What is the currency threshold under the European Union Fourth Anti-Money Laundering Directive?
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A. B. C. D.C
https://www.acams.org/aml-resources/eu-fourth-aml-directive/The European Union (EU) Fourth Anti-Money Laundering Directive (AMLD4) established measures for the prevention of money laundering and terrorist financing within the EU. The Directive imposes obligations on a wide range of entities, including financial institutions, lawyers, accountants, and real estate agents, among others.
In terms of the currency threshold, AMLD4 requires Member States to ensure that entities subject to the Directive apply customer due diligence (CDD) measures in certain circumstances. One of these circumstances is when a customer conducts a transaction in cash that amounts to EUR 10,000 or more, regardless of whether the transaction is carried out in a single operation or in several operations that appear to be linked.
This means that the correct answer to the exam question is C. 10,000 Euros. This threshold is significant because it triggers the obligation for entities to carry out enhanced due diligence measures, including identifying the customer and the beneficial owner, obtaining information on the nature and purpose of the business relationship, and conducting ongoing monitoring of the relationship.
It is worth noting that Member States are allowed to set lower thresholds for CDD measures in certain situations. For example, they may require CDD measures for transactions that amount to less than EUR 10,000 if they consider them to be particularly high risk. Therefore, entities subject to AMLD4 should be aware of the specific requirements and thresholds in their respective jurisdictions.