Fourth Anti-Money Laundering Directive

The Fourth Anti-Money Laundering Directive is a set of European Union rules aimed at preventing illegal money from being hidden or "laundered" through financial systems. It requires banks, financial institutions, and certain businesses to verify their customers’ identities, monitor transactions for suspicious activity, and report any unusual dealings to authorities. The goal is to enhance transparency, combat financial crimes like fraud and terrorism funding, and strengthen the overall integrity of the EU’s financial system. It builds on previous laws, narrowing loopholes and increasing cooperation among member states.