Next event: Commission response to text adopted in plenary 2018/11/13 more...
- Final act published in Official Journal 2018/11/12
- Draft final act 2018/10/24
- Final act signed 2018/10/23
- End of procedure in Parliament 2018/10/23
- Act adopted by Council after Parliament's 1st reading 2018/10/11
- Council Meeting 2018/10/11
- Results of vote in Parliament 2018/09/12
- Decision by Parliament, 1st reading 2018/09/12
- Debate in Parliament 2018/09/11
- Coreper letter confirming interinstitutional agreement 2018/06/07
- Committee decision to enter into interinstitutional negotiations confirmed by plenary (Rule 71) 2018/01/17
- Committee decision to enter into interinstitutional negotiations announced in plenary (Rule 71) 2018/01/15
- Committee report tabled for plenary, 1st reading 2017/12/20
- Vote in committee, 1st reading 2017/12/11
- Committee decision to open interinstitutional negotiations with report adopted in committee 2017/12/11
- Committee opinion 2017/11/07
- Committee opinion 2017/10/13
- Amendments tabled in committee 2017/10/12
- Committee opinion 2017/09/15
- Committee draft report 2017/09/11
- Council Meeting 2017/06/08
- CORRAO Ignazio (EFDD) appointed as rapporteur in DEVE 2017/06/08
- Contribution 2017/05/03
- JOLY Eva (Verts/ALE) appointed as rapporteur in ECON 2017/04/11
- Contribution 2017/04/09
- Contribution 2017/04/03
- Debate in Council 2017/03/28
- Council Meeting 2017/03/28
Progress: Procedure completed
Role | Committee | Rapporteur | Shadows |
---|---|---|---|
Lead | LIBE | CORRAO Ignazio ( EFDD) | HOHLMEIER Monika ( PPE), GOMES Ana ( S&D), MACOVEI Monica ( ECR), JEŽEK Petr ( ALDE), SARGENTINI Judith ( Verts/ALE), FONTANA Lorenzo ( ENF) |
Committee Opinion | DEVE | CORRAO Ignazio ( EFDD) | Nirj DEVA ( ECR), Judith SARGENTINI ( Verts/ALE), Lola SÁNCHEZ CALDENTEY ( GUE/NGL), Bogdan Brunon WENTA ( PPE) |
Committee Opinion | AFET | ||
Committee Opinion | ECON | JOLY Eva ( Verts/ALE) | Hugues BAYET ( S&D), Thomas MANN ( PPE), Marco VALLI ( EFDD) |
Committee Opinion | JURI | Virginie ROZIÈRE ( S&D) |
Lead committee dossier:
Legal Basis:
TFEU 083-p2
Legal Basis:
TFEU 083-p2Subjects
Events
PURPOSE: to subject money laundering to effective, proportionate and dissuasive criminal penalties in all Member States.
LEGISLATIVE ACT: Directive (EU) 2018/1673 of the European Parliament and of the Council on combating money laundering by criminal law.
CONTENT: the Directive establishes minimum rules on the definition of criminal offences and penalties in the field of money laundering. It complements and reinforces Directive (EU) 2015/849 of the European Parliament and of the Council on the prevention of the use of the financial system for the purpose of money laundering or terrorist financing.
The main elements of the Directive are as follows:
European definitions of crimes related to money laundering
Member States shall have to ensure that all offences punishable by imprisonment under the Directive are considered predicate offences for money laundering. Tax crimes relating to direct and indirect taxes are included in the definition of criminal activity, in accordance with the revised recommendations of the Financial Action Task Force (FATF).
Money laundering offences
The Directive criminalises any act of money laundering if committed intentionally and with the knowledge that the property was derived from criminal activity. Being an accomplice, inciting and attempting to commit a money laundering offence shall also constitute a criminal offence punishable by penalties.
As the Directive provides for minimum rules on the definition of criminal offences and penalties in the field of money laundering, Member States shall be free to adopt or maintain stricter criminal rules in this field.
