European Commission Proposes New Anti-Money Laundering Directive

On June 30, 2004, the European Commission made a proposal for a directive on the prevention of the use of the financial system for the purpose of money laundering, including terrorist financing. The proposed directive will complement the effort of the European Community to combat money laundering in its directives of 1991 and 2001. The 2001 amendment extended the scope both in terms of the crimes and the range of professions and activities covered. The 2001 Directive left open the precise definition of serious offenses and called on the Commission to table a further proposal in 2004 on this subject. In June 2003, the Financial Action Task Force on Money Laundering (FATF) revised its recommendations that now cover terrorist financing. The present proposal for a directive also makes specific reference to the combating of terrorist financing and acting to take account of the revised FATF Forty Recommendations...[more]