The first draft EU Council conclusions on strengthening financial investigations in the EU is ready for consideration by Member States. The adoption of the final conclusions is scheduled for June, according to our information.
At the end of February, the Croatian Presidency of the EU Council announced its intention to relaunch the discussion between the Member States on this issue (see EUROPE 12430/8). For the time being, the document reflects the outcome of the discussions that took place at the Standing Committee on Operational Cooperation on Internal Security (COSI) on 21 February.
The text, dated 25 March and of which EUROPE received a copy, recognises that the EU legal framework needs to be further strengthened in order to “keep up with the increasing integration of financial flows in the internal market, developing trends, raising volume and sophistication of frauds, technological advancements and the ingenuity of criminals trying to exploit any deficiencies and gaps in the system”.
In particular, there is the reference to the “follow the money” approach, which the Croatian Presidency is advocating and which is based on the principle that it is through the wallet, where it hurts, that criminals can be hit, and it is often through banking transactions that they can be unmasked.
The text asks the Commission to strengthen the effectiveness of the European framework for the management of frozen assets. It further suggests that asset recovery offices be given additional powers, including an emergency temporary freezing power as a preventive measure to prevent the dissipation of assets.
Other suggestions: to consider the possibility for law enforcement and judicial authorities to use part of the confiscated assets to support further investigations, in particular those with a cross-border dimension, and to further harmonise deadlines for the exchange of information related to financial investigations.
According to the text, “more harmonised, immediate and direct” access by asset recovery offices to different public registers, such as central company registers, would also be welcome.
The Commission is also invited to continue its reflections on the possibility of creating a coordination and support mechanism for the cross-border work of national financial intelligence units (FIUs) - a request from the Ecofin Council (see EUROPE 12378/15).
The text also asks the Commission to: - examine the need to set a European limit for cash payments in order to reduce the potential for cash laundering; - study the possibility of extending the European framework to virtual currencies which are not exchangeable for paper money.
It also calls on Europol to set up a European Centre for Combating Financial and Economic Crime to support the activities of Member States in their fight against fraud and money laundering. Finally, it suggests that the EU Council should draw up a comprehensive action plan on financial investigations.
Member States have until 10 April to submit their comments to the Presidency on this text. (Original version in French by Marion Fontana)