Activities of Frank ENGEL related to 2013/0025(COD)
Shadow reports (2)
RECOMMENDATION FOR SECOND READING on the Council position at first reading with a view to the adoption of a directive of the European Parliament and of the Council on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, amending Regulation (EU) No 648/2012 of the European Parliament and of the Council, and repealing Directive 2005/60/EC of the European Parliament and of the Council and Commission Directive 2006/70/EC PDF (151 KB) DOC (72 KB)
REPORT on the proposal for a directive of the European Parliament and of the Council on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing PDF (706 KB) DOC (782 KB)
Amendments (44)
Amendment 130 #
Proposal for a directive
Recital 13
Recital 13
(13) The use of the gambling sector to launder the proceeds of criminal activity is of concern. In order to mitigate the risks Gambling services with high payout ratios are at particular risk of being used for money laundering purposes; the risk is even grelated to the sector and to provide parity amongst the providers of gambling services, ar where these gambling services also have a high event frequency, where the outcome is not entirely subject to chance, and where very high stakes can be played for in a short period of time. An obligation for all providers of gambling services to conduct regular, if not enhanced, customer due diligence for single transactions (stakes and payouts) of EUR 2 000 or more should therefore be laid down. Member States should consider applying this threshold to the collection of winnings as well as wagering a stake. Providers of gambling services with physical premises (e.g. casinos and g, in any event wherever the average payout ratio exceeds 90 %. State-owned providers of gambling services with low average payout ratios, in any event whenever this ratio does not exceed 55 %, shall meet the requirements regarding customer due diligence for payouts of EUR 2 000 or more; this provision shall be without prejudice to Article 13. Gaming houses) should ensure that customer due diligence, if it is taken at the point of entry to the premises, can be linked to the transactions conducted by the customer on those premises.
Amendment 140 #
Proposal for a directive
Recital 17
Recital 17
(17) In order to better understand and mitigate risks at European Union level, Member States should share the results of their risk assessments with each other, the Commission and EBA, EIOPA and ESMA, ESMA and Europol, where appropriate.
Amendment 175 #
Proposal for a directive
Recital 42 a (new)
Recital 42 a (new)
(42a) To allow competent authorities and obliged entities to better evaluate the risks arising from certain transactions, the Commission should draw up a list of the jurisdictions outside the European Union that have implemented rules and regulations similar to those laid down in this Directive.
Amendment 196 #
Proposal for a directive
Article 2 – paragraph 1 – point 3 a (new)
Article 2 – paragraph 1 – point 3 a (new)
(3a) Member States may, after conducting risk analyses in accordance with Article 7, partially or in full exempt certain products provided by entities under (3) f). Before any exemption Member State shall seek the approval of the Commission.
Amendment 212 #
Proposal for a directive
Article 3 – paragraph 1 – point 5 – point a – point i – paragraph 1
Article 3 – paragraph 1 – point 5 – point a – point i – paragraph 1
A percentage of 25% plus one share shall be evidence of ownership or control through shareholding and applies to every level of direct anshareholding of 25% plus one share in the customer held by a natural person shall be an indication of direct ownership. A shareholding of 25% plus one share in the customer, held by a corporate entity, which is under the control of a natural person(s), or by multiple corporate entities, which are under the control of the same natural person, shall be an indication of indirect ownership. The notion of control shall be determined, inter alia, in accordance with the criteria in Article 22(1) to (5) of Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated findirect ownership; ancial statements and related reports of certain types of undertakings [...][1]. [1] OJ L 182, 29.6.2013, p.19.
Amendment 217 #
Proposal for a directive
Article 3 – paragraph 1 – point 5 – point a – point ii
Article 3 – paragraph 1 – point 5 – point a – point ii
(ii) if there is any doubt that the person(s) identified in point (i) are the beneficial owner(s), the natural person(s) who exercises control over the management of a legal entity through other means; or if after having taken all the necessary measures no person can be found under point (i), the natural person(s) who exercises control over the legal entity or its management through other means, which may include senior managing officials;
Amendment 219 #
Proposal for a directive
Article 3 – paragraph 1 – point 5 – point a – point ii a (new)
Article 3 – paragraph 1 – point 5 – point a – point ii a (new)
(iia) where no natural person is identified under (i) or (ii), the identity of the relevant natural person who holds the position of senior managing official;
Amendment 222 #
Proposal for a directive
Article 3 – paragraph 1 – point 5 – point b – point iii a (new)
Article 3 – paragraph 1 – point 5 – point b – point iii a (new)
(iiia) For trusts, the identity of the settlor, trustee(s), the protector (if any), the beneficiary or class of beneficiaries, and any other natural person exercising ultimate effective control over the trust (including through a chain of control or ownership);
Amendment 237 #
Proposal for a directive
Article 4 – paragraph 1
Article 4 – paragraph 1
1. Member States shall, in accordance with the risk assessment, ensure that the provisions of this Directive are extended in whole or in part to professions and to categories of undertakings, other than the obliged entities referred to in Article 2(1), which engage in activities which are particularly likely to be used for money laundering or terrorist financing purposes.
