The European Parliament (EP) has updated its legislative observatory procedure file on the second Information Accompanying Transfers of Funds Regulation (IATF2). The final text of IATF2 was approved by the EP at second reading, and the final act was signed, on 20 May 2015. The next step is publication in the Official Journal, with IATF2 coming into force 20 days later.

At this stage, it is widely expected that payment services providers will not be obliged to comply with IATF2 until the Fourth Anti-money Laundering Directive (AMLD4) has been transposed into the national laws of the European Member States, and relevant firms are obligated to comply with that as well. AMLD4 compliance is currently expected to begin in mid-2017.

IATF2 and AMLD4 were proposed by the European Commission at the same time, as part of the same anti-money laundering and counter-terrorist financing package, and a number of IATF2 provisions are to be carried out in accordance with AMLD4 provisions. The legislative procedure for AMLD4 was also completed on 20 May 2015; and AMLD4 is also awaiting publication in the Official Journal.

Our client alert on IATF2 takes a detailed look at the new IATF2 regime, highlighting the key differences between IATF2 and the existing Information Accompanying Transfers of Funds Regulation.

Posted by Cooley