Ahead of the discussion on ‘Swiss Secrets’ and anti-money laundering standards in third countries in the European Parliament’s plenary session on Wednesday 23 March, Eero Heinälouma (S&D, FINLAND) published his draft report on reforming the EU anti-money laundering framework on Monday 21 March.
Former Finnish Finance Minister and rapporteur for the Committee on Economic and Monetary Affairs, Mr Heinälouma expressed the urgency of reforming this framework. “Money-laundering thrives on secrecy and banks being able to operate in the shadows without consequence. It is high-time for strict EU wide rules to crack-down on money laundering”, he said in a statement (see EUROPE 12895/22).
Mr Heinälouma and Damien Carême (Greens/EFA, France), co-rapporteur for the Committee on Civil Liberties, suggested transforming the EU list of countries considered high risk, adding a number of criteria in the assessment of third countries, including alignment with the policy of targeted sanctions.
The co-rapporteurs also foresee the possibility for the Parliament and the Council of the EU to ask the European Commission for an analysis of a specific third country and that it can take measures against financial institutions in these countries, such as requiring the application of concrete enhanced due diligence measures.
“Tough anti-money laundering rules are one more powerful financial weapon to go after Putin and his regime. Breath-taking sums of money have been amassed and parked overseas by the oligarchs supporting Putin”, Mr Heinälouma added.
In line with the position adopted by the European Parliament in early March (see EUROPE 12907/12), the co-rapporteurs would like to ban “golden passports” in the EU, which are temporary or permanent residence permits designed to attract foreign capital to a country, through minimum standards and specific controls on the origin of the funds invested. Applicants from high-risk third countries, such as Russia, should not be granted any. However, if this is not possible due to the legal uncertainty surrounding the issue of ‘golden passports’, increased due diligence on the transactions concerned will be required.
Some sectors were also identified by Mr Heinälouma and Mr Carême as being at high risk for money laundering: asset managers, crowdfunding providers, top professional football clubs, football associations and sports agents, as well as real estate, art and other high-value goods.
They propose that cash transactions should be limited to €5,000 and not just €10,000. Finally, better data processing and a mandatory enhanced due diligence regime would be further tools in the fight against money laundering.
To read the draft report: https://aeur.eu/f/x2 (Original version in French by Anne Damiani)