New AML package needs clear rules that help identify beneficial owners

EFAMA is commenting on the EC’s AML package proposal as the EP and Council are currently finalizing their views on it. EFAMA highlights the identification of beneficial owners as a crucial aspect of this proposal.
EFAMA emphasizes the need for clear and calibrated rules for identifying beneficial owners in customer due diligence processes. They argue that a uniform threshold of 25% should be maintained across all industries in which customers operate. According to EFAMA, using lower thresholds or implementing separate thresholds for specific industries would overcomplicate the identification process and lead to unnecessary investigations of minority shareholders. Such an approach could potentially cause financial entities to lose sight of complex ownership structures.
Another point raised by EFAMA is the importance of clear and workable criteria for determining “control via other means“. Overly complex rules in this regard could result in inconsistent interpretations of these rules across the EU, making it challenging for financial entities to assess their customer relationships and AML/CFT risks effectively.
EFAMA also argues that CIUs, such as investment funds, should be excluded from certain provisions. They point out that units or shares in investment funds are often distributed through intermediaries under account structures similar to nominee arrangements. These structures are already subject to appropriate and specific AML/CFT rules and have been recognized and accepted by international standards setters like the FATF.