SmartSearch, the anti-money-laundering specialist, has produced a guide to the top five changes that businesses are likely to see when new European regulations are implemented in the New Year.

The Fifth EU Money Laundering Directive (5MLD) is due to be transposed into domestic law by 10 January 2020, and will see stricter conditions for the issuing of e-money and prepaid cards, as well as a clampdown on virtual currency bringing cryptocurrencies into scope for the first time.

Other 5MLD changes highlighted in SmartSearch’s guide include registers of beneficial ownership being made accessible to the public, better access to information being provided for Financial Intelligence Units (FIUs), and due diligence for individuals and businesses increasing in high-risk countries.

The guide also notes that failure to comply with the regulations could result in prosecution, or heavy financial penalties.

SmartSearch noted the Treasury’s failure to produce any final regulations for British businesses, but added that the 5MLD will set out minimum requirements for Member States – the Government had previously indicated it would implement and enforce the new rules regardless of the UK’s future relationship with the EU.

Commenting on the guide, SmartSearch managing director, Martin Cheek, said: “Although we’ve yet to see final details, the new money-laundering regulations are bound to have a serious impact for large numbers of firms in the UK and across the EU.

“We have called on the Government to publish the final rules without delay so businesses can prepare more effectively and ensure they are compliant. In the meantime, our ‘Top Five’ guide is aimed at giving them a bit of a helping hand.”

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