The European Union's fifth Money-Laundering Directive, drafted up hot on the heels of the fourth, will become EU law shortly. EU countries have until 10 January 2020 to enshrine it in their own laws.

MLDV amends and supersedes MLDIV with the following main reforms: (i) a centralised EU approach to "enhanced due diligence measures to be taken with regard to high-risk third countries" - code language for the extra scrutiny that EU nations must force financial institutions to impose on HNW individuals and other entities from nations outside the EU that the EU's officials consider to be conducive to money laundering; (ii) to include 'providers' (of what, the directive never says) engaged in exchange services between virtual currencies and fiat currencies as well as custodian wallet providers; (iii) to cut down people's access to anonymous prepaid credit cards, by further reducing the limits and maximum amounts under which finanical firms are allowed not to apply certain CDD (customer due diligence) measures - a further step towards the abolition of cash; (iv) every EU country to set up a central mechanism to identify the holders and controllers of bank and payment accounts; (v) more powers for financial intelligence units to ask financial firms for information related to money laundering and terrorist financing information; and (vi) better access to beneficial ownership for various people.

"Enhanced customer due diligence" consists of the financial institution in question obtaining more information than is standard on the customer/beneficial owner; obtaining additional information on the intended nature of the business relationship; obtaining more information than usual on the source of funds and source of wealth of the customer and of the beneficial owner(s); obtaining information on the reasons for the intended or performed transactions; obtaining the approval of senior managers for the establishment or continuance of the business relationship; and monitoring the business relationship more closely that usual by stepping up the number and frequency of various controls and selecting patterns of transactions that require further examination.

ECDD, EDD, yes!