RATE Group | The Impact of 5AMLD | The Fintech Times
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The Impact of 5AMLD | The Fintech Times

20 Jan The Impact of 5AMLD | The Fintech Times

Posted at 19:27h in Cryptocurrency News by

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By Dhanum Nursigadoo, Financial Crime Specialist, ComplyAdvantage.

The AML landscape has shifted. The fifth anti-money laundering directive (5AMLD) passed on 10th January and few were ready for it. 

The new legislation is the next step following 2017’s 4AMLD, legislation that many are still trying to comply with, and the objective is to target areas of the financial compliance architecture that are fit for purpose. 5AMLD will bring about a few key changes, which we run through below. 

Prepayment cards

5AMLD’s limitations on prepayment cards look like a direct attack on financial inclusion. 

Prepayment cards are legitimately used by those on low incomes or with limited access to high-street banks, often due to past financial difficulties such as bankruptcy. In response to this, the reduction in use may see an increase in bank accounts with low or no access to credit.  

Certain banks have considered this, with HSBC offering accounts to those with no permanent address. While…

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