2016/0413(COD) | [ParlTrack]

Proposal for a regulation
Recital 15

(15) Prepaid cards are non-nominal cards storing monetary value or funds which can be used for payment transactions, for acquiring goods or services or for redemption of currency and which are not linked to a bank account. They are widely used for a variety of legitimate purposes and some of these instruments also present a clear social interest. As such prepaid cards are easily transferrable and can be used to transfer considerable value across external borders. It is therefore necessary to include prepaid cards in the definition of cash. This will allow for the possibility to extend the measures to certain types of prepaid cards if the evidence justifies it and with due regard to proportionality and practical enforceability.deleted

Amendment 101 #

Proposal for a regulation
Recital 15

(15) Prepaid cards are non-nominal cards storing or providing access to monetary value or funds which can be used for payment transactions, for acquiring goods or services or for redemption of currency and which are not linked to a bank account. They are widely used for a variety of legitimate purposes and some of these instruments also present a clear social interest. As such prepaid cards are easily transferrable and can be used to transfer considerable value across external borders. It is therefore necessary to include certain types of prepaid cards in the definition of cash, in particular if they can be bought without customer due diligence procedures (“anonymous prepaid cards”). This will allow for the possibility to extend the measures to certain types of prepaid cards if the evidence justifies it and with due regard to proportionality and practical enforceability.

Amendment 102 #

Proposal for a regulation
Recital 15

(15) PAnonymous prepaid cards are anon~~-nominal~~ymous cards storing monetary value or funds which can be used for payment transactions, for acquiring goods or services or for redemption of currency and which are not linked to a bank account. They are widely used for a variety of legitimate purposes and some of these instruments also present a clear social interest. As such anonymous prepaid cards are easily transferrable and can be used to transfer considerable value across external borders. It is therefore necessary to include anonymous prepaid cards in the definition of cash. This will allow for the possibility to extend the measures to ~~certain types of~~anonymous prepaid cards if the evidence justifies it and with due regard to proportionality and practical enforceability.

Amendment 103 #

Proposal for a regulation
Recital 16

Amendment 104 #

Proposal for a regulation
Recital 16

Amendment 105 #

Proposal for a regulation
Recital 16

Amendment 106 #

Proposal for a regulation
Recital 16

(16) For the prevention of money laundering and the financing of terrorism, an obligation to declare should be imposed on natural persons entering or leaving the Union. In order not to restrict free movement unduly or overburden citizens and authorities with administrative formalities, the obligation should be subject to a threshold of EUR 10 000 or its equivalent in if the total value of cash they carry in any currency, commodities used as a highly liquid store of value, bearer- negotiable instruments, and anonymous pre-paid cards~~' worth or o~~ valued at their ~~currencies. It~~maximum store of money exceeds a threshold of EUR 10 000. The obligation to declare should apply to natural persons carrying such amounts on their person, in their luggage or in the conveyance in which they cross the external border. They should be required to make the cash available to the competent authorities for control. In order not to restrict free movement unduly or overburden innocent citizens and authorities with administrative formalities, natural persons carrying less such cash should not be obliged to submit a declaration.

Amendment 107 #

Proposal for a regulation
Recital 16

(16) For the prevention of money laundering ~~and~~, the financing of terrorism, and other activities contrary to the security of the Union as a whole and of its Member States an obligation to declare should be imposed on natural persons entering or leaving the Union. In order not to restrict free movement unduly or overburden citizens and authorities with administrative formalities, the obligation should be subject to a threshold of EUR 10 000 or its equivalent in commodities used as a highly liquid store of value, bearer-negotiable instruments, pre-paid cards' worth or other currencies. It should apply to natural persons carrying such amounts on their person, in their luggage or in the conveyance in which they cross the external border. They should be required to make the cash available to the competent authorities for control.

Amendment 108 #

Proposal for a regulation
Recital 17

(17) As regards movements of cash that is not accompanied by its owner, sender, intended recipient or their representative, such as cash entering or leaving the Union in postal packages, courier shipments, unaccompanied luggage or containerised cargo, the competent authorities at the external border should have the power to require the sender or the recipient or their representative to make a disclosure declaration. Such disclosure should cover a number of elements, such as the origin, destination, economic provenance and intended use of the funds, which are not covered by the usual documentation submitted to customs, such as shipping documents and customs declarations. This will allow the competent authorities to carry out risk analysis and concentrate their efforts on those shipments which they deem to present the highest risk, while not imposing systematic additional formalities. The disclosure obligation should be subject to a threshold ~~identical to~~significantly lower than that for cash carried by natural persons.

