The EU is to introduce tougher criminal laws to tackle money laundering, including harmonised rules on offences and sanctions across all member states, in a bid to ensure that criminals and terrorists face equally severe penalties across the whole EU
Currently, all member states criminalise money laundering, but definitions of criminal offences and sanctions related to money laundering vary. The European Commission says these differences leave existing national rules open to exploitation by terrorists and criminals, who are more likely to commit crimes where penalties are less stringent.
The newly agreed rules harmonise the definition of criminal offences and sanctions related to money laundering, including the proceeds of cybercrime, and remove obstacles to cross-border judicial and police cooperation.
They include the option for member states to increase sanctions in cases where there are aggravating circumstances, such as money laundering linked to criminal organisations or offences conducted in the exercise of certain professional activities. EU member states may also define such aggravating circumstances on the basis of the value of property or money being laundered or the nature of the offence. It will also be possible to hold legal entities liable for certain money laundering activities, and such entities may face a range of sanctions.
To remove obstacles to cross-border judicial and police cooperation, the EU will set common provisions for the investigation of money laundering-related offences. In cross-border cases, the EU will also provide clearer rules to define which member state has jurisdiction and the cooperation between the member states concerned, as well as the need to involve Eurojust.
Julian King, commissioner for the security union, said: ‘We need to hit terrorists and criminals in their pockets – cutting off their access to money is a vital part of preventing their crimes. The new rules agreed today are an important step in the fight against the financing of terrorism, helping to pave the way towards an effective and genuine security union.’
The directive to increase criminalisation of money laundering has been agreed between the EU Presidency and the European Parliament and now requires formal consent before coming into force.
Report by Pat Sweet
