money laundering and terrorist financing – challenges from a european perspective public hearing...
TRANSCRIPT
![Page 1: Money Laundering and Terrorist Financing – Challenges from a European Perspective Public hearing on tax and financial havens 21 March 2012](https://reader036.vdocuments.site/reader036/viewer/2022062519/56649eba5503460f94bc2276/html5/thumbnails/1.jpg)
Money Laundering and Terrorist Financing –
Challenges from a European Perspective
Public hearing on tax and financial havens21 March 2012
![Page 2: Money Laundering and Terrorist Financing – Challenges from a European Perspective Public hearing on tax and financial havens 21 March 2012](https://reader036.vdocuments.site/reader036/viewer/2022062519/56649eba5503460f94bc2276/html5/thumbnails/2.jpg)
Structure
•What is Money Laundering and Terrorist Financing?•Policy response•What next?
![Page 3: Money Laundering and Terrorist Financing – Challenges from a European Perspective Public hearing on tax and financial havens 21 March 2012](https://reader036.vdocuments.site/reader036/viewer/2022062519/56649eba5503460f94bc2276/html5/thumbnails/3.jpg)
Money Laundering/Terrorist Financing
• ML: The conversion of the proceeds of illicit activity into apparently “clean” assets.
• TF: The financing of: - terrorist acts - terrorists - terrorist organisations
![Page 4: Money Laundering and Terrorist Financing – Challenges from a European Perspective Public hearing on tax and financial havens 21 March 2012](https://reader036.vdocuments.site/reader036/viewer/2022062519/56649eba5503460f94bc2276/html5/thumbnails/4.jpg)
How Does Money Laundering Work? – The Theory
Placement
Layering
Integration
![Page 5: Money Laundering and Terrorist Financing – Challenges from a European Perspective Public hearing on tax and financial havens 21 March 2012](https://reader036.vdocuments.site/reader036/viewer/2022062519/56649eba5503460f94bc2276/html5/thumbnails/5.jpg)
The Policy Response
• FATF• UE
![Page 6: Money Laundering and Terrorist Financing – Challenges from a European Perspective Public hearing on tax and financial havens 21 March 2012](https://reader036.vdocuments.site/reader036/viewer/2022062519/56649eba5503460f94bc2276/html5/thumbnails/6.jpg)
• Policy-making body• FATF standards• Mutual evaluations
FATF
![Page 7: Money Laundering and Terrorist Financing – Challenges from a European Perspective Public hearing on tax and financial havens 21 March 2012](https://reader036.vdocuments.site/reader036/viewer/2022062519/56649eba5503460f94bc2276/html5/thumbnails/7.jpg)
EU Directive 2005/60/EC
Main features:
• Prohibits money laundering and terrorist financing• Imposes customer due diligence and reporting obligations
to financial and some non financial businesses and professions
• Obliges Member States to establish a Financial Intelligence Unit
• Protection of employees against threats or hostile actions• No tipping-off• Record keeping (5 years after end of relationship for CDD)• CDD and record keeping to be applied to branches and
subsidiaries outside the EU• Compulsory supervision
![Page 8: Money Laundering and Terrorist Financing – Challenges from a European Perspective Public hearing on tax and financial havens 21 March 2012](https://reader036.vdocuments.site/reader036/viewer/2022062519/56649eba5503460f94bc2276/html5/thumbnails/8.jpg)
Directive 2005/60/EC
The directive has been transposed in all EEA countries
It is only one element in a broader legal framework which also comprises:- Regulation 1781/2006 on payer information
accompanying transfers of funds - EU legal instruments on freezing of assets- Council Decision 2000/642 on FIUs cooperation
etc.- Commission Directive of 1 August 2006
![Page 9: Money Laundering and Terrorist Financing – Challenges from a European Perspective Public hearing on tax and financial havens 21 March 2012](https://reader036.vdocuments.site/reader036/viewer/2022062519/56649eba5503460f94bc2276/html5/thumbnails/9.jpg)
Revision of the Directive 2005/60/EC
• Evolution, not revolution• AMLD regimes basically work – but
modifications necessary in light of new technologies, market changes and new threats.
• EU legislation must be adapted to new international standards
• Proposal of Directive: October 2012
![Page 10: Money Laundering and Terrorist Financing – Challenges from a European Perspective Public hearing on tax and financial havens 21 March 2012](https://reader036.vdocuments.site/reader036/viewer/2022062519/56649eba5503460f94bc2276/html5/thumbnails/10.jpg)
Conclusion
• What next?• Towards the Fourth AMLD• FATF 4th Round• Developing effectiveness
assessment• Reacting to new threats
![Page 11: Money Laundering and Terrorist Financing – Challenges from a European Perspective Public hearing on tax and financial havens 21 March 2012](https://reader036.vdocuments.site/reader036/viewer/2022062519/56649eba5503460f94bc2276/html5/thumbnails/11.jpg)
Tentative timing for revision of framework
2012
15 February
Adoption of new FATF standards
April Adoption of Commission Report
June Close public consultation
End October 2012
Adoption of an EU proposal to revise the 3rd AMLD
23 November
Possible public hearing to present main lines of planned changes
2013 2nd semester
Finalise negotiations (co-decision procedure)
Final quarter
Start of FATF evaluation process
![Page 12: Money Laundering and Terrorist Financing – Challenges from a European Perspective Public hearing on tax and financial havens 21 March 2012](https://reader036.vdocuments.site/reader036/viewer/2022062519/56649eba5503460f94bc2276/html5/thumbnails/12.jpg)
Thank you for your attention