Amendment 109 #

Proposal for a regulation
Recital 19

(19) As regards the obligation to declare and the disclosure obligation, competent authorities should be vested with the power to carry out all requisite controls on persons, their luggage, the conveyance used to cross the external border and any unaccompanied consignment or receptacle crossing that border which may contain cash, or a means of transport carrying them. In the event of failure to comply with the obligations, the competent authorities should establish an ex officio declaration for subsequent communication of the relevant information to other authorities.deleted

Amendment 110 #

Proposal for a regulation
Recital 20

(20) Where they detect amounts of cash below the threshold but there are indications that the cash may be linked to criminal activity as defined in this Regulation, competent authorities should be able to record essential information on the persons carrying the cash, such as their identity details and nationality, and details regarding the means of transport used, such as the type of the conveyance, its point of departure and destination.deleted

Amendment 111 #

Proposal for a regulation
Recital 20

Amendment 112 #

Proposal for a regulation
Recital 20

(20) Where they detect amounts of cash below the threshold, but between EUR 7500 and EUR 9999, but there are indications that the cash may be linked to criminal activity as defined in this Regulation, competent authorities should be able to record essential information on the persons carrying the cash, such as their identity details and nationality, and details regarding the means of transport used, such as the type of the conveyance, its point of departure and destination.

Amendment 113 #

Proposal for a regulation
Recital 21

(21) That information should be passed on to the Financial Intelligence Unit of the Member State in question. Those units are designated as the hub elements in the fight against money-laundering and terrorist financing who receive and process information from various sources such as financial institutions and analyse it in order to determine if there are grounds for further investigation that may not be apparent to the competent authorities who collect the declarations and perform controls under this Regulation.deleted

Amendment 114 #

Proposal for a regulation
Recital 21

(21) That information should be passed on to the Financial Intelligence Unit of the Member State in question, which should promptly make it available to the Financial Intelligence Units of the other Member States. Those units are designated as the hub elements in the fight against money-laundering and terrorist financing who receive and process information from various sources such as financial institutions and analyse it in order to determine if there are grounds for further investigation that may not be apparent to the competent authorities who collect the declarations and perform controls under this Regulation. For that purpose, an interconnection between the information exchange systems used by, respectively, competent authorities and Financial Investigations Units should be put in place. In order to further strengthen the cooperation between the Financial Intelligence Units, the Commission should assess the adequacy of establishing a Union Financial Intelligence Unit, and present a legislative proposal, if appropriate.

Amendment 115 #

Proposal for a regulation
Recital 21

(21) That information should be passed on to the Financial Intelligence Unit of the Member State in question, which should swiftly transfer this information to the Financial Intelligence Units of the other Member States. Those units are designated as the hub elements in the fight against money-laundering and terrorist financing who receive and process information from various sources such as financial institutions and analyse it in order to determine if there are grounds for further investigation that may not be apparent to the competent authorities who collect the declarations and perform controls under this Regulation.

Amendment 116 #

Proposal for a regulation
Recital 21

Amendment 117 #

Proposal for a regulation
Recital 22

(22) The detection of a sub-threshold amount in situations where there are indications of criminal activity is highly relevant in this context. Consequently, it should also be possible to share information relating to sub-threshold amounts with the competent authorities in other Member States if there are indications of criminal activity.deleted

Amendment 118 #

Proposal for a regulation
Recital 23

(23) Considering that the movements of cash that are subject to controls under this Regulation take place across the external border, and given the difficulty of acting once the cash has left the point of entry or exit and the associated risk if even small amounts are used illicitly, the competent authorities should be able to seize and retain cash temporarily in certain specific circumstances, subject to checks and balances: first, where the obligation to declare or to disclose has not been met and, secondly, where there are severe indications of criminal activity, irrespective of the amount or whether the cash is carried by a natural person or is unaccompanied. In view of the nature of such temporary seizure and retention and the impact that it may have on the freedom of movement and the right to property, the period of retention should be limited to the absolute minimum time that other competent authorities require to determine whether there are grounds for further intervention, such as investigations or seizure of the cash based on other legal instruments. A decision to retain cash temporarily under this Regulation should be accompanied by a statement of reasons and adequately describe the specific factors that have given rise to the action. If at the end of the time limit no decision concerning the further intervention is taken or if the competent authority decides that there are no grounds to further retain the cash, it should immediately be made available to the declarant.

Amendment 119 #

Proposal for a regulation
Recital 23

(23) Considering that the movements of cash that are subject to controls under this Regulation take place across the external border, and given the difficulty of acting once the cash has left the point of entry or exit and the associated risk if even small amounts are used illicitly, the competent authorities should be able to seize and retain cash temporarily in certain circumstances, subject to checks and balances: first, where the obligation to declare or to disclose has not been met and, secondly, where there are indications of criminal activity, i~~rrespective of the amount or whether~~n an amount in excess of EUR 7500 or if the cash is carried by a natural person or is unaccompanied. In view of the nature of such temporary seizure and retention and the impact that it may have on the freedom of movement and the right to property, the period of retention should be limited to the absolute minimum time that other competent authorities require to determine whether there are grounds for further intervention, such as investigations or seizure of the cash based on other legal instruments. A decision to retain cash temporarily under this Regulation should be accompanied by a statement of reasons and adequately describe the specific factors that have given rise to the action. If at the end of the time limit no decision concerning the further intervention is taken or if the competent authority decides that there are no grounds to further retain the cash, it should immediately be made available to the declarant.

