Monday

19th Nov 2018

EU states bungle anti-money laundering laws, report says

The European Union's fight against money laundering is being hampered by member states' improper implementation of EU law across the bloc, according to a new report.

EU member states "fell some way short" of creating a consistent anti-money laundering regime across the EU when they implemented the 2001 second money laundering directive (2MLD), concluded the study released on Thursday (21 December) by the City of London Corporation – a local government body for London's financial district.

Read and decide

Join EUobserver today

Support quality EU news

Get instant access to all articles — and 18 year's of archives. 30 days free trial.

... or join as a group

  • Different laws in the bloc hamper EU anti-money laundering efforts (Photo: European Commission)

"An effective anti-money laundering regime, which deters and detects determined criminals without placing unrealistic burdens on honest businesses and their advisors, is essential if we are to maintain the integrity and effectiveness of the financial system," said Michael Snyder from the City of London Corporation.

"Within the EU single market, it is also vital that this regime operates in a uniform manner," he added in his statement, explaining that there were major discrepancies in the directive's scope and interpretation across the different EU countries.

The report pointed out that the way member states identified and reported suspicious actions differed from each other, while some countries are too slow to react to fishy money movements making it impossible to take action against them.

It also says that the 2MLD rules on "tipping off" clashes with the EU's own Data Protection Directive giving the customer the right to obtain access about him- or herself.

The directive was meant to be implemented in 2003 for the 15 old EU member states and in 2004 for the 10 new EU countries. But Italy was six months late while, Greece implemented the law two and a half years late.

The City of London analysed in detail how the directive was implemented in six countries - UK, Spain, Italy, Greece, Poland and Lithuania.

The report comes as European policy makers and regulators will strive to implement the third money laundering directive in 2007.

Italy defiant on budget on eve of EU deadline

Italy would be committing economic "suicide" if it fell in line with EU rules, its deputy leader has said, in a sign that Rome has little intention of bowing to pressure ahead of Tuesday's budget deadline.

Greek austerity violated right to health, says watchdog

Cuts in the Greek health care system, following the austerity cuts demanded in return for international bailouts, have violated the European Social Charter on the right to health, says Council of Europe's human rights commissioner, Dunja Mijatovic.

Analysis

Salvini is gambling with core voters' future in budget battle

Businesses in northern Italy are anxiously watching the standoff between the European Commission and the Italian government. They used to be the 'Northern League's' most important electorate - but the party's profile and priorities have changed.

EU commission eyes majority tax rules

The commission plans to address tax avoidance schemes in some EU states by shifting tax decisions away from unanimity to a majority system in what amounts to a long shot.

News in Brief

  1. Ireland extradites Polish man despite rule of law concerns
  2. Germany and France agree eurozone budget framework
  3. Austrian foreign minister: EU's Israel policy 'too strict'
  4. Soros and Kurz discuss Central European University move
  5. EU set to tighten rules on foreign strategic investment
  6. Macron repeats call for unified Europe in Bundestag speech
  7. US warns EU banks and firms against trading with Iran
  8. Merkel urged Romania not to move embassy to Jerusalem

Stakeholder

An open China brings opportunities to Europe

Some 60 years ago, the first major World Fair after World War II was held in Brussels. Sixty years on, China International Import Expo (CIIE), the first world expo dedicated to expanding imports, will open in Shanghai, China.

Stakeholders' Highlights

  1. NORDIC COUNCIL OF MINISTERSTheresa May: “We will not be turning our backs on the Nordic region”
  2. International Partnership for Human RightsOpen letter to Emmanuel Macron ahead of Uzbek president's visit
  3. International Partnership for Human RightsRaising key human rights concerns during visit of Turkmenistan's foreign minister
  4. NORDIC COUNCIL OF MINISTERSState of the Nordic Region presented in Brussels
  5. NORDIC COUNCIL OF MINISTERSThe vital bioeconomy. New issue of “Sustainable Growth the Nordic Way” out now
  6. NORDIC COUNCIL OF MINISTERSThe Nordic gender effect goes international
  7. NORDIC COUNCIL OF MINISTERSPaula Lehtomaki from Finland elected as the Council's first female Secretary General
  8. NORDIC COUNCIL OF MINISTERSNordic design sets the stage at COP24, running a competition for sustainable chairs.
  9. Counter BalanceIn Kenya, a motorway funded by the European Investment Bank runs over roadside dwellers
  10. ACCACompany Law Package: Making the Best of Digital and Cross Border Mobility,
  11. International Partnership for Human RightsCivil Society Worried About Shortcomings in EU-Kyrgyzstan Human Rights Dialogue
  12. UNESDAThe European Soft Drinks Industry Supports over 1.7 Million Jobs

Latest News

  1. Panic is not answer to EU's security challenges
  2. Dutch flesh out proposal for EU human rights sanctions
  3. EU cheerleaders go to Russia-occupied Ukraine
  4. EU must recognise new force for Balkans destabilisation
  5. Brexit dominates EU affairs This WEEK
  6. How the EU commission got tunnel vision on self-driving cars
  7. No-confidence calls against May put Brexit deal in doubt
  8. Key points of the Brexit deal (if it ever comes into effect)

Join EUobserver

Support quality EU news

Join us