WRITTEN QUESTION E-1358/02

by Gerhard Schmid (PSE) to the Commission

(14 May 2002)

Subject: Legislation on money laundering in the applicant countries

1. Which of the applicant countries have legislation on money laundering which takes into account Council Directive 91/308/EEC(1) of 10 June 1991 on prevention of the use of the financial system for the purpose of money laundering?

2. In which countries are improvements necessary?

3. Where exactly are the improvements necessary?

4. By what date must the improvements be completed?

(1) OJ L 166, 28.6.1991, p. 77.

Answer given by Mr Verheugen on behalf of the Commission

(21 June 2002)

The Commission is closely monitoring the implementation and enforcement of the first anti-money laundering Directive (Council Directive 91/308/EEC of 10 June 1991 on prevention of the use of the financial system for the purpose of money laundering) and the plans for implementation of the recently adopted second anti-money laundering Directive (Directive 2001/97/EC of the Parliament and of the Council of 4 December 2001 amending Council Directive 91/308/EEC(1)). To this end, from September 2001 to February 2002, the Commission organised a number of meetings with all applicant countries. Further meetings are planned with certain countries to follow up the implementation of the commitments.

All applicant countries have now passed legislation which fully, or in a limited number of cases, almost fully implements the first Directive. A number of the applicant countries have also passed or will soon pass legislation to introduce the provisions of the second money-laundering Directive in their national legal order. It should be noted that the Member States have until mid-2003 to transpose the second Directive.

Although implementation is completed certain problems in the enforcement of the legislation still remain. The Commission is working closely with the applicant countries and several projects supported by the pre-accession funds have been or will be carried out to remedy these deficiencies before accession.

Improvements are necessary in almost all applicant countries to effectively combat money laundering. So far, only Slovenia has reached a level which is fully satisfactory. Main efforts are needed in Poland, Lithuania and Bulgaria. Most countries must further strengthen their financial intelligence units which co-ordinate the efforts to combat money laundering and have to invest in more specialised training, including for judges and prosecutors. In certain cases it is a question of increasing the number of staff, in others the frequency and quality of the reporting from credit institutions.

There have also been substantial discussions on the issue of anonymous or bearer savings passbooks, which in the view of the Commission are incompatible with the first money laundering Directive. These passbooks, which existed in the Czech Republic, Hungary, Malta and Slovakia, have now been abolished or are in the process of being abolished in all these countries. Hungary,

which currently is blacklisted by the Financial Action Task Force on Money Laundering (FATF), has passed legislation in December 2001 which prohibits the issue of new bearer pass books and which provides for existing bearer pass books to be converted into named savings accounts upon the first presentation of the pass book at a banking institution. There is a good chance that the FATF will de-list Hungary at its next meeting in June 2002.

(1) OJ L 344, 28.12.2001.