The European Commission has put forward a proposal to update and extend the 1991 Money Laundering Directive to meet the ever-evolving threat posed by the activity. There was unanimous agreement at the Tampere European Council in October 1999 that amendments were necessary and should be adopted “as soon as possible”. The passing of this new legislation is also one of the objectives of the Financial Services Action Plan and a key part of the French presidency’s work programme.
The main amendments contained in the proposal are to widen the prohibition of money laundering and extend the existing obligations to certain non-financial activities and professions. There is also a significant set of new obligations that would apply to non-face-to-face transactions involving credit or financial institutions.
The prohibition of money laundering
Under the 1991 directive the definition of money laundering only extended to the proceeds of drugs trafficking. The proposed directive would extend it to activities linked to organised crime or those that damage the European Community’s financial interests. This is not too significant for those subject to the 1993 regulations, which makes it an offence to launder the proceeds of any indictable offence. The United Kingdom Permanent Representation to the European Union is pushing for the definition to be further extended to the proceeds of “all serious crimes” but this is proving surprisingly controversial with some member states.