Amendment 279 #
Proposal for a directive
Article 7 – paragraph 5
Article 7 – paragraph 5
5. Member States shall make the results of their risk assessments available to the other Member States, the Commission, and EBA, EIOPA and ESMA, ESMA and Europol upon request.
Amendment 280 #
Proposal for a directive
Article 8 – paragraph 1
Article 8 – paragraph 1
1. Member States shall ensure that obliged entities take appropriate steps to identify and assess their money laundering and terrorist financing risks, in particular with the introduction of effective model risk management frameworks that include model development and implementation as well as effective validation taking into account risk factors including customers, countries or geographic areas, products, services, transactions or delivery channels. These steps shall be proportionate to the nature and size of the obliged entities.
Amendment 284 #
Proposal for a directive
Article 8 – paragraph 4 – point a
Article 8 – paragraph 4 – point a
(a) the development of internal policies, procedures and controls, including model risk management practices, customer due diligence, reporting, record keeping, internal control, compliance management (including, when appropriate to the size and nature of the business, the appointment of a compliance officer at management level) and employee screening;
Amendment 292 #
Proposal for a directive
Article 10 – paragraph 1 – point d – introductory part
Article 10 – paragraph 1 – point d – introductory part
(d) for providers of gambling services, when carrying out occasional transactions amounting to EUR 2 000 or more, whether the transaction is carried out in a single operation or in several operations which appear to be linked;
Amendment 302 #
Proposal for a directive
Article 10 – paragraph 1 – point d – indent 1 (new)
Article 10 – paragraph 1 – point d – indent 1 (new)
when carrying out occasional transactions amounting to EUR 2.000 or more, whether the transaction is carried out in a single operation or in several operations which appear to be linked;
Amendment 303 #
Proposal for a directive
Article 10 – paragraph 1 – point d – indent 2 (new)
Article 10 – paragraph 1 – point d – indent 2 (new)
- except in the case of lotteries organised by State-owned enterprises with low average payout ratios (in any event under 55 %); in this case, customer due diligence applies to payouts of EUR 2 000 or more.
Amendment 308 #
Proposal for a directive
Article 10 a (new)
Article 10 a (new)
Article 10a 1 Member States shall not require obliged entities to apply customer due diligence measures in respect of electronic money, as defined in Article 2(2) of Directive 2009/110/EC of the European Parliament and of the Council if all of the following conditions are fulfilled: (a) the payment instrument is not reloadable; (b) the maximum amount stored electronically does not exceed EUR 250, Member States may increase this limit up to EUR 500 for payment instruments that can only be used in that one particular Member State; (c) the payment instrument is used exclusively to purchase goods or services; (d) the payment instrument cannot be funded with electronic money. 2. Member States shall ensure that customer due diligence measures are always applied before redemption of the monetary value of the electronic money exceeding EUR 250.
Amendment 322 #
Proposal for a directive
Article 13 – paragraph 1
Article 13 – paragraph 1
1. Where a Member State or an obliged entity identifies areas of lower risk, that Member State may allow obliged entities to apply simplified customer due diligence measures. Providers of gambling services whose average payout ratio exceeds 90 % shall not be permitted simplified customer due diligence.
Amendment 341 #
Proposal for a directive
Article 17 – paragraph 1 – introductory part
Article 17 – paragraph 1 – introductory part
In respect of cross-frontier correspondent banking relationships with respondent institutions from third countries not subject to equivalent international standards, Member States shall, in addition to the customer due diligence measures as set out in Article 11, require their credit institutions to:
Amendment 356 #
Proposal for a directive
Article 25 – paragraph 2 a (new)
Article 25 – paragraph 2 a (new)
2a. The Commission shall provide a list of jurisdictions having anti-money laundering measures equivalent to provisions of this Directive and other related rules and regulations of the Union.
