The Third Money Laundering Directive came into force on 15 December 2005 and will require to be implemented by Member States by 15 December 2007. Replacing the First and Second Money Laundering Directives, the Directive incorporates the recommendations of the Financial Action Task Force. These recommendations were extended in June 2003 to address the financing of terrorism in addition to money laundering.
The Directive is applicable whenever a payment over more than €15,000 is made and applies to financial institutions as well as solicitors, accountants, estate agents, trust and company service providers and providers of goods. The UK government is expected to issue a consultation document in respect of the Directive early in 2006.