Money-laundering rules go ‘too wide’

Date: 15/03/01

By Peter Chapman

MEPs are set to spark a battle with EU governments over new rules to combat money laundering after pushing to narrow their scope.

Parliamentarians say ministers blundered when they chose to let member states define the types of crimes that can involve money laundering.

For example, they could include the depositing of tax evasion proceeds as a criminal offence.

German centre-right MEP Klaus-Heiner Lehne, the rapporteur on the issue, wants the rules to focus on organised criminal gangs.

He also wants to ensure solicitors, accountants and tax advisors can give advice to clients or represent them in proceedings without jeopardising professional secrecy.

Not surprisingly, European bankers are happier with the bid to narrow the scope of the rules.

Frédéric de Brouwer, legal affairs expert for the European Banking Federation, said the common position agreed by governments could result in "converting banks into criminal investigators".

MEPs are set to spark a battle with EU governments over new rules to combat money laundering after pushing to narrow their scope.