Amendments to the Fourth Money Laundering Directive, which aim to reinforce rules on anti-money laundering and increase transparency on the ownership of companies and trusts, have been proposed by the European Commission.

The proposals include a requirement for member states to implement the directive’s provisions and its proposed amendments by 1 January 2017.

A reduction of the registration threshold for persons with significant control (PSC) from 25% to 10% for “passive non-financial entities” (i.e. holding structures) is also proposed.

The UK is already consulting on changes to its newly introduced PSC regime, as it does not even comply with the existing Fourth Money Laundering Directive provisions, said Denton partner, David Collins. He added: “The directive requires that centrally held beneficial ownership information must be current.

“In contrast, under the UK’s PSC regime, companies and LLPs only have to report once a year to Companies House through the confirmation statement.

“The directive also covers a broader range of entities including unregistered companies, open-ended investment companies, building and friendly societies, and Scottish limited partnerships.”