EU Commission urges 8 Member States to fully transpose MLD5June 2020
On 14 May 2020, the European Commission sent a letter of formal notice to Ireland (along with seven other EU member states: Belgium, Czech, Estonia, Ireland, Greece, Luxembourg, Austria, Poland and the UK) for having only partially transposed the Fifth Anti-Money Laundering Directive EU/2018/843 ("MLD5"). The deadline for transposition into national law was 10 January 2020.
The General Scheme of the Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Bill 2019, which was to implement MLD5 in Ireland, was published in January 2019 but has not yet progressed any further. Other than the provisions relating to Beneficial Ownership, Ireland has yet to implement the measures contained in MLD5.
In the letter of formal notice, the Commission encourages the relevant EU member states to transpose all aspects of MLD5 urgently. Without a satisfactory response from the relevant EU member states (a letter of formal notice requests an explanation of the alleged breach of EU law) within four months, the Commission may send a reasoned opinion.
This would state the reasons why the Commission believes that the EU member state is in breach of its EU law obligations and forms the basis of the Commission's case in any subsequent infringement court case against the EU member state. A third stage of the process is a referral to the Court of Justice of the EU.
By Judy de Castro - Regulatory Consultant