Amendment 357 #
Proposal for a directive
Article 25 – paragraph 2 b (new)
Article 25 – paragraph 2 b (new)
2b. The list mentioned under paragraph 2 a shall be regularly assessed and updated according to the information received from Member States as mentioned under paragraph 2.
Amendment 366 #
Proposal for a directive
Article 29 – paragraph 1
Article 29 – paragraph 1
1. Member States shall ensure that corporate or legal entities establishmpanies or any other legal person with a similar structure or function, trusts, foundations established or incorporated within their territory, obtain and holdr governed under their law, hold and transmit to a register adequate, accurate and current information on them and on their beneficial ownership., at the moment of establishment or any changes thereof;
Amendment 369 #
Proposal for a directive
Article 29 – paragraph 1 a (new)
Article 29 – paragraph 1 a (new)
1a. Regarding trusts or other types of legal arrangements, existing or future, with a similar structure and function, the information shall also include the identity of the settlor, of the trustee(s), of the protector (if any), of the beneficiaries or class of beneficiaries, and of any other natural person exercising ultimate effective control over the trust. Member States shall ensure that trustees disclose their status to obliged entities when, as a trustee, the trustee forms a business relationship or carries out an occasional transaction above the threshold set out in points (b), (c) and (d) of Article 10.
Amendment 398 #
Proposal for a directive
Article 30 – paragraph 1
Article 30 – paragraph 1
1. Member States shall ensure that trustees of any express trust governed under their law obtain and hold adequate, accurate and current information on beneficial ownership regarding the trust. This information shall include the identity of the settlor, of the trustee(s), of the protector (if relevanty), of the beneficiaries or class of beneficiaries, and of any other natural person exercising ultimate effective control over the trust.
Amendment 405 #
Proposal for a directive
Article 30 – paragraph 4
Article 30 – paragraph 4
4. Member States shall ensure that measures corresponding to those in paragraphs 1, 2 and 3 apply to other types of legal entity and arrangement with a similar structure andor function to trusts.
Amendment 444 #
Proposal for a directive
Article 39 – paragraph 1 – point b
Article 39 – paragraph 1 – point b
(b) in the case of business relationships and transactions, the supporting evidence and records, consisting of the original documents or copies admissible in court proceedings under the applicable national legislation for a period of five years following either the carrying-out of the transactions or the end of the business relationship, whichever period is the shortest. Upon expiration of this period, personal data shall be deleted, unless otherwise provided for by national law, which shall determine under which circumstances obliged entities may or shall further retain data. Member States may allow or require further retention only if necessary for the prevention, detection or investigation of money laundering and terrorist financing. The maximum retention period following either the carrying-out of the transactions or the end of the business relationship, whichever period ends first, shall not exceed ten years. The information may be retained for a longer period where it is necessary to do so in order to give effect to the commercial purposes of transactions or former relationship between the customer and the obliged entity.
Amendment 447 #
Proposal for a directive
Article 58 – paragraph 3
Article 58 – paragraph 3
3. Member States shall require obliged entities referred to in Article 2(1)(1) and (2) to have in place appropriate procedures for their employees to report breaches internally through a specific, independent and anonymous channel.
Amendment 449 #
Proposal for a directive
Article 40 a (new)
Article 40 a (new)
Amendment 463 #
Proposal for a directive
Article 43 – paragraph 3
Article 43 – paragraph 3
3. Member States shall ensure that, wherever practicable, timely feedback on the effectiveness of and follow-up to reports of suspected money laundering or terrorist financing is provided to obliged entities.
Amendment 483 #
Proposal for a directive
Article 53 – paragraph 1
Article 53 – paragraph 1
1. Member States shall encourage their FIUs to use protected channels of communication between FIUs and to use the decentralised computer network FIU.net.
Amendment 486 #
Proposal for a directive
Article 53 – paragraph 2
Article 53 – paragraph 2
2. Member States shall ensure that, in order to fulfil their tasks as laid down in this Directive, their FIUs co-operate to apply sophisticated technologies in cooperation with Europol. These technologies shall allow FIUs to match their data with other FIUs in an anonymous way by ensuring full protection of personal data with the aim to detect subjects of the FIU's interests in other Member States and identify their proceeds and funds.
Amendment 492 #
Proposal for a directive
Article 54 – paragraph 1
Article 54 – paragraph 1
Member States shall ensure that their FIUs cooperate with Europol regarding analyses carried outof on-going cases having a cross-border dimension concerning at least two Member States.
