On February 12, the European Commission (EC) sent letters of formal notice to eight member states, who have failed to implement the European Union’s (EU) fifth Money Laundering Directive (5MLD). This is part of the EC’s February 2020 infringements package, a monthly list of member states who are failing to comply with their obligations under EU law across a wide variety of sectors and policy areas.

All member states had to implement 5MLD by January 10. For more information, please see the January 10 edition of Corporate & Financial Weekly Digest. The UK, despite no longer being an EU member state, implemented 5MLD in December 2019.

The countries who, according to the EC, have not implemented 5MLD are:

• Cyprus

• Hungary

• the Netherlands

• Portugal

• Romania

• Slovakia

• Slovenia; and

• Spain.

If these member states have not implemented 5MLD or otherwise provided the EC with a “satisfactory response” within two months, the EC may send them a “reasoned opinion.” If the member states do not respond to the reasoned opinion within two months, then the EC may refer them to the EU Court of Justice.

The February 2020 infringements package is available here.