Wednesday

26th Jun 2019

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.

EU top court backs Canada trade deal in ruling

The European Court of Justice ruled on Tuesday that the EU-Canada free trade agreement, and its controversial dispute settlement mechanism, is in line with the bloc's rules.

EU and Japan in delicate trade talks

The Japanese PM comes to Brussels to discuss the first results of the new EU-Japan free trade deal, plus WTO reform - a sensitive topic before he moves onto Washington to face Donald Trump.

News in Brief

  1. EU universities to share students, curricula
  2. Migrant rescue ship loses Human Rights Court appeal
  3. Denmark completes social democrat sweep of Nordics
  4. Johnson offers 'do or die' pledge on Brexit
  5. Weber indirectly attacks Macron in newspaper op-ed
  6. EU to sign free trade deal with Vietnam
  7. EU funding of air traffic control 'largely unnecessary'
  8. Share trading ban looms as Swiss row with EU escalates

Feature

Romania enlists priests to promote euro switchover plan

Romania is due to join the single currency in 2024 - despite currently only meeting one of the four criteria. Now the government in Bucharest is enlisting an unlikely ally to promote the euro to the public: the clergy.

Trump and Kurz: not best friends, after all

The visit of Austrian chancellor Sebastian Kurz to the White House on Wednesday showed that the current rift in transatlantic relations is deepening by the day.

Stakeholders' Highlights

  1. International Partnership for Human RightsEU-Uzbekistan Human Rights Dialogue: EU to raise key fundamental rights issues
  2. Nordic Council of MinistersNo evidence that social media are harmful to young people
  3. Nordic Council of MinistersCanada to host the joint Nordic cultural initiative 2021
  4. Vote for the EU Sutainable Energy AwardsCast your vote for your favourite EUSEW Award finalist. You choose the winner of 2019 Citizen’s Award.
  5. Nordic Council of MinistersEducation gets refugees into work
  6. Counter BalanceSign the petition to help reform the EU’s Bank
  7. UNICEFChild rights organisations encourage candidates for EU elections to become Child Rights Champions
  8. UNESDAUNESDA Outlines 2019-2024 Aspirations: Sustainability, Responsibility, Competitiveness
  9. Counter BalanceRecord citizens’ input to EU bank’s consultation calls on EIB to abandon fossil fuels
  10. International Partnership for Human RightsAnnual EU-Turkmenistan Human Rights Dialogue takes place in Ashgabat
  11. Nordic Council of MinistersNew campaign: spot, capture and share Traces of North
  12. Nordic Council of MinistersLeading Nordic candidates go head-to-head in EU election debate

Latest News

  1. EU moves to end car-testing 'confidentiality clause'
  2. EU parliament gives extra time for leaders on top jobs
  3. Europe's rights watchdog lifts Russia sanctions
  4. EU-Vietnam trade deal a bad day for workers' rights
  5. EU 'special envoy' going to US plan for Palestine
  6. Polish judicial reforms broke EU law, court says
  7. EU study: no evidence of 'East vs West' food discrimination
  8. Russia tried to stir up Irish troubles, US think tank says

Join EUobserver

Support quality EU news

Join us