Sanctions against natural persons
Money laundering activities shall be punishable by a maximum term of imprisonment of at least 4 years, and judges may impose additional measures and sanctions such as fines, exclusion from access to finance, temporary prohibition from engaging in commercial activity or running for elected office or from holding public office.
Aggravating circumstances shall be recognised in cases involving criminal organisations or for offences committed in the exercise of certain professional activities.
Legal perons
The Directive also provides for the possibility of holding legal persons liable for certain money laundering activities and applying a series of sanctions to them, such as exclusion from public aid, placing them under judicial supervision, a judicial winding-up measure or the temporary or permanent closure of the establishment used to commit the offence.
Judicial and police cooperation
The Directive removes obstacles to cross-border judicial and police cooperation by introducing common provisions to improve the conduct of investigations.
In cross-border cases, the new rules establish more precisely which Member State exercises jurisdiction and define cooperation between the Member States concerned, as well as how to involve Eurojust. Where an offence falls within the jurisdiction of more than one Member State, the Member States concerned shall cooperate to decide which of them will prosecute the offender with the aim of centralising prosecution in a single Member State.
ENTRY INTO FORCE: 2.12.2018.
TRANSPOSITION: no later than 3.12.2020.
The European Parliament adopted by 634 votes to 46, with 24 abstentions, a legislative resolution on the proposal for a directive of the European Parliament and of the Council on countering money laundering by criminal law.
The proposed Directive establishes minimum rules concerning the definition of criminal offences and sanctions in the area of money laundering.
The European Parliament’s position adopted at first reading under the ordinary legislative procedure amended the Commission proposal as follows:
European definitions of crimes related to money laundering : Member States shall consider any offence set out in those legal acts as constituting a predicate offence for money laundering.
The definition of 'criminal activity' within the meaning of the Directive means any kind of criminal involvement in the commission of any offence punishable, in accordance with national law, by deprivation of liberty or a detention order for a maximum of more than one year or, as regards Member States that have a minimum threshold for offences in their legal systems, any offence punishable by deprivation of liberty or a detention order for a minimum of more than six months.
The definition of ‘criminal activity’ shall include any type of criminal participation in committing the offences provided for in Directive 2017/541 on combating terrorism as well as criminal tax crimes related to direct and indirect taxes, as defined by national law.
Money laundering offences : under the Directive, any act of money laundering shall be criminalised if committed intentionally and with the knowledge that the property was derived from criminal activity . Being an accomplice, inciting and attempting to commit a money laundering offence shall also constitute a criminal offence punishable by penalties.
Sanctions : in order to deter money laundering throughout the Union, Member States shall ensure that it is punishable by a maximum term of imprisonment of at least four years .
Member States shall also provide for additional sanctions or measures, such as (i) fines, (ii) temporary or permanent exclusion from access to public funding, including tendering procedures, grants and concessions, (iii) temporary prohibition from engaging in commercial activity or (iv) temporary bans on running for elected office or public office.
Legal persons shall be held liable for any offence referred to in the Directive when committed for their benefit.
Confiscation : Member States shall take the necessary measures to ensure, as appropriate, that their competent authorities freeze or confiscate in accordance with Directive 2014/42/EU , the proceeds derived from and instrumentalities used or intended to be used in the commission or contribution to the commission of the offences.
Jurisdiction : where an offence falls within the jurisdiction of more than one Member State and where any of the Member States concerned can validly prosecute on the basis of the same facts, the Member States concerned shall cooperate in order to decide which of them will prosecute the offender, with the aim of centralising proceedings in a single Member State.
Investigative tools : sufficient staff and targeted training, as well as resources and up-to-date technological capacity, should be made available to the investigative services.
The Committee on Civil Liberties, Justice and Home Affairs adopted the report by Ignazio CORRAO (EFDD, IT) on the proposal for a directive of the European Parliament and of the Council on countering money laundering by criminal law.
The committee recommended that the European Parliament’s position adopted at first reading under the ordinary legislative procedure should amend the Commission proposal as follows.
