Ambiguities surrounding the fifth anti-money laundering directive of the European Union in relation to trusts

Abstract

The main objective of this Thesis is to identify and analyze the ambiguities surrounding the 5AMLD in relation to trusts and similar legal arrangements, to assess whether the identified ambiguities weaken the ability to achieve the aim of the 5AMLD and safeguard the EU financial system and its Member States against money laundering. It has been concluded that the discrepancies in the understanding of the concept of trust and similar legal arrangements across the Member States weaken the ability to achieve the aim of the legal instrument also due to vague explanations and measures provided by the 5AMLD on trusts and similar legal arrangements. In addition, it has also been concluded that the vague requirement to present a legitimate interest to obtain access to the beneficial ownership register for trusts is a mere administrative burder that nearly all could overcome, thus granting a blanket access to the information to the general public. Such access threatens the safety of the wealthy individuals using trusts and similar legal arrangements, and contradicts with the legislative intent of the instrument. The access rights should therefore be limited to the relevant authorities.