European Union’s (EU) new rules to combat tax evasion and money laundering have become effective in the bloc’s member states.

The new rules mandate the bloc’s member states to offer tax authorities direct access to data on the beneficial owners of companies, trusts and other entities, and customer due diligence records of companies.

EU commissioner for economic and financial affairs, taxation and customs, Pierre Moscovici said: “We want to give tax authorities crucial information on the individuals behind any company or trust. This is essential for them to be able to identify and clamp down on tax evaders. To do this, tax authorities will now have access to anti-money laundering information.”

EU expects the new rules to help tax authorities combat the structures highlighted in the massive data leak known as Paradise Papers.

The leak of 13.4 million files from offshore law firms and company registries in 19 tax havens worldwide, revealed late last year, exposed dealings of the affluent, including associates of US president Donald Trump and Russian president Vladimir Putin.