Objective and scope : Members stressed the need for a strengthened Union legal framework making it possible to deal more effectively with terrorist funding and to reduce the threat from terrorist organisations by making it harder for them to finance their activities.
The definition of ‘ criminal activity’ within the meaning of the Directive shall include any type of criminal involvement in carry out the offences set out in Directive (EU) 2017/541 on combating terrorism and related criminal tax offences, direct and indirect taxes, as defined by national law.
Members pointed out that Member States shall ensure that certain types of money laundering activity are also punishable when committed by the perpetrator of the criminal activity through which the property was obtained (“self-laundering”).
Sanctions applicable to natural persons : whereas the Commission proposed that money laundering offences should be punishable by a maximum term of imprisonment of at least four years, at least in serious cases, Members considered that the offences shall be punishable by a maximum term of imprisonment of at least five years and a minimum term of imprisonment of at least two years where one of the aggravating factors referred to in the Directive applies.
Incitement, aiding and abetting, and attempt : each Member State shall ensure that inciting, aiding and abetting and attempting an offence 3 shall be punishable by a maximum term of imprisonment of at least three years .
Penalties for natural persons : each Member State shall also ensure that the offences may be punishable, at the judge’s discretion, by complementary, temporary or permanent sanctions including: (a) a ban on entering into contracts with public authorities; (b) a disqualification from the practice of certain commercial activities; and (c) a ban on running for elected offices.
As for legal persons , they could be excluded from the entitlement to public aid or benefits, in particular from European Union programmes or funds, or be banned, temporarily or permanently, from concluding contracts with the public authorities.
Aggravating circumstances : the following shall be qualified as an aggravating circumstance:
the money or property that is being laundered derives from terrorist activities or arms trafficking or the purpose of the laundering is to finance terrorist activities or arms trafficking; the offence was committed in whole or in part on the territory of a non-cooperative jurisdiction listed by the Union; the offender is a politically exposed person; the property or money being laundered is of a value equal to or exceeding EUR 500 000.
Confiscation of property and of the proceeds of criminal activities : each Member State shall provide for the confiscation of all property and proceeds derived from, and instrumentalities used or intended to be used in the commission of, any criminal activity as defined in this Directive. They shall take the necessary measures to ensure cooperation in the freezing and confiscation of property derived from, and instrumentalities used or intended to be used in the commission or contribution to the commission of, any of the offences.
Jurisdiction : where an offence falls within the jurisdiction of more than one Member State and where any of the Member States concerned can validly prosecute on the basis of the same facts, the Member States concerned shall cooperate in order to decide which of them will prosecute the offender, with the aim of centralising proceedings in a single Member State.
Investigative tools : sufficient personnel and adequate targeted training, resources and technological capacity shall be made available to the services responsible for investigating or prosecuting the offences.
Lastly, Member States are called on to take the necessary measures to improve data exchange and cooperation within the Union and to increase cooperation with third countries and international organisations countering money laundering and terrorist financing.
PURPOSE: to tackle money laundering by means of criminal law, allowing for better cross-border cooperation between competent authorities.
PROPOSED ACT: Directive of the European Parliament and of the Council.
ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council.
BACKGROUND: according to United Nations estimates, the total amount of criminal proceeds in 2009 was approximately USD 2.1 trillion, or 3.6 % of global GDP . The size of proceeds from criminal activity in the main illicit markets in the European Union for which evidence is available, has been estimated to amount to EUR 110 billion .
The cross-border dimension of money laundering and the need to address this phenomenon through judicial cooperation among Member States are confirmed by the number of cases registered by Member States and Liaison Prosecutors at Eurojust.
The Commission considers that the current legislative framework is neither comprehensive nor sufficiently coherent to be fully effective. The differences in legal frameworks can be exploited by criminals and terrorists, who can choose to carry out their financial transactions where they perceive anti-money laundering measures to be weakest.
At the operational level, the differences in the definitions, scope and sanctions of money laundering offences affect cross-border police and judicial cooperation between national authorities and the exchange of information.
