The EU 4th Anti Money Laundering Directive – preparation, investigation, compliance

With the fourth EU Anti-Money Laundering (fourth EUAMLD) Directive coming up to its full implementation date on 26 June 2017, now is a good time to be thinking about whether your company is ready for the changes that accompany the new regulation.

So, what are those changes, and what does this mean for existing methods of Know Your Customer (KYC) and beneficial ownership investigations?

In short, the main changes within the fourth EUAMLD can be summarised under two headings: Enhanced Customer Due Diligence (CDD) and Beneficial Ownership:

  1. Under Enhanced CDD, the directive focuses heavily on organisations taking a risk- based approach to the levels of due diligence they conduct against their clients, and that this risk-based approach can be evidenced and justified.
  2. Beneficial Ownership has always been a cornerstone of good compliance and risk management, and regulators are now drawing attention to true beneficial ownership: not just checking names provided, but going behind these and working out who really controls a firm to help understand the true risk behind dealing with certain entities.

In both instances, Blackdot Solutions’ investigations tool, Videris®, helps those in the regulated sector understand more about their clients, particularly those that have already been flagged as posing a heightened level of risk.  Videris’s® integrations with Factiva, company ownership records, social media platforms and negative news material enable in-depth research at the click of a button in a reliable, auditable and consistent manner.  As such, utilising Videris® for Enhanced CDD and as part of a suite of tools to investigate higher risk customers is a great way to evidence a truly risk- based approach to CDD.

In the case of Beneficial Ownership, Videris’s® integration with Bureau van Dijk, one of the world’s leading providers of corporate record data, gives you access to millions of records worldwide at your fingertips.  This is further enhanced by Videris’s® connections with social media platforms and negative news, which provide indications of connectivity between companies and individuals not always obvious from more surface-level investigations. This again is ideal in scenarios categorised as higher risk.

Blackdot Solutions is a groundbreaking UK-based technology company. We have created unique investigations software with unrivalled open source capability.  Our aim is to bring intelligence agency-grade investigations technology to a wider range of sectors.  Information from the Internet is freely available, ethical and legitimate. With Videris®, it can become your biggest single database of valuable intelligence.

If you would like to explore licensing options, please get in touch with our Financial Services and Regulated Sector Client Engagement team using the contact form on the home page.