Amendment 120 #

Proposal for a regulation
Recital 23

(23) Considering that the movements of cash that are subject to controls under this Regulation take place across the external border, and given the difficulty of acting once the cash has left the point of entry or exit and the associated risk if even small amounts are used illicitly, the competent authorities should be able to seize and retain cash temporarily in certain circumstances, subject to checks and balances: first, where the obligation to declare or to disclose has not been met and, secondly, where there are indications of criminal activity, irrespective of the amount or whether the cash is carried by a natural person or is unaccompanied. In view of the nature of such temporary seizure and retention and the impact that it may have on the freedom of movement and the right to property, the period of retention should be limited to the absolute minimum time that other competent authorities require to determine whether there are grounds for further intervention, such as investigations or seizure of the cash based on other legal instruments. Also, natural persons impacted by the temporary seizure and retention of their cash should be offered the possibility to keep a minimum amount of cash, where possible given the type of cash seized and retained, in order to be able to afford food, water and shelter. A decision to retain cash temporarily under this Regulation should be accompanied by a statement of reasons and adequately describe the specific factors that have given rise to the action. If at the end of the time limit no decision concerning the further intervention is taken or if the competent authority decides that there are no grounds to further retain the cash, it should immediately be made available to the declarant.

Amendment 121 #

Proposal for a regulation
Recital 24

(24) It is essential that competent authorities that collect information pursuant to this Regulation transmit it in a timely manner to the national Financial Intelligence Unit, in order to enable it to further analyse and compare them with other data as foreseen in Directive 2015/849 [. In addition, the creation of a European Financial Intelligence Unit would help to ensure efficient exchange of information and to improve coordination and cooperation between competent authorities across the Union.

Amendment 122 #

Proposal for a regulation
Recital 24

(24) It is essential that competent authorities that collect information pursuant to this Regulation transmit it in a timely manner to the national Financial Intelligence Unit, which should swiftly make the information available to the Financial Intelligence Units of the other Member States, in order to enable ithe FIUs to further analyse and compare them information with other data as foreseen in Directive 2015/849 [.

Amendment 123 #

Proposal for a regulation
Recital 25

(25) Where they register a failure to declare or disclose or have indications of criminal activity, competent authorities should be able to share the information through appropriate channels with authorities competent for the fight against the criminal activity in question. Such exchange of data is proportionate considering that offenders against the obligation to declare who have been apprehended in one Member State would be likely to select another Member State of entry or exit where the competent authorities would have no knowledge of their earlier infractions. The exchange of such information should be made mandatory, in order to ensure consistent application across Member States. Where there are indications that the cash is related to criminal activity which could adversely affect the financial interests of the Union that information should also be made available to the Commission and the European Public Prosecutor's Office. In order to achieve better the preventive and dissuasive objectives of this Regulation with regards to the circumvention of the obligation to declare, anonymised risk information and risk analysis results should also mandatorily be exchanged between Member States and with the Commission.

Amendment 124 #

Proposal for a regulation
Recital 25

(25) Where they register a failure to declare or disclose or have severe indications of criminal activity, competent authorities should be able to share the information through appropriate channels with authorities competent for the fight against the criminal activity in question. Such exchange of data is proportionate considering that offenders against the obligation to declare who have been apprehended in one Member State would be likely to select another Member State of entry or exit where the competent authorities would have no knowledge of their earlier infractions. The exchange of such information should be made mandatory, in order to ensure consistent application across Member States. Where there are indications that the cash is related to criminal activity which could adversely affect the financial interests of the Union that information should also be made available to the Commission. In order to achieve better the preventive and dissuasive objectives of this Regulation with regards to the circumvention of the obligation to declare, anonymised risk information and risk analysis results should also mandatorily be exchanged between Member States and with the Commission.

Amendment 125 #

Proposal for a regulation
Recital 28

(28) For the purposes of the analysis carried out by the Financial Intelligence Units and in order to enable authorities in other Member States to control and enforce the obligation to declare, particularly with respect to declarants who have previously committed infractions against that obligation it is necessary that the declaration data is stored for a sufficiently long period so as to enable the competent authorities to effectively conduct investigations. Processing of personal data under this Regulation serves the same purposes as that under Directive (EU) 2015/849. Under this Directive, the Financial Intelligence Units retain data provided to them by "obliged entities" for five years. In order to control and enforce the obligation to declare effectively, the period of retention of declaration data should be aligned with that provided for under Directive (EU) 2015/849In line with the case-law of the Court of Justice of the European Union, such as Opinion 1/15 of 26 July 2017 on the EU-Canada PNR, a distinction should be made between personal data of suspicious persons and personal data of non-suspicious persons. When there is no suspicion that the cash may be linked to criminal activity after a risk analysis, personal data should not be kept for more than one year. When there is such a suspicion, personal data should be retained for up to three years to allow proper criminal investigations.

Amendment 126 #

Proposal for a regulation
Recital 29

(29) In order to encourage compliance and deter circumvention, Member States should introduce penalties for non- compliance with the obligations to declare or disclose. The penalties should apply only to the failure to declare or disclose under this Regulation and should not take into account the criminal activity potentially associated with the cash, which may be the object of further investigation and measures falling outside the scope of this Regulation. They should be effective, proportionate and dissuasive, and not go beyond what is required to encourage compliance. They should be decided by Member States in accordance with national law.

