CELEX: 62008CJ0532
Failure of a Member State to fulfil obligations
Directive 2005/60/EC
Money laundering and terrorist financing
Failure to transpose within the period prescribed

By its application, the Commission of the European Communities requests the Court to declare that, by failing to adopt the
laws, regulations and administrative provisions necessary to comply with Directive 2005/60/EC of the European Parliament and
of the Council of 26 October 2005 on the prevention of the use of the financial system for the purpose of money laundering
and terrorist financing (OJ 2005 L 309, p. 15, ‘the directive’), or, in any event, by failing to notify those provisions to
the Commission, Ireland has failed to fulfil its obligations under that directive.
The first subparagraph of Article 45(1) of the directive provides, in particular, that the Member States were to bring into
force the laws, regulations and administrative provisions necessary to comply with the directive by 15 December 2007 and to
communicate forthwith to the Commission the text of those provisions.
Having received no information from Ireland as to the measures adopted by it in order to comply with the directive, on 28
January 2008 the Commission sent a letter of formal notice to that Member State inviting it, in accordance with Article 226 EC,
to submit its observations.
In their reply of 19 March 2008, the Irish authorities indicated to the Commission that approval had been given for the drafting
of a bill, which would be subject to public consultation. It was anticipated that the legislation transposing the directive
would be published in the summer of 2008.
On 6 June 2008, the Commission issued a reasoned opinion inviting Ireland to take the measures necessary to comply with its
obligations under the directive within two months of the notification of the opinion.
By letter of 29 July 2008, the Irish authorities informed the Commission that, following the public consultation referred
to above, detailed drafting of the transposing legislation was underway.
In those circumstances, the Commission decided to bring the present action.
Ireland does not contest the alleged infringement. However, it states that the legislation to implement the directive should
be enacted by 31 July 2009.
In that connection, it is settled case-law that the question whether a Member State has failed to fulfil its obligations must
be determined by reference to the situation prevailing in that Member State at the end of the period laid down in the reasoned
opinion, and that the Court cannot take account of any subsequent changes.
In the present case, it is not in dispute that, on the date of expiry of the period laid down in the reasoned opinion, Ireland
had not adopted the measures necessary in order to transpose the directive.
In those circumstances, the action must be upheld, and it must be held that, by failing to adopt the laws, regulations and
administrative provisions necessary to comply with the directive, Ireland has failed to fulfil its obligations under that
directive.

Costs
Under Article 69(2) of the Rules of Procedure, the unsuccessful party is to be ordered to pay the costs if they have been
applied for in the successful party’s pleadings. Since the Commission has applied for costs and Ireland has been unsuccessful,
Ireland must be ordered to pay the costs.
On those grounds, the Court (Sixth Chamber) hereby:
1.
Declares that, by failing to adopt the laws, regulations and administrative provisions necessary to comply with Directive
2005/60/EC of the European Parliament and of the Council of 26 October 2005 on the prevention of the use of the financial
system for the purpose of money laundering and terrorist financing, Ireland has failed to fulfil its obligations under that
directive;
2.
Orders Ireland to pay the costs.
[Signatures]
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Language of the case: English.