WRITTEN QUESTION P-2637/01 by Toine Manders (ELDR) to the Commission. Banking secrecy.
Date: 2001-09-21
Institutions: European Parliament, Provisional data
Subjects: banking secrecy, judicial cooperation in criminal matters in the EU, law of banking, money laundering, tax avoidance, terrorism

C 134 E/68

Official Journal of the European Communities

EN

6.6.2002

As indicated in its reply to the Honourable Member’s Written Question E-1712/01 (1), the Commission
believes that the national level continues to be the most appropriate level for action. The Commission does
not therefore currently envisage a new Community initiative to prevent ‘trafficking in young footballers’.

The Commission also believes that Council Directive 94/33/EC of 22 June 1994 on the protection of
young people at work plays a part in ensuring the protection of the young people concerned. The aim of
this Directive is to prohibit child labour, to regulate and protect work by adolescents and in general to
ensure that all employers guarantee that young people have working conditions suited to their age. Its
main objective is therefore to improve young people’s working conditions;
instead of absolutely
prohibiting child labour, it allows for the possibility of derogations for Member States.

(1) OJ C 364 E, 20.12.2001, p. 186.

(2002/C 134 E/070)

WRITTEN QUESTION P-2637/01

by Toine Manders (ELDR) to the Commission

(21 September 2001)

Subject: Banking secrecy

As a result of their banking secrecy, a number of countries both within and outside the European Union
are making it possible for criminals, terrorists and/or dictators to deposit funds obtained through criminal
activities and to benefit from the growth of those funds. This may be harming the EU as a consequence of
the loss of tax revenue and the outflow of currency. Even intelligence services and tax authorities have no,
or very little, access to information concerning account holders.

The terrorist attacks in the US have shown that banking secrecy can have even more far-reaching
consequences. Evidently, there is even a link between banking secrecy and terrorism.

International terrorism and attacks on the scale of acts of war as perpetrated in the US are only possible by
virtue of a vast and intricate organisation and, furthermore, a great deal of money.

It is self-evident that, as a result of banking secrecy, it is possible for a terrorist organisation to find a safe
place in tax havens to put its money ; money obtained by criminal means and black money ; and even
to benefit from the growth thereof.

It is unthinkable that EU Member States should be allowing banks inadvertently to facilitate the activities of
terrorists and/or criminals.

In my opinion, countries which apply the principle of banking secrecy too rigidly are indirectly assisting
criminal organisations, which would be unable to operate if they did not have a great deal of money in a
safe and anonymous place.

Reference may be made to unfair competition vis-à-vis banks which hold only money obtained by lawful
means. Reference may also be made (perhaps in an indirect way) to protection of consumers who use the
services of banks and who may be exposed to risks as a consequence of the abovementioned unlawful
actions.

Can sanctions, such as fines or economic blockades, be imposed on Member States and even on countries
outside the European Union which, as a consequence of their banking secrecy, accept money obtained by
criminal means and, in so doing, facilitate the actions of criminals and/or terrorists?

If so, what sanctions may be imposed, and when?

If not, can the Commission, and does it intend to, submit proposals to enable sanctions to be imposed in
future?

6.6.2002

EN

Official Journal of the European Communities

C 134 E/69

Answer given by Mr Bolkestein on behalf of the Commission

(17 October 2001)

The Commission, together with the Member States,
criminals, and notably terrorists, the funding of their activities.

is looking into a range of possibilities to deny

At present, under the European anti-money laundering directive (1), banks and other financial institutions
must lift banking secrecy where there is an indication of money laundering and report their suspicions to
the competent authorities. The range of criminal activity covered by this reporting obligation differs from
one Member State to another, but will be considerably extended by the proposal for a second directive,
which is currently in the conciliation procedure.

The Commission does not therefore accept that the practice of banking secrecy creates a welcoming
environment for criminal or terrorist money within the Union.

At the wider international level the fight against money laundering is led by the Financial Action Task
Force on Money Laundering (FATF), in which all the Member States and the Commission participate. For
several years now, the FATF has been conducting an exercise to identify and name countries and territories
which do not cooperate adequately in international efforts to combat criminal money, for example by
maintaining excessive banking secrecy or denying judicial cooperation. The FATF has already called on its
member countries to instruct their banks and financial institutions to pay particular attention to financial
transactions involving a number of such countries. Their response has generally been positive and remedial
action has already been taken in a number of these countries. For countries that do not respond
adequately, the FATF members are prepared to apply further countermeasures.

A coordinated response of the Member States to countermeasures decided on by the FATF will again be
discussed at the Joint Economic and Financial Affairs/Justice and Home Affairs (Ecofin/JAI) Council on
16 October 2001.

Full details of the FATF initiative and the countries in question can be found on the FATF website: http://
www. oecd. org/fatf.

(1) Council Directive 91/308/EEC of 10 June 1991 on prevention of the use of the financial system for the purpose of

money laundering, OJ L 166, 28.6.1991.

(2002/C 134 E/071)

WRITTEN QUESTION E-2640/01

by Anna Karamanou (PSE) to the Council

(3 October 2001)

Subject: Arrest of eight foreign nationals by the Taliban in Afghanistan

Since 5 August, the Taliban Islamic fundamentalist regime has held eight foreign nationals (four German,
two Australian and two American) and 16 Afghans working for the NGO, Shelter Now International, in
custody charged with attempting to convert Muslims to Christianity. At the same time, hundreds of
humanitarian aid workers are helping many thousands of Afghan civilians to survive the civil war. Under
Islamic law, the sharia, the accused may face the death sentence.

What measures and diplomatic initiatives will the Council take to compel the Islamic regime to guarantee
the safety of the foreign nationals in its custody and respect their human rights, and what steps will it take
to exert pressure on the unlawful government of Afghanistan to comply with international law and respect
religious freedom, the right of freedom of expression and free will?