Anti-money laundering

Javier Doz Orrit

By Javier Doz Orrit

 

The opinion comments on the 5th anti-money laundering directive (AMLD) modifying the 4th (2015), reinforcing and broadening its measures, and proposes the transposition of both by the Member States by January 1st 2017. It also includes measures against terrorism funding, applying the February 2016 action plan.

The main measures of the 5th AMLD are headed towards obtaining, processing and sharing (among Member States) information that allows to identify the real owners of companies, trusts, foundations and other mediating entities of financial transactions, as well as anyone who conducts any financial operation and (under certain circumstances) the users of prepaid cards and virtual money. To this purpose, national registries of public access will be created. The number of entities 'forced' to submit information to Financial Intelligence Units (FIUs) of Member States is increased and reinforces those units' competences. The directive also strengthens measures of 'due diligence' that financial entities must apply to 'high-risk third countries' (tax havens).

The EESC opinion supports the measures of the 5th AMLD and the urgency of its approval and transposition. Nevertheless, it considers that the following factors can severely limit its efficiency:

  • The list of 'high-risk third countries' published on 14 July 2016 does not contain the main tax havens in the world. In particular, not a single one of those mentioned in the Panama Papers that motivated this directive. The EESC demands that a new list be created or that the range of application of article 18bis be broadened.
  • The application of the 5th AMLD measures in all territories or jurisdictions of Member States is not guaranteed and the EESC thinks that the directive should ensure this.

The EESC considers that the fight against money laundering, corruption, fraud and tax evasion and other similar crimes must be reinforced by strengthening the means available for it. To this purpose, a closer cooperation among intelligence and security services of Member States must be ensured, in order to tackle money laundering, terrorism and its funding.

The EESC proposes that every free trade or economic association agreement includes a chapter on measures against tax fraud and evasion, money laundering and terrorism funding.

 

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Anti-money laundering