On February 28, 2017 the Members of the European Parliament’s Committee on Economic and Monetary Affairs and of the Committee on Civil Liberties, Justice and Home Affairs voted on a Draft Report on the proposal for a directive of the European Parliament and of the Council amending Directive (EU) 2015/849 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing and amending Directive 2009/101/EC as prepared by Krišjānis Kariņš and Judith Sargentini as well as on proposed amendments to the report.

EU citizens could access registers of beneficial owners of companies without having to demonstrate a “legitimate interest,” and trusts would have to meet the same transparency requirements as firms, under amendments, agreed by Committees on February 28, 2017, to the EU Anti-Money Laundering Directive.

 

The amendments, agreed by the Economic and Monetary Affairs and Civil Liberties committees, would plug gaps in the EU’s framework legislation against money laundering and terrorism financing. They would also introduce stricter transparency rules to prevent tax evasion. The amended report was passed by 89 votes to 1, with 4 abstentions.

 

Wider access to registers

The proposal would enable EU citizens to access beneficial ownership registers without having to demonstrate a “legitimate interest” in the information, a requirement that currently restricts access to authorities and professionals such as journalists and lobbyists.

 

“Complex company structures and shelf companies make it easy for people to hide money.  Through a public register for companies and trusts, the European Parliament wants to shed light on these structures and thereby combat them,“ said Judith Sargentini (Greens/EFA, NL), a co-rapporteur on the file.

 

Trusts included

The scope of the AMLD has also been expanded to cover trusts and “other types of legal arrangements having a structure or functions similar to trusts.” These were previously excluded from the directive on privacy grounds. Trusts will now have to meet the full transparency requirements of firms including the need to identify beneficial owners.

 

Virtual currency platforms and custodian wallet providers have also been brought within the scope of the directive. Although virtual currencies account for only a small share of global financial transactions – around 70, 000 virtual currency transactions are made daily, according to the European Central Bank – some EU member states and the European Banking Authority say they pose risks.

 

Under the amendments, virtual currency platforms would have the same obligation as banks and other payment institutions to scrutinize their customers. This includes verifying identity details and monitoring their financial transactions, to reduce the risk of virtual currencies being used to launder criminal proceeds.

 

Next steps

The committees voted by 92 votes to 1, with 1 abstention to enter into negotiations with the Council.  Parliament as a whole must now give the go-ahead in the March plenary session for MEPs to start three-way talks with the EU Commission and Council.

 

Click here to be forwarded to the Draft Report as available on the website of the European Parliament.

 

Click here to be forwarded to the proposed Amendments 50 – 290 to the Draft Report as prepared by Krišjānis Kariņš, Judith Sargentini.

 

Click here to be forwarded to the proposed Amendments 291 – 467 to the Draft Report as prepared by Krišjānis Kariņš, Judith Sargentini.

 

Unfortunately we were not able to locate the proposed amendments 1-49. Furthermore we unfortunately did not find any information on which amendments to the Draft Report were accepted and which were denied.

 

 

Copyright – internationaltaxplaza.info

 

 

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