4th and 5th EU Anti-Money Laundering Directives

Money laundering is a large-scale phenomenon whose methods are limited only by the imagination of those who practice this kind of activity. The fight against money laundering and financing of terrorism is currently one of the most important problems, in addition to the coronavirus epidemic, which affects the economy and activities of legal entities even without directives. The growth of money laundering and terrorist financing cases has recently placed economic crimes at the center of the debate. The fight against money laundering and the financing of terrorism is now a serious problem for financial institutions. Its genesis took place at the end of 1989, during the first discussions in Basel and the creation of the Financial Action Task Force (FATF) at the G7 Summit in July 1989. To address the problems of money laundering and terrorist financing, 6 Directives have been adopted in 30 years in Europe and only 5 directives have been adopted so far. In spite of the fact that legal regulation against money laundering and financing of terrorism in almost all countries of the world except for North Korea is based on FATF recommendations, there are specifics on the regional and national level. States have different approaches to the identification of beneficial owners and respond to the emergence of new payment methods and cryptov currencies. The purpose of this work is to identify successful solutions and existing challenges in the field of legal regulation of money laundering and terrorist financing ("AML/CFT") within the framework of the 4th and 5th European Directives on combating money laundering and terrorist financing.