Amendment 127 #

Proposal for a regulation
Recital 29

(29) In order to encourage compliance and deter circumvention, Member States should introduce penalties for non- compliance with the obligations to declare or disclose. The penalties should apply only to the failure to declare or disclose under this Regulation and should not take into account the criminal activity potentially associated with the cash, which may be the object of further investigation and measures falling outside the scope of this Regulation. They should be effective, proportionate and dissuasive, and not go beyond what is required to encourage compliance, and be established in accordance with the calculation method and, where appropriate, the maximum and minimum amounts set by the Commission, in order to avoid excessive disparities in the application of penalties for non-compliance across the Member States.

Amendment 128 #

Proposal for a regulation
Recital 29

(29) In order to encourage compliance and deter circumvention, Member States should introduce penalties for non- compliance with the obligations to declare or disclose. The penalties should apply only to the failure to declare or disclose under this Regulation and should not take into account the criminal activity potentially associated with the cash, which may be the object of further investigation and measures falling outside the scope of this Regulation. They should be effective, proportionate and dissuasive, and not go beyond what is required to encourage compliance. Member States should agree on a uniform set of penalties to prevent the flow of illicit cash using the points of entry with the lowest penalties for noncompliance.

Amendment 129 #

Proposal for a regulation
Recital 30

(30) In order to ensure uniform application of controls and the efficient processing, transmission and analysis of the declarations by competent authorities, implementing powers should be conferred on the Commission to adopt the template of declaration and disclosure forms, to determine the criteria of a common risk management framework, to establish the technical rules and modalities and the template of the forms to be used for the declarations, the information exchange and to establish the rules and the format to be used for the provision of statistical information to the Commission. This should include the establishment of appropriate electronic systems. The powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council23 . __________________ 23 Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by the Member States of the Commission’s exercise of implementing powers (OJ L 55, 28.2.2011, p. 13).deleted

Amendment 130 #

Proposal for a regulation
Recital 30

(30) IWhile most Member States use already a harmonized declaration form, the EU currency Declaration From (EU- CDF), on a voluntary basis, in order to ensure uniform application of controls and the efficient processing, transmission and analysis of the declarations by competent authorities, implementing powers should be conferred on the Commission to adopt the template of declaration and disclosure forms, ~~to determine the criteria of a common risk management framework,~~ to establish the technical rules and modalities and the template of the forms to be used for the declarations, for the information exchange ~~and~~between competent authorities and for the interconnection between the information exchange systems used by, respectively, competent authorities and Financial Investigations Units, as well as to establish the rules and the format to be used for the provision of statistical information to the Commission. This should include the establishment of appropriate electronic systems. The powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council23 . __________________ 23 Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by the Member States of the Commission’s exercise of implementing powers (OJ L 55, 28.2.2011, p. 13).

Amendment 131 #

Proposal for a regulation
Recital 30

(30) In order to ensure uniform application of controls and the efficient processing, transmission and analysis of the declarations by competent authorities, implementing powers should be conferred on the Commission to adopt the template of declaration and disclosure forms, to determine the criteria of a common risk management framework, to establish the technical rules and modalities and the template of the forms to be used for the declarations, the information exchange and to establish the rules and the format to be used for the provision of statistical information to the Commission. This should ~~include the establishment of~~be done through appropriate electronic systems. The powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council23 . __________________ 23 Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by the Member States of the Commission’s exercise of implementing powers (OJ L 55, 28.2.2011, p. 13).

Amendment 132 #

Proposal for a regulation
Recital 30 a (new)

(30a) In order to ensure their uniform application by competent authorities, controls should be based primarily on a risk analysis, with the purpose of identifying and evaluating the risks and developing the necessary countermeasures, and should be performed within a common risk management framework, as defined in Regulation (EU) No952/2013 of the European Parliament and of the Council, which should take into account the risk assessment analysis carried out under Directive (EU) 2015/849. The Commission should be empowered to adopt, by means of delegated acts, the definition of the criteria of this common risk management framework.

Amendment 133 #

Proposal for a regulation
Recital 31

(31) In order to be able to quickly take account of future modifications of international standards such as established by the Financial Action Task Force or to address circumvention of this Regulation through reliance on liquid stores of value which are not covered by the definition of 'cash', the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of modifications to that definition. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016.24 In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts. __________________ 24deleted Ref. to OJ [L 123/1]

Amendment 134 #

Proposal for a regulation
Recital 31

(31) In order to be able to quickly take account of future modifications of international standards such as established by the Financial Action Task Force or to address circumvention of this Regulation through reliance on liquid stores of value which are not covered by the definition of 'cash', the power to adopt implementing acts in accordance with Article 2901 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of modifications to that definition. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016.24 In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts. __________________ 24 Ref. to OJ [L 123/1]Annex I to this Regulation.

Amendment 135 #

Proposal for a regulation
Recital 31 a (new)

(31a) In order to remedy the current situation whereby many travellers are not aware of their obligation to declare cash, the Commission, in cooperation with Member States, should launch regular information campaigns directed towards EU citizens and third country nationals as well as legal persons. The Commission should also make available information related to competent authorities and penalties in place at the level of Member States on its website.

