EU’s Fifth Anti-Money Laundering Directive: what the crypto-asset sector needs to do



Certain participants in the crypto-asset sector have been highlighted by the EU’s fifth Anti -Money Laundering Directive to be subjected to regulation for anti-money laundering and counter-terrorism financing compliance purpose as there are lots of tools available for them to consider putting in use for process to be faster and quicker whenever they implement the new directive as most of the crypto-assets firms may not meet up with the 10 January 2020 deadline.

This new directive is a step further in curbing terror plots financing and prevent a repetition of illegal financial dealings as revealed by the Panama papers. It has now become an utmost responsibility for the fintech and other financial service providers to prevent money laundering, tax evasion and other financial crimes. There exists a plethora of software that will aid the fast implementation of the 5AMLD, the software can easily run a background check on an organization to detect a change in management or ownership. Also, robotic and digital process automation is in place to trigger various actions that will extract various financial information from banks.

As it is common to every new directive, we should not expect overhaul midnight change on the 5AMLD because the rate and pace at which big firms will adhere and implement the directive will be totally different from the way the smaller and medium-sized firms will adhere and implement, hence, it may take up to a couple of years before the full effect of the 5AMLD compliance will be felt worldwide. While there may still be one or two grey hairs to resolve on the 5ALMD, it is so pertinent for crypto-assets organizations and banks to comply not only for the sake of complying with the EU but also for them to save the future of their various businesses.