Question on money-laundering

Question by Sarah Ludford (H-0208/06)

Subject: Money-laundering directive

Is the Commission planning an EU-wide information campaign to ensure that organisations which will have to comply with the new directive on money-laundering and terrorist financing 2005/60/EC (e.g. banks and legal firms) have sufficient information on new procedures?

Charlie McCreevy, Member of the Commission. The Commission recognises the importance of raising awareness on the new, more comprehensive EU regime against money laundering and terrorist financing. That is why the Commission has already undertaken a number of information initiatives. In that context I would like to mention: first, the Commission's participation in outreach efforts vis-à-vis European professional organisations initiated by the OECD Financial Action Task Force on Money Laundering and Terrorist Financing; secondly, the ongoing consultation on the impact of the second Anti-Money Laundering Directive on the legal profession, which will lead to the publication of a report this summer, probably in July; thirdly, an extensive consultation of all stakeholders in the context of the preparation of possible implementing measures under the third Anti-Money Laundering Directive; fourthly, participation in conferences organised by Member States as part of their responsibilities for implementing EU money laundering directives.

In view of those ongoing initiatives, the Commission currently is not planning to conduct a further EU-wide information campaign. However, the Commission continues to monitor closely the implementation of the directive, and it would not rule out further actions if there are shown to be problems in particular sectors and EU action would have added value.

Sarah Ludford (ALDE), author. - Commissioner, that all sounds very good, but my eye was caught by something in the Law Society of England and Wales's new money laundering newsletter. It referred to an extensive industry that has developed around services aiming to help lawyers with their compliance duties. It struck me that, as the third money laundering directive brought in the notion of proportionate checks of risk sensitivity, we need to make sure that the compliance falls where the really serious risks are. Often constituents come to me because as individuals they have difficulties opening bank accounts. I hope that you will convey that message. It truly has to be risk-sensitive compliance.

Charlie McCreevy, Member of the Commission. In this particular directive the point about risk sensitivity is well made. There are different categories of risk and the authorities should draw up their procedures on the basis of those risk assessments. That is clearly specified in the third directive, and the point is well taken by the MEP.

I would not like to see a whole industry developing around people charging exorbitant fees for what should be a relatively reasonable procedure. The levels of risk should be assessed. There is very little to be done for those at a low level of risk, and there are higher categories. That is clearly set out in the directive. I thank the honourable Member for raising this question, because it gives me an opportunity to emphasise the point that she made in her supplementary question.

James Hugh Allister (NI). - Commissioner, bearing in mind that the IRA is believed after its Northern Bank robbery to have exploited money-laundering opportunities in Bulgaria, what specific steps are being taken to ensure that the authorities and organisations there, and indeed in Romania, are ready and able to implement the legislative requirements on money laundering and terrorist financing?

Charlie McCreevy, Member of the Commission. The honourable Member will be aware that part of the procedure that any applicant country must go through is that it must ensure that the directives of the Community are put into effect. That will apply equally to Bulgaria and Romania. The Member is probably also aware that these recommendations stem from the Financial Action Task Force - FATF, as it is known - and most countries around the world are bound to implement the recommendations of that particular body. In the EU we have taken it upon ourselves, in a directive, to implement the recommendations, which has been done in the third money laundering directive.

You can rest assured that Bulgaria will be taking those measures into account in its legislation, as it is part of its deal to acquire full membership of the European Union.