Third Directive

Question 1

What are the three main contention in regards to Third Directive

Answer 1

1. precise role of a comitology committee.
2. definition of politically exposed persons
3. inclusion of lawyers among those who are required to report suspicious activity

Question 2

What is a comitology committee

Answer 2

European Commission coined the term
“comitology,” which means the EU system that oversees the implementation of acts proposed
by the European Commission.

Question 3

When will the persons

should not be considered PEP

Answer 3

After one year of not being in a prominent position

Question 4

Who will be termed as a close assiociate

Answer 4

Close
associates must be identified only when their relationship with a PEP is publicly known or
when the institution suspects there is a relationship

Question 5

Per Third Directive who is a PEP

Answer 5

natural
persons who are or have been entrusted with prominent public functions and the immedi-
ate family members, or individuals known to be close associates, of such persons

Question 6

Third Money Laundering Directive applies to

Answer 6

• High value goods dealers who trade in cash over 15,000 Euros.
Credit institutions.
• Financial institutions.
• Auditors, external accountants and tax advisors
• Legal professionals.
• Trust and company service providers.
• Estate agents.

• Casinos

Question 7

Who does the Third Directive extended the

scope of the first and second directives by

Answer 7

Extending customer identification and suspicious activity reporting obligations to trusts and
company service providers, life insurance intermediaries and dealers selling goods for cash
payments of more than EUR 15,000.

Defining “money laundering” and “terrorist financing” as separate crimes

Detailing a risk-based approach to customer due diligence.

Protecting employees who report suspicions of money laundering or terrorist financing.

Obligating member states to keep comprehensive statistics regarding the use of and results
obtained from suspicious transaction reports

requiring all financial institutions to identify and verify the “beneficial owner

Question 8

Who is a Beneficial Owner per Third Directieve

Answer 8

eneficial owner” refers to the natural person who directly

or indirectly controls more than 25 percent of a legal entity or person.