Amendment 136 #

Proposal for a regulation
Recital 32

(32) Since the objectives of this Regulation cannot be sufficiently achieved by the Member States, but, because of the transnational scale of money laundering and terrorism financing, and the specificities of the internal market and its fundamental freedoms, which can only be fully implemented by ensuring that no excessively disparate treatment based on national legislation is imposed on cash crossing the external border of the Union, can be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality as set out in that Article, this Regulation does not go beyond what is necessary to achieve those objectives.deleted

Amendment 137 #

Proposal for a regulation
Article 1 – paragraph 1

This Regulation provides for a system of controls with respect to cash entering or leaving the Union, to complement the legal framework for the prevention of money laundering and terrorist financing laid down in Directive (EU) 2015/849, and for the prevention of any other criminal activity contrary to the security of the Union or of its Member States.

Amendment 138 #

Proposal for a regulation
Article 2 – paragraph 1 – point a – indent 2

~~- bearer-negotiable instruments referred to in Annex I;~~deleted

Amendment 139 #

Proposal for a regulation
Article 2 – paragraph 1 – point a – indent 3

~~- commodities used as highly liquid stores of value referred to in Annex I;~~deleted

Amendment 140 #

Proposal for a regulation
Article 2 – paragraph 1 – point a – indent 3

- commodities used as highly liquid stores of value referred to in Annex I, particularly gold;

Amendment 141 #

Anne SANDER

Proposal for a regulation
Article 2 – paragraph 1 – point a – indent 3

- commodities used as highly liquid stores of value referred to in Annex I, particularly gold;

Amendment 142 #

Proposal for a regulation
Article 2 – paragraph 1 – point a – indent 4

~~- prepaid cards referred to in Annex I;~~deleted

Amendment 143 #

Proposal for a regulation
Article 2 – paragraph 1 – point a – indent 4

~~- prepaid cards referred to in Annex I;~~deleted

Amendment 144 #

Proposal for a regulation
Article 2 – paragraph 1 – point a – indent 4

~~- prepaid cards referred to in Annex I;~~deleted

Amendment 145 #

Proposal for a regulation
Article 2 – paragraph 1 – point a – indent 4

- anonymous prepaid cards referred to in Annex I;

Amendment 146 #

Proposal for a regulation
Article 2 – paragraph 1 – point a – indent 4

- certain types of prepaid cards referred to in Annex I;

Amendment 147 #

Proposal for a regulation
Article 2 – paragraph 1 – point c

(c) 'currency' means banknotes and coins that are in circulation as a medium of exchange or that have been in circulation as a medium of exchange and can still be exchanged through financial institutions or central banks for banknotes ~~and coins that are in circulation as a medium of exchange~~;

Amendment 148 #

Proposal for a regulation
Article 2 – paragraph 1 – point d

(d) 'bearer-negotiable instrument' means an instrument other than currency which entitles its holder to claim a financial amount upon presentation of the instrument without having to prove his/her identity or entitlement to that amount;deleted

Amendment 149 #

Proposal for a regulation
Article 2 – paragraph 1 – point d

(d) 'bearer-negotiable instrument' means an instrument other than currency which entitles its holder to claim a financial amount upon presentation of the instrument ~~without having to prove his/her identity or entitlement to that amount~~;

Amendment 150 #

Proposal for a regulation
Article 2 – paragraph 1 – point e

(e) 'commodities used as highly liquid stores of value' means goods that present a high ratio between their value and their volume and that can easily be converted into currency through accessible trading markets whilst incurring only modest transaction costs;deleted

Amendment 151 #

Proposal for a regulation
Article 2 – paragraph 1 – point f

(f) 'prepaid card' means a non- nominal card storing monetary value or funds which can be used for payment transactions, for acquiring goods or services or for redemption of currency and which is not linked to a bank account;deleted

Amendment 152 #

Proposal for a regulation
Article 2 – paragraph 1 – point f

Amendment 153 #

Proposal for a regulation
Article 2 – paragraph 1 – point f

Amendment 154 #

Proposal for a regulation
Article 2 – paragraph 1 – point f

(f) 'prepaid card' means a non-nominal card storing or providing access to monetary value or funds which can be used for payment transactions, for acquiring goods or services or for redemption of currency and which is not linked to a bank account;

Amendment 155 #

Proposal for a regulation
Article 2 – paragraph 2

~~2. The Commission shall be empowered to adopt~~ delegated acts in accordance with Article 14 in order to amend Annex I to take account of new trends in money laundering or terrorist financing, as defined in paragraphs 3, 4 and 5 of Article 1 of Directive (EU) 2015/849, or best practices in preventing money laundering or terrorist financing or to prevent the use by criminals of bearer-negotiable instruments, commodities used as highly liquid stores of value or prepaid cards to circumvent the obligations laid down in Articles 3 and 4.

Amendment 156 #

Proposal for a regulation
Article 2 – paragraph 2

2. The Commission shall be empowered to adopt ~~delegated~~implementing acts in accordance with Article 14 in order to amend Annex I to take account of new trends in money laundering or terrorist financing, as defined in paragraphs 3, 4 and 5 of Article 1 of Directive (EU) 2015/849, or best practices in preventing money laundering or terrorist financing or to prevent the use by criminals of bearer- negotiable instruments, commodities used as highly liquid stores of value or prepaid cards to circumvent the obligations laid down in Articles 3 and 4.

