Which requirement is included in the Fourth European Union Directive on money laundering?

Question

Options

• AIt requires obliged entities to consider politically exposed persons as high risk for life
• BIt requires obliged entities to conduct enhanced due diligence on all prepaid card holders
• CIt requires member countries to maintain registries of the beneficial owners of legal entities
• DIt requires member states to enact economic sanctions against countries that do not cooperate

• A
  2% (1)
• B
  7% (3)
• C
  85% (35)
• D
  5% (2)

Explanation

The Fourth European Union Directive on money laundering (AMLD4) requires member countries to maintain registries of the beneficial owners of legal entities, such as companies, trusts, foundations, etc. This is to ensure that the true identity and ownership of the customers and the natural persons on whose behalf transactions are conducted are known to the obliged entities, such as banks, lawyers, accountants, etc., and to the competent authorities, such as regulators, supervisors, or law enforcement. This requirement aims to prevent the misuse of legal entities for money laundering or terrorist financing purposes, and to enhance transparency and access to beneficial ownership information.

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