Brussels, 19/09/2005 (Agence Europe) - The Directorate General for the Internal Market of the Commission has published a working document on its web site, on the application measures for the third directive on use of the financial system for the purposes of money laundering or the financing of terrorism (see EUROPE 8963 and 8956). Interested parties have until 21 October 2005 to send in their observations. The Commission can adopt application measures on the following subjects: 1) taking account of technical progress in the fight against money laundering and the financing of terrorism; 2) changes to the sums stipulated in the directive; 3) measures relating to third countries. It proposes to set priorities and, first and foremost, to concentrate on "situations representing a low risk of money laundering", i.e. "occasional or limited financial activities". It also feels that a better definition of the expression "politically exposed persons" is necessary, in line with changes called for by the EP. This expression aims to include the recommendation of the Financial Action Task Force on Money Laundering (FATF), of keeping a close eye on movements involving the funds of people who place their money in third countries, in the third directive.
The working document refers to definition of a politically exposed person as established in the third directive. This can be any physical person, who holds or has been entrusted with a major public function, and any member of his or her close family or a close associate. The Commission considers that drawing up an exhaustive list of categories of persons is "too rigid an approach". It has proposed solutions for a detailed interpretation of the following elements: important public function, close family and close associates.
The third directive on the fight against money laundering, which is soon to be published in the Official Journal of the EU, replaces directive 91/3008/EEC and extends its scope to the funding of terrorism and serious infringements, such as corruption and fraud. It covers new financial establishments and new professions: foundations, trust funds, life-assurance brokers and any person selling goods or services paid for in cash for a sum in excess of 15,000 EUR. Lawyers, notaries, accountants, estate agents, art dealers, jewellers, auctioneers and casinos were already covered by the first directives.