October 15 2019
Q. What is the Fifth EU Money Laundering Directive and how will it impact my clients?
A. The Fifth EU Money Laundering Directive (5MLD) is to be implemented into UK law by January 2020. Although the UK has committed to leaving the EU, it still intends to implement the directive.
The Fourth EU Money Laundering Directive (4MLD) was the reason that HMRC introduced the Trust Registration Service, which broadly requires all trusts with tax liabilities to register with HMRC.
The new Directive will bring into its scope all UK express trusts, not just those with UK tax implications. It will also apply to non-EU resident trusts which own UK land or property, or which have a “business relationship” with an entity in the UK such as solicitors, accountants or banks.