The European agenda on security adopted in April 2015 called for additional measures in the area of terrorist financing and money laundering.
The Commission presented on 2 February 2016 an action plan to further step up the fight against the financing of terrorism. One of the key actions of the action plan was to consider a possible proposal for a Directive to introduce minimum rules regarding the definition of the criminal offence of money laundering (applying it to terrorist offences and other serious criminal offences) and to approximate sanctions.
The European Parliament resolution of 25 October 2016 on the fight against corruption also pointed out that participation in criminal activities may be linked to terrorist crimes and called for a reinforcement of EU legislation on combating organised crime and money-laundering for the fight against terrorism to be effective.
CONTENT: this proposal for a Directive aims to counter money laundering by means of criminal law. It aims to achieve this objective by implementing international obligations in this area and further aligning it with the International Standards on Combating Money Laundering and the Financing of Terrorism and Proliferation adopted by the Financial Action Task Force (FATF).
The proposed Directive:
establishes minimum rules concerning the definition of criminal offences and sanctions in the area of money laundering offences: the proposal provides definitions of the term "criminal activity" which constitute predicate offences for money laundering, while allowing Member States to maintain different approaches as regards predicate offences for money laundering (choosing between an all-crimes approach, lists of predicate offences, list of offences with a minimum penalty); provides that the three types of money laundering (conversion or transfer, concealment or disguise, and acquisition, possession or use) should be criminalised when committed intentionally; requires Member States to criminalise forms of aiding and abetting, inciting and attempting many of the mentioned offences . Aiding and abetting a money laundering offence may include a large variety of activities that range from facilitating or providing counselling to the provision of supportive services for the commission of these acts; requires Member States to apply effective, proportionate and dissuasive criminal penalties and sets the minimum maximum penalty at four years of imprisonment, at least for serious cases; qualifies aggravating circumstances as when the offence was committed within a criminal organisation or when the perpetrator abused their professional position to enable money laundering, this is considered an aggravating circumstance; requires Member States to ensure the liability of legal persons , while that such liability is alternative to that of natural persons; aims at ensuring that investigative tools which are provided for in national law for organised crime or other serious crime cases can also be used in cases of money laundering.
Documents
- Commission response to text adopted in plenary: SP(2018)724
- Final act published in Official Journal: Directive 2018/1673
- Final act published in Official Journal: OJ L 284 12.11.2018, p. 0022
- Draft final act: 00030/2018/LEX
- Results of vote in Parliament: Results of vote in Parliament
- Decision by Parliament, 1st reading: T8-0339/2018
- Debate in Parliament: Debate in Parliament
- Coreper letter confirming interinstitutional agreement: GEDA/A/(2018)005739
- Committee report tabled for plenary, 1st reading: A8-0405/2017
- Committee opinion: PE613.264
- Committee opinion: PE608.037
- Amendments tabled in committee: PE612.169
- Committee opinion: PE604.691
- Committee draft report: PE609.515
- Contribution: COM(2016)0826
- Contribution: COM(2016)0826
- Contribution: COM(2016)0826
- Debate in Council: 3528
- Legislative proposal published: COM(2016)0826
- Legislative proposal published: EUR-Lex
- Committee draft report: PE609.515
- Committee opinion: PE604.691
- Amendments tabled in committee: PE612.169
- Committee opinion: PE608.037
- Committee opinion: PE613.264
- Coreper letter confirming interinstitutional agreement: GEDA/A/(2018)005739
- Draft final act: 00030/2018/LEX
- Commission response to text adopted in plenary: SP(2018)724
- Contribution: COM(2016)0826
- Contribution: COM(2016)0826
- Contribution: COM(2016)0826
Activities
- Ana GOMES
Plenary Speeches (1)
- Petr JEŽEK
Plenary Speeches (1)
- Paloma LÓPEZ BERMEJO
Plenary Speeches (1)
- Monica MACOVEI
Plenary Speeches (1)
- Morten MESSERSCHMIDT
Plenary Speeches (1)
- Emilian PAVEL
Plenary Speeches (1)
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