Amendment 157 #

Proposal for a regulation
Article 2 – paragraph 2

Amendment 158 #

Proposal for a regulation
Article 2 – paragraph 2

Amendment 159 #

Proposal for a regulation
Article 2 – paragraph 2

2. The Commission shall be empowered to adopt delegated acts in accordance with Article 14 in order to amend Annex I to take account of new trends in money laundering or terrorist financing, as defined in paragraphs 3, 4 and 5 of Article 1 of Directive (EU) 2015/849, or best practices in preventing money laundering or, terrorist financing, organised crime and any other criminal activity contrary to the security of the Union or of its Member States, or to prevent the use by criminals of bearer- negotiable instruments, commodities used as highly liquid stores of value or prepaid cards to circumvent the obligations laid down in Articles 3 and 4, and to establish the method for the calculation of the penalties for non- compliance referred to in Article 13 and, where appropriate, their maximum and minimum levels.

Amendment 160 #

Proposal for a regulation
Article 3 – title

Obligation to declare accompanied cash

Amendment 161 #

Proposal for a regulation
Article 3 – paragraph 2 – point a

(a) the declarant, including full name, contact details (including address), date and place of birth, ~~and~~ nationality and ID number;

Amendment 162 #

Proposal for a regulation
Article 3 – paragraph 2 – point b

(b) the owner of the cash, including full name, contact details (including address), date and place of birth, ~~and~~ nationality and ID number in case of natural persons or registration number or VAT number in case of legal persons;

Amendment 163 #

Proposal for a regulation
Article 3 – paragraph 2 – point c

(c) the intended recipient of the cash, including full name, contact details (including address), date and place of birth, ~~and~~ nationality and ID number in case of natural persons or registration number or VAT number in case of legal persons;

Amendment 164 #

Proposal for a regulation
Article 3 – paragraph 2 – point d

(d) the amount ~~and~~or value as well as nature of the cash;

Amendment 165 #

Proposal for a regulation
Article 3 – paragraph 3

3. The information shall be provided in writing or electronically using the form laid down pursuant to Article 15(a). An endorsed copy shall be delivered to the declarant ~~upon request~~.

Amendment 166 #

Proposal for a regulation
Article 4 – title

Disclosure obligation for unaccompanied cash

Amendment 167 #

Proposal for a regulation
Article 4 – paragraph 1

1. Where unaccompanied cash of a value of EUR 10 000 or more is entering or leaving the Union, the ~~competent authorities of the Member State through which the cash is entering or leaving may, following a risk analysis, require the sender or~~sender or his representative shall declare the amount to the competent authorities of the Member State of departure, in the case of a consignment leaving the Union, or of destination in the case of a consignment entering the Union, and shall attach a copy of his declaration to his consignment. If, at the time of a control resulting in the discovery of an undeclared sum, the competent authorities of the Member State of destination or of the Member State of departure are unable to contact the sender, they may require the recipient orf their sum or his representative to make a disclosure declaration~~. The o~~ within a time limit which they shall set and which shall not exceed 30 days. The cash shall remain at the disposal of the competent authorities for purposes of checking until the recipient or his representative has signed this declaration or, if no declaration is made, until the expiry of the time limit. Obligations to declare shall not be deemed to be fulfilled if the information provided is incorrect or incomplete ~~or the cash is not made available for control.~~ .

Amendment 168 #

Proposal for a regulation
Article 4 – paragraph 1

1. Where unaccompanied cash of a value of EUR 10 000 or more is entering or leaving the Union, the sender or its representative shall declare that cash to the competent authorities of the Member States through which the cash is entering or leaving ~~may, following a risk analysis, require the sender or~~, and join its declaration to the shipment. Where the competent authorities carrying out the controls laid down in article 5 detect that the obligation to declare the cash was not fulfilled and are not able to contact the sender, they may require the recipient or ~~their~~its representative to make a disclosure declaration, within a set deadline which may not be longer than 30 days. The competent authorities retain cash until the recipient or its representative make the disclosure or, if no disclosure is made, until the deadline expires. The obligation to declare shall not be deemed to be fulfilled if the information provided is incorrect or incomplete or the cash is not made available for control.

Amendment 169 #

Proposal for a regulation
Article 4 – paragraph 1

1. Where unaccompanied cash of a value of EUR 102 000 or more is entering or leaving the Union, the competent authorities of the Member State through which the cash is entering or leaving may, following a risk analysis, require the sender or the recipient or their representative to make a disclosure declaration. The obligation to declare shall not be deemed to be fulfilled if the information provided is incorrect or incomplete or the cash is not made available for control.

Amendment 170 #

Proposal for a regulation
Article 4 – paragraph 2 – introductory part

~~2. The disclosure declaration referred to in paragraph 1 shall provide the details of:~~(Does not affect the English version.)

