New EU rules to thwart money laundering and terrorist financing

Money Laundering EU 2018

Michel Barnier showing a document at “The fight against Money Laundering and Terrorist Financing: new framework, future challenges” Conference. © European Union , 2013   /  Source: EC – Audiovisual Service   /   Photo: Jennifer Jacquemart.

This article is brought to you in association with the European Parliament.

MEPs approved new measures to combat terrorist financing, by preventing money laundering and tightening cash flow checks, on Wednesday.

The two laws will make it harder for terrorists and criminals to finance their activities, by closing the loopholes in the current money laundering rules and by making it easier for the authorities to detect and stop suspicious financial flows.

The new rules to prevent money laundering introduce:

  • EU-wide definitions of money laundering-related crimes,
  • EU-wide minimum penalties, such as a minimum of four years of imprisonment for money laundering maximum sentences, and
  • new additional sanctions, such as barring those convicted of money laundering from running for public office, holding a position of public servant and excluding them from access to public funding.

The new rules on the criminalisation of money laundering were approved by 634 votes to 46, and 24 abstentions.

The new rules on cash flows:

  • extend the definition of cash to include gold and anonymous prepaid electronic cash cards,
  • enable authorities to register information about cash movements below the current €10,000 threshold and to temporarily seize cash if they suspect criminal activity, and
  • require disclosure of unaccompanied cash sent by cargo or post.

The new rules on cash flows were approved by 625 votes to 39, and 34 abstentions.

Quotes

Rapporteur Ignazio Corrao (EFDD, IT) said: “The new rules on criminalisation of money laundering hit criminals where it hurts them most: money. The rules prevent criminals from financing their activities – legal or illegal – with the proceeds of illicit actions. Money laundering is a dangerous crime and its harmful consequences are often underestimated. This directive adds a new important tool to fight against this crime. ”

Rapporteur Juan Fernando López Aguilar (S&D, ES) said: “To properly fight economic fraud, money laundering and terrorism financing, the EU must reinforce its controls over cash entering or leaving its territory. We have incorporated the best practices at international level to new rules and solved some deficiencies and shortcomings of the current legal framework.”

Rapporteur Mady Delvaux (S&D, LU) said: “Cash is difficult to trace and easy to transfer, therefore criminals frequently use it. With this regulation, we are strengthening the tools to combat money laundering and terrorist financing through better and faster exchange of information between authorities, as well as by adopting a more complete definition of cash.”

Next steps

The new measures have already been agreed upon by the Parliament and Council negotiators, but still require the formal approval of the Council.

Member states will have 24 months from the date of entry into force of the criminalisation of money laundering directive to bring the new rules into force. The rules on cash controls will apply 30 months from the date into force of the regulation.

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Featured Stings

Russia and the West use the same tactics to dismember Ukraine

We have to learn to trust Artificial Intelligence. Here’s how

Eurozone has practically entered a deflation trap

Blockchain could boost global trade by $1 trillion

Blockchain is facing a backlash. Can it survive?

Sponsored content: when QUALITY meets OPEX in manufacturing

Parliament to ask for the suspension of EU-US deal on bank data

ZTE @ MWC14: ZTE excels in all areas at this year’s Mobile World Congress

Commission imposes a fine of €561 million on Microsoft

Journey of my life

Opponents of constitutional change in Burundi face torture and execution: UN investigators

Back to the basics for the EU: Investment equals Growth

“Prevention is better than cure”: the main goal of modern medicine

While EU Open Days 2013 discuss the 2020 strategy, Microsoft shares a glimpse of EU 2060

Facebook/Cambridge Analytica: MEPs pursue personal data breaches probe

Algorithmic warfare is coming. Humans must retain control

Shifting Tides: Policy Challenges and Opportunities for the G-20

Ukrainian civil war: Is this the beginning of the end or the end of the beginning?

GSMA head urges regulators to help Europe regain leadership

European Citizens’ Initiative: A game of much publicity and one big lie

EU’s unsparing question to UK: now what kind of future relations do you want?

It’s Trump’s anti-globalization and inward-looking rhetoric that perturbs GOP and US

European Investment Bank to borrow €70 billion in 2013

The quality of health education around the globe

India can soar in the robot age. This is how

Commission hardens its stance against carmakers ensuring emissions reductions targets

ECB: Monetary policy decisions

Parlamentarians to “break up” with reality in the Google antitrust case

COP21 Breaking News_10 December:#ParisAgreement: Points that remain in suspense

Eurozone needs more than some decimals of growth

These are the world’s most future-proof cities

A Sting Exclusive: the EU referendum is about fighting for an outward-looking Britain

Eurozone: In vicious cycle of disinflation and unemployment?

The ECB must extend its money stimulus beyond 2018: Draghi reckoning

Ambassador Zhang Ming: “Work Together for a Better Globalization”

Fairer food supply chain: Agriculture MEPs clamp down on unfair trading

Technology is a force for peace and prosperity. Don’t let its challenges obscure this

Future EU farm policy: Agriculture MEPs urge fair funding, no renationalisation

How civil society must adapt to survive its greatest challenges

On the detention of children in the United States of America

ECB money bonanza not enough to revive euro area, Germany longs to rule with stagnation

Draghi repels Trump’s threats, rejects Schauble’s dictums

Africa’s inspiring innovators show what the future could hold

This forgotten element could be the key to our green energy future. Here’s why

‘All atrocity crimes are preventable’ and can never be justified – UN chief

What have the banks done to the markets making them unable to bear cheap oil?

Italian elections: a long political limbo is ahead

Global Talent – Professional Internships

Could Rwanda become Africa’s healthcare leader?

Beyond self-regulation: dealing with Europe’s consumption problem

The European Sting live from the World Economic Forum 2015 in Davos

Commission tries to solidify the EU statistical system

FROM THE FIELD: Finding refuge in the ‘beautiful game’

Is South Korea set to lose from its FTA with the EU?

Close to final agreement on the EU Banking Union

EU prepares a banking union amidst financial ruins

Banks suffocate the real economy by denying loans

Commission goes less than mid-way on expensive euro

The EU Parliament unanimously rejects Commission’s ideas about ‘seeds’

Horn of Africa: UN chief welcomes Djibouti agreement between Eritrea, Ethiopia and Somalia

More Stings?

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s