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.