Eurolink News

Ireland faces fines over failure to curb money-laundering (29/10/08

October 29, 2008 at 1:31 pm Leave a comment

The government is being threatened with legal action over its failure to adopt EU anti-money laundering rules. All member states had agreed to enact the legislation by December 2007, but Ireland is one several EU countries that has been referred to the European Court of Justice for its continued inaction on the matter.
Dublin MEP Proinsias de Rossa is demanding an explanation for the delay. ‘The government has been aware since 2005 that it was due to enact this law by last year,’ said the Labour MEP. ‘But it hasn’t done so, despite informal and formal warnings from the EU. The Commission has now been left with no option but to take Ireland to court.’
The new legislation is aimed at tightening controls against the laundering of money made from drug smuggling, people trafficking and terrorist dealings. It updates existing laws, including the first EU directive on money-laundering adopted in 1991, which required banks to identify their customers and report suspicious transactions to the gardaí or the Revenue Commissioners. The second directive in 2001 extended these obligations to solicitors, accountants, auctioneers and dealers in ‘high value’ goods processing cash amounts over €15,000. The third directive – which is the one the government has not yet enacted – will introduce a system of monitoring of compliance by lawyers, accountants, auctioneers and dealers in high value goods. It also gives greater protection for employees who want to report suspicious transactions.
Mr de Rossa says the new rules are needed to prevent money launderers from exploiting the free movement of capital throughout the European Union. He’s called on the government to state when it will enact the directive.

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