Amendment 171 #

Proposal for a regulation
Article 4 – paragraph 2 – point a

(a) the declarant, including full name, contact details (including address), date and place of birth, ~~and~~ nationality and ID number;

Amendment 172 #

Proposal for a regulation
Article 4 – paragraph 2 – point b

(b) the owner of the cash, including the full name, contact details (including address), date and place of birth ~~and nationality~~, nationality and ID number in case of natural persons or registration number or VAT number in case of legal persons;

Amendment 173 #

Proposal for a regulation
Article 4 – paragraph 2 – point c

(c) the sender of the cash, including the full name, contact details (including address), date and place of birth ~~and nationality~~, nationality and ID number in case of natural persons or registration number or VAT number in case of legal persons;

Amendment 174 #

Proposal for a regulation
Article 4 – paragraph 2 – point d

(d) the recipient or intended recipient of the cash, including the full name, contact details (including address), date and place of birth ~~and nationality~~, nationality and ID number in case of natural persons or registration number or VAT number in case of legal persons;

Amendment 175 #

Proposal for a regulation
Article 4 – paragraph 2 – point e

(e) the amount ~~and~~or value as well as nature of the cash;

Amendment 176 #

Proposal for a regulation
Article 4 – paragraph 3

3. The information shall be provided in writing or electronically using the form laid down pursuant to Article 15(a). An endorsed copy shall be delivered to the declarant ~~upon request~~.

Amendment 177 #

Proposal for a regulation
Article 4 – paragraph 3 a (new)

3a. The obligation referred to in paragraph 1 shall not apply to the institutions referred to in Article 3(1) and (2) of Directive (EU) 2015/849.

Amendment 178 #

Proposal for a regulation
Article 4 – paragraph 3 a (new)

3a. The obligation laid down in paragraph 1 shall not apply to credit and financial institutions as defined in article 3 paragraph 2 and 3 of the Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015 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.

Amendment 179 #

Proposal for a regulation
Article 5 – paragraph 3

3. If the obligation under Article 3 or ~~the disclosure obligation under~~ Article 4 has not been fulfilled, the competent authorities shall establish in writing or in an electronic form an ex officio declaration which shall contain to the extent possible the details listed in Article 3(2) or Article 4(2), as the case may be.

Amendment 180 #

Proposal for a regulation
Article 5 – paragraph 4

Amendment 181 #

Petr JEŽEK, Nils TORVALDS

Proposal for a regulation
Article 5 – paragraph 4

4. The controls shall be based primarily on risk analysis, with the purpose of identifying and evaluating the risks and developing the necessary counter- measures, and shall be performed within a common risk management framework ~~in accordance with the criteria laid down pursuant to Article 15(b)~~, as defined in Article 46 of Regulation 952/2013. This framework shall take into account the risk assessment analysis carried out under articles 6 and7 of Directive (EU) 2015/849.

Amendment 182 #

Proposal for a regulation
Article 5 – paragraph 4

4. The controls, other than random checks, shall be based primarily on risk analysis, with the purpose of identifying and evaluating the risks and developing the necessary counter- measures, and shall be performed within a common risk management framework ~~in accordance with the criteria laid down pursuant to Article 15(b)~~as defined in Regulation 952/2013. This framework shall take into account the risk assessment analysis carried out under article 6 and 7 of Directive 2015/849.

Amendment 183 #

Petr JEŽEK, Nils TORVALDS

Proposal for a regulation
Article 5 – paragraph 4

4. The controls shall be based primarily on risk analysis, with the purpose of identifying and evaluating the risks and developing the necessary counter- measures, and shall be performed within a common risk management framework in accordance with the criteria laid down in a delegated act pursuant to Article 1~~5(b).~~ 4. This shall not prevent competent authorities to proceed with spontaneous controls or controls based on specific information obtained by another authority. Competent authorities shall be equipped with adequate control tools, such as possible card readers in the case of pre-paid cards to ascertain the sums being effectively carried.

Amendment 184 #

Proposal for a regulation
Article 5 – paragraph 4 a (new)

4a. The powers conferred on the competent authorities in this article shall also extend to article 6.

Amendment 185 #

Proposal for a regulation
Article 5 – paragraph 4 a (new)

4a. The powers conferred on the competent authorities by this Article shall also extend to Article 6.

Amendment 186 #

Proposal for a regulation
Article 6 – paragraph 1

1. Where the competent authorities detect that a natural person is entering or leaving the Union with an amount of cash below the threshold referred to in Article 3 and that, following a risk analysis, there are severe indications that the cash is related to criminal activity, they shall record that information, the full name, address, date and place of birth, and nationality of that person, and the information on the means of transport used.

Amendment 187 #

Proposal for a regulation
Article 6 – paragraph 2

2. Where the competent authorities detect that a shipment of unaccompanied cash of an amount below the threshold referred to in Article 4 is entering or leaving the Union and that, following a risk analysis, there are severe indications that the cash is related to criminal activity, they shall record that information, the full name, address, date and place of birth, and nationality of the sender, the intended recipient or their representative, and the information on the means of shipment used.

Amendment 188 #

Petr JEŽEK, Nils TORVALDS

Proposal for a regulation
Article 7 – paragraph 1 – introductory part

1. The competent authorities may ~~seize and~~ temporarily retain cash by an administrative decision in accordance with the conditions laid down in national legislation where:

Amendment 189 #

Anne SANDER

Proposal for a regulation
Article 7 – paragraph 1 – introductory part

1. The competent authorities may ~~seize and~~ temporarily retain cash by an administrative decision in accordance with the conditions laid down in national legislation where:

Amendment 190 #

Proposal for a regulation
Article 7 – paragraph 1 – introductory part

1. The competent authorities may ~~seize and~~ temporarily retain cash by an administrative decision in accordance with the conditions laid down in national legislation where:

Amendment 191 #

Proposal for a regulation
Article 7 – paragraph 1 – point b

(b) there are severe indications that the cash is related to criminal activity, irrespective of whether it is carried by a natural person or is unaccompanied cash.

