civil law manner, it is likely that this directive’s language will not need to fundamentally change to give effect to the new rules.

Share
Twitter LinkedIn Email Save as PDF
More Publications
12 Mar 2021 |

Material adverse change clauses in light of the Covid-19 pandemic

Experts from each of our key global offices provide jurisdiction specific advice and answer question...

8 Mar 2021 |

Appleby Celebrates International Women’s Day

International Women’s Day is celebrated annually in support of gender equality and equal participa...

30 Oct 2020 |

When Worlds Collide – How COVID is Connecting Technology with Natural Resources

Dating back to the beginning of 2020, the natural resources sector has been extremely active at both...

Contributors: Peter Colegate
4 Sep 2020 |

Safe havens: Temporary relocation and residency by investment in Appleby’s jurisdictions

In this article, we examine how the digital nomad culture is evolving in our jurisdictions.

18 Sep 2019 |

Offshore listing Vehicles to benefit from the Shanghai - London stock connect

Offshore listing Vehicles to benefit from the Shanghai - London stock connect