| Author (Person) | Chapman, Peter |
|---|---|
| Series Title | European Voice |
| Series Details | Vol.10, No.20, 3.6.04 |
| Publication Date | 03/06/2004 |
| Content Type | News |
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By Peter Chapman Date: 03/06/04 THE European Commission is planning a clampdown on all cash transactions of €15,000 or more in a bid to fight terrorists and gangsters laundering their ill-gotten gains. The cash control is part of a new anti-money laundering law set to be unveiled by Frits Bolkestein, the internal market commissioner, on 23 June. The existing 'second money laundering directive' already imposes strict rules on companies trading "high value goods" such as precious stones, metals and works of art. They must make ID checks and keep records of all transactions above the €15,000 threshold, and must alert the authorities if they suspect that the buyers are passing on the proceeds of serious crimes. But European Voice understands the Commission now wants to include all cash transactions in the money-laundering net - from car sales to furniture. "If I go and pay €15,000 in cash for a second-hand car, why shouldn't the dealer be under some obligations?" asked one official. "He would have to identify the customer, checking ID cards or passports or whatever. He would have to keep a record of this ID and keep a record of the transaction for five years. If he thought the money was suspicious he would also have to report it to a financial intelligence unit [anti-money-laundering agency in member states]," he added. However UEAPME, a Brussels-based group representing small businesses, says the cash rule is "a sledgehammer to break a nut". Luc Hendrickx, its director of enterprise policy, warned that small traders would face the brunt of the rules. He said many law-abiding citizens prefer to pay cash instead of cheques or credit cards for perfectly legitimate reasons. Moreover, he warned, forcing firms to vet their clients could also expose them to dangerous situations. "For the banking sector, it is OK. Bank staff are not involved personally. If they have to check or ask for ID then it is normal - everyone accepts it. "For second-hand car dealers, if they say they cannot accept cash, or demand lots of information before they will, maybe the following day the car will be stolen." The €15,000 restriction emerged following wrangling between the Commission's internal market and justice and home affairs departments. Justice and Home Affairs Commissioner António Vitorino's experts originally wanted to force banks to certify that deposits of €15,000 or more were "clean". This idea was strangled at birth after Bolkestein's department and industry groups, such as the Brussels-based European Banking Federation, raised objections. They said the plan would impose an "unacceptable" public service mission role on banks and would "pose serious bank liability issues". Another Vitorino plan for each member state to set-up a directory of bank accounts has also been ditched following widespread opposition from the banking sector and governments - though France and Germany already have directories. The proposals will now merely insist that the banking sector is able to respond quickly to demands for information issued by law enforcement agencies. Meanwhile, the draft directive will expand the set of serious crimes that fall under the scope of the money-laundering regime. |
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| Source Link | http://www.european-voice.com/ |
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| Subject Categories | Justice and Home Affairs, Security and Defence |
