Which are the requirements of the Fifth AML Directive of the European Union (EU)? (Choose two.)
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A. B. C. D. E.AD
The Fifth Anti-Money Laundering Directive (5AMLD) of the European Union (EU) was adopted on May 30, 2018, and came into effect on January 10, 2020. Its main objective is to strengthen the fight against money laundering and terrorist financing in the EU.
Two of the requirements of the Fifth AML Directive of the European Union (EU) are:
B. Extending AML/CFT rules to entities that provide virtual currency services: The 5AMLD has extended the scope of the EU's anti-money laundering and counter-terrorist financing (AML/CFT) rules to virtual currency exchange platforms and custodian wallet providers. These entities are now obliged to conduct customer due diligence (CDD) checks and report suspicious transactions to the relevant authorities. The 5AMLD has also introduced a requirement for Member States to create central registries of virtual currency users and their wallet addresses.
C. Broadening the criteria for assessing high-risk third countries: The 5AMLD has broadened the criteria for assessing high-risk third countries, i.e., countries outside the EU that have strategic deficiencies in their AML/CFT regimes. The new criteria include factors such as the existence of political instability, poor rule of law, and corruption, in addition to those already considered, such as insufficient transparency and inadequate implementation of the FATF recommendations. As a result, more countries may be classified as high-risk, and financial institutions will have to apply enhanced due diligence measures when dealing with them.
The other answer choices:
A. Promoting the record keeping obligations of banks to the maximum amount of data necessary for the purposes of AML/CFT investigations: This statement is not entirely accurate. While the 5AMLD does emphasize the importance of keeping accurate and up-to-date records, it does not specify the maximum amount of data necessary for AML/CFT investigations.
D. Developing a variant approach in the strategy for the treatment of organized crime and terrorism threats: The 5AMLD does not develop a variant approach to the treatment of organized crime and terrorism threats. Its main focus is on strengthening AML/CFT rules and addressing emerging risks, such as virtual currencies.
E. Providing information access to Financial Intelligence Units (FIUs) according to the differences in the nature of their functions, competences and powers: The 5AMLD does not provide information access to FIUs according to the differences in the nature of their functions, competences, and powers. Instead, it strengthens the exchange of information between competent authorities, including FIUs, by establishing clear rules and procedures for information sharing.