Brussels, 05/04/2002 (Agence Europe) - The EU directive on money laundering that took effect on 4 December 2001 is an "enormous step forward" but, after the attacks on 11 September, the situation has changed practically every day, to the point that this very recent legislation already requires "rapid adjustment". This was confirmed during the week in Brussels by German Social Democrat Gerhard Schmid, one of the vice-presidents of the European Parliament. He considered that the "influence of the Parliament has considerably improved the directive and makes it an instrument that is still more effective to combat money laundering".
In his speech at a seminar on action against money laundering in Europe, Gerhard Schmid noted that, to date, "we have not been able to rule out the possibility that Bin Laden has made a part of his considerable legal income available" to finance terrorist activities. The MEP notes that, while in some countries action can be taken against money laundering even if it is not a matter of criminal proceeds, this is not the case in European Union legislation. In his view, "in concrete terms, the identification of the financing of terrorist operations will be still more difficult for banks than it would be for traditional money laundering".
Under these conditions, the MEP suggests above all: - a new definition of money laundering; - the introduction of a register for banking accounts throughout the European Union; - the extension of obligations arising from the European directive on money laundering to the subsidiaries of EU banks in third countries (he mainly cites the subsidiaries of British banks in the Channel Islands); - the ban on accounts in "shell banks" "banks which do not physically exist", "letter box" banks) and banks in countries that do not have effective legislation against money laundering or which are not willing to cooperate in money laundering; - and greater surveillance of accounts in "offshore" banks. According to Gerhard Schmid, all these requests can be carried out.