Amendment 495 #
Proposal for a directive
Article 55 – paragraph 1
Article 55 – paragraph 1
1. Member States shall ensure that obliged entities can be held liable for breaches of the national provisions adopted pursuant to this Directive. The penalties must be effective, proportionate and dissuasive.
Amendment 496 #
Proposal for a directive
Article 55 – paragraph 2
Article 55 – paragraph 2
2. Without prejudice to the right of Member States to impose criminal penalties, Member States shall ensure that competent authorities may take appropriate administrative measures and impose administrative sanctions where obliged entities referred to in Article 2(1)(1) and (2) breach the national provisions, adopted in the implementation of this Directive, and shall ensure that they are applied. Those measures and sanctions shall be effective, proportionate and dissuasive.
Amendment 497 #
Proposal for a directive
Article 56 – paragraph 1 – introductory part
Article 56 – paragraph 1 – introductory part
1. This Article shall at least apply to situations where obliged entities referred to in Article 2(1)(1) and (2) demonstrate systematic failings in relation to the requirements of the following Articles:
Amendment 498 #
Proposal for a directive
Article 56 – paragraph 1 – point b
Article 56 – paragraph 1 – point b
(b) 32, 33 and 34 (suspicious transaction reporting);
Amendment 501 #
Proposal for a directive
Article 56 – paragraph 2 – point d
Article 56 – paragraph 2 – point d
(d) a temporary ban against any member of the obliged entity's management bodymanagement body of the obliged entities referred to in Article 2(1)(1) and (2), who is held responsible, to exercise functions in institutions;
Amendment 518 #
Proposal for a directive
Article 58 a (new)
Article 58 a (new)
Article 58a 1. The processing of personal data for the purposes of this Directive shall be carried out in accordance with Directive 95/46/EC and, where relevant, Regulation (EC) No 45/2001. Any further processing of data for commercial purposes is prohibited. 2. Access by the data subject to information contained in a suspicious transaction report shall be prohibited. With the exception of the information contained in a suspicious transaction report, if a data subject's rights regarding their personal data are unduly limited or restricted by obliged entities or competent authorities, the data subject may refer the matter to their data protection authority in accordance with Directive 95/46/EC.
Amendment 523 #
Proposal for a directive
Annex 2 – paragraph 1 – point 1 – point c a (new)
Annex 2 – paragraph 1 – point 1 – point c a (new)
(ca) beneficial owners of pooled accounts held by notaries and other independent legal professionals from the Member States, or from third countries provided that they are subject to requirements to combat money laundering or terrorist financing consistent with international standards and are supervised for compliance with those requirements and provided that the information on the identity of the beneficial owner is available, on request, to the institutions that act as depository institutions for the pooled accounts.
Amendment 525 #
Proposal for a directive
Annex 2 – paragraph 1 – point 1 – point c a (new)
Annex 2 – paragraph 1 – point 1 – point c a (new)
(ca) Obliged entities where they are subject to requirements to combat money laundering and terrorist financing under this Directive and have effectively implemented those requirements;
Amendment 527 #
Proposal for a directive
Annex 2 – paragraph 1 – point 2 – point e a (new)
Annex 2 – paragraph 1 – point 2 – point e a (new)
(ea) Long term purpose-orientated savings agreements, serving for instance as a safeguard for retirement provisions or for the acquisition of self-used real estate and where the incoming payments originate from a payment account which is identified according to article 11 and 12 of the directive.
Amendment 528 #
Proposal for a directive
Annex 2 – paragraph 1 – point 2 – point e a (new)
Annex 2 – paragraph 1 – point 2 – point e a (new)
(ea) financial products low in value where repayment is conducted through a bank account in the name of the customer;
Amendment 531 #
Proposal for a directive
Annex 2 – paragraph 1 – point 2 – point e b (new)
Annex 2 – paragraph 1 – point 2 – point e b (new)
(eb) non-face-to-face business relationships or transactions where the identity can be verified electronically;
Amendment 532 #
Proposal for a directive
Annex 2 – paragraph 1 – point 2 – point e c (new)
Annex 2 – paragraph 1 – point 2 – point e c (new)
(ec) such products, services and transactions identified as low risk by the competent authorities of the home Member State of the obliged entities.
Amendment 534 #
Proposal for a directive
Annex 2 – paragraph 1 – point 3 – point d a (new)
Annex 2 – paragraph 1 – point 3 – point d a (new)
(da) jurisdictions identified by the Commission having anti-money laundering measures equivalent to those laid down by this Directive and other related rules and regulations of the Union;