Amendment 192 #

Proposal for a regulation
Article 7 – paragraph 1 a (new)

1a. When implementing paragraph 1, the competent authorities shall, where possible, allow natural persons to keep a minimum amount of cash with them for purposes such as covering subsistence expenses. Such minimum amount of cash shall be defined according to national law, taking into account the minimum income in the Member State where the cash is retained.

Amendment 193 #

Proposal for a regulation
Article 7 – paragraph 2

2. The administrative decision referred to in paragraph 1 ~~shall be~~, accompanied by a statement of reasons, shall be communicated to the person affected at the time it is issued~~, and shall be subject to effective remedy in accordance with procedures provided for in national law~~.

Amendment 194 #

Nils TORVALDS

Proposal for a regulation
Article 7 – paragraph 3

3. The period of temporary retention shall be strictly limited to the time required for competent authorities to determine whether the circumstances of the case warrant further retention. The maximum period of temporary retention shall be laid down by national law; it may not be longer than 3020 working days. If no determination is made regarding further retention of the cash within that period or if a determination is made that the circumstances of the case do not warrant further retention, the cash shall immediately be made available to the declarant.

Amendment 195 #

Proposal for a regulation
Article 7 – paragraph 3

3. The period of temporary retention shall be strictly limited to the time required for competent authorities to determine whether the circumstances of the case warrant further retention. The maximum period of temporary retention shall be laid down by national law; it ~~may~~shall not be longer than 30 days. If no determination is made regarding further retention of the cash within that period or if a determination is made that the circumstances of the case do not warrant further retention, the cash shall immediately be made available to the declarant or the person affected.

Amendment 196 #

Proposal for a regulation
Article 7 – paragraph 3

3. The period of temporary retention shall be strictly limited to the time required for competent authorities to determine whether the circumstances of the case warrant further retention. The maximum period of temporary retention shall be laid down by national law; it may not be longer than 390 days. If no determination is made regarding further retention of the cash within that period or if a determination is made that the circumstances of the case do not warrant further retention, the cash shall immediately be made available to the declarant.

Amendment 197 #

Proposal for a regulation
Article 8 – paragraph 1

1. The competent authorities shall record the information obtained under Articles 3, 4, 5(3) or 6 and transmit it to the Financial Intelligence Unit of the Member State in which it was obtained, in accordance with ~~the technical rules laid down pursuant to Article 15(c)~~paragraph 1a.

Amendment 198 #

Proposal for a regulation
Article 8 – paragraph 1

1. The competent authorities shall record the information obtained under Articles 3, 4, 5(3) or 6 and transmit it to the Financial Intelligence Unit of the Member State in which it was obtained, which shall swiftly transmit the information to the Financial Intelligence Units of the other Member States, in accordance with the technical rules laid down pursuant to Article 15(c).

Amendment 199 #

Proposal for a regulation
Article 8 – paragraph 1 a (new)

1a. For the purposes of paragraph 1, an interconnection between the system competent authorities use to exchange information pursuant to Council Regulation (EC) No515/97[1]and the system Financial Intelligence Units use to exchange information pursuant to Council Decision 2000/642/JHA[2]shall be put in place in accordance with the technical rules laid down by the Commission pursuant to Article 15(c).[1] Council Regulation (EC) No 515/97of 13 March 1997 on mutual assistance between the administrative authorities of the Member States and cooperation between the latter and the Commission to ensure the correct application of the law on customs and agricultural matters, OJ L 82 of 22.3.1997, p. 1, lastly amended by Regulation (EU) No 2015/1525 of the European Parliament and of the Council of 9 September 2015, OJ L 243 of18.9.2015, p. 1.[2] Council Decision 2000/642/JHA of17 October 2000 concerning arrangements for cooperation between financial intelligence units of the Member States in respect of exchanging information. OJ L 271 of24.10.2000, p. 4.

Amendment 200 #

Proposal for a regulation
Article 8 – paragraph 2

2. The information referred to in paragraph 1 shall be communicated as soon as possible, ~~and no later than one month~~by electronic means and no later than three working days after the date on which it was collected.

Amendment 201 #

Proposal for a regulation
Article 8 – paragraph 2

2. The information referred to in paragraph 1 shall be communicated as soon as possible, and no later than ~~one month~~five working days after the date on which it was collected.

Amendment 202 #

Proposal for a regulation
Article 8 – paragraph 2 a (new)

2a. The Commission shall assess, and if found appropriate, present a legislative proposal for the creation of a Union Financial Intelligence Unit by 1 January 2019.

Amendment 203 #

Proposal for a regulation
Article 9 – paragraph 1 – introductory part

1. The competent authority of each Member State shall, by electronic means, communicate the following information to the competent authorities of all the other Member States and to the Commission:

Amendment 204 #