Terrorism Financing – Controls of cash movements

27 Apr 2017
Adopted References: ECO/427 EESC-2017-00342-00-01-ac-tra Referral - Rapporteur: Javier DOZ ORRIT (Workers - GR II / Spain) Co-rapporteur: Mihai IVASCU (Various interests - GR III / Romania) Plenary Session: 525 - 26 Apr 2017 - 27 Apr 2017 (Summary Plenary Session)
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on controls on cash entering or leaving the Union and repealing Regulation (EC) No 1889/2005

EESC opinion: Terrorism Financing – Controls of cash movements

Key points:

 

The EESC

  • supports the  Commission's proposal to expand the scope of controls and the competency of the authorities in order to conduct checks and confiscate goods, whenever there is a reasonable indication of illicit activities, will facilitate the discovery of more fraudulent cases and gather more information.
  • believes that it is necessary to improve cooperation, both between the competent authorities and between Member States, in order to achieve the maximum effect in applying the new regulation.
  • proposes that, following a study and extensive consultations, the Commission should put together a plan for reducing the use of cash in the EU and the adequacy of the EUR 10 000 threshold should be reconsidered.
  • believes that the Commission should go further in setting out the penalties for failure to comply with the obligation to declare.
  • reiterates its concern that tax havens in which the most significant money laundering takes place – and whose cash flows with the EU should in particular be monitored – are not featured in the list of the Commission of high risk third countries.   
  • suggests that tax authorities should also have access to information collected in the course of cash flow controls in order to investigate links of such activities with tax offences.
  • recommends that in addition to gold, other "highly liquid commodities" should be included in the definition of cash from the moment the new regulation is adopted.
  • proposes that more attention should be paid to the threat of further use of pre-paid cards by criminals and terrorists of such instruments to covertly finance their activities.
  • suggests that data protection should be strengthened due to the increase in the amount of data being collected and exchanged between authorities.