Proposal for a Directive of the European Parliament and of the Council Amending Directive 2005/60/EC on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing, as regards the implementing powers conferred on the Commission
Date: 2006-12-22
Institutions: European Commission
Subjects: EU law, financial legislation, law of banking, money laundering, operation of the Institutions, terrorism

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 22.12.2006 
COM(2006) 906 final 

2006/0281 (COD) 

Proposal for a 

DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL  

Amending 

Directive 2005/60/EC on the prevention of the use of the financial system for the purpose 
of money laundering and terrorist financing, as regards the implementing powers 
conferred on the Commission 

(presented by the Commission) 

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2006/0281 (COD) 

Proposal for a 

DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL  

Amending 

Directive 2005/60/EC on the prevention of the use of the financial system for the purpose 
of money laundering and terrorist financing, as regards the implementing powers 
conferred on the Commission 

(Text with EEA relevance) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, and in particular Article 
47(2), first and third sentences, and Article 95 thereof, 

Having regard to the proposal from the Commission1, 

Having regard to the opinion of the European Economic and Social Committee2, 

Having regard to the opinion of the European Central Bank, 

Acting in accordance with the procedure laid down in Article 251 of the Treaty, 

Whereas: 

(1) 

(2) 

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2 
3 

4 

Directive 2005/60/EC of the European Parliament and of the Council  3 provides that 
certain measures are to be adopted in accordance with Council Decision 1999/468/EC 
of 28 June 1999 laying down the procedures for the exercise of implementing powers 
conferred on the Commission4. 

Decision 1999/468/EC has been amended by Decision 2006/512/EC, which introduced 
a regulatory procedure with scrutiny for measures of general scope designed to amend 
non-essential elements of a basic instrument adopted in accordance with the procedure 
referred to in Article 251 of the Treaty, including by deleting some of those elements 
or by supplementing the instrument by the addition of new non-essential elements. 

OJ C […], […], p. […]. 
OJ C […], […], p. […]. 
OJ L 309, 25.11.2005, p. 15. Directive as amended by Commission Directive 2006/70/EC (OJ L 214, 
4.8.2006, p. 29). 
OJ  L  184,  17.7.1999,  p.  23.  Decision  as  amended  by  Decision  2006/512/EC  (OJ  L  200 ,  22.7.2006, 
p.11). 

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(3) 

(4) 

(5) 

In accordance with the joint statement of the European Parliament, the Council and the 
Commission5 on Decision 2006/512/EC, instruments which are already in force must 
be  adjusted  in  accordance  with  the  applicable  procedures.  That  statement  indicates  a 
list  of  instruments  which  should  be  adjusted  as  a  matter  of  urgency,  including 
Directive 2005/60/EC. 

In  particular  power  should  be  conferred  on  the  Commission  to  adopt  the  measures 
necessary for the implementation of Directive 2005/60/EC in order to take account of 
technical  developments  in  the  fight  against  money  laundering  or  terrorist  financing 
and to ensure uniform application of that Directive. More particularly, those measures 
are designed to clarify the technical aspects of some of the definitions provided under 
Directive  2005/60/EC,  to  establish  technical  criteria  for  assessing  whether  situations 
present a low risk - or on the contrary, a high risk - of money laundering or terrorist 
financing, whether it is justified or not to apply that Directive to persons carrying out a 
financial  activity  on  an  occasional  or  very  limited  basis,  and  to  adapt  the  amounts 
foreseen  in  that  Directive,  taking  account  of  economic  developments  and  changes  in 
international standards. Since those measures are of general scope and are designed to 
amend  and  supplement  Directive  2005/60/EC  by  the  addition  of  new  non-essential 
elements,  they  should  be  adopted  in  accordance  with  the  regulatory  procedure  with 
scrutiny provided for in Article 5a of Decision 1999/468/EC. 

Directive  2005/60/EC  provided  for  a  time  restriction  concerning  the  implementing 
powers  conferred  to  the  Commission.  In  their  joint  statement  on  Decision 
2006/512/EC, the European Parliament, the Council and the Commission have stated 
that  Decision  2006/512/EC  provides  a  horizontal  and  satisfactory  solution  to  the 
European  Parliament's  wish  to  scrutinise  the  implementation  of  instruments  adopted 
under the co-decision procedure and that, accordingly, implementing powers should be 
conferred  on  the  Commission  without  time-limit.  The  European  Parliament  and 
Council also declared that they would make sure that the proposals aimed at repealing 
the  provisions  in  the  instruments  that  provide  for  a  time-limit  on  the  delegation  of 
implementing powers to the Commission are adopted as rapidly as possible. Following 
the  introduction  of  the  regulatory  procedure with  scrutiny,  the  provision  establishing 
that time restriction in Directive 2005/60/EC should be deleted. 

(6) 

Directive 2005/60/EC should therefore be amended accordingly. 

(7) 

Since  the  amendments  to  be  made  to  Directive  2005/60/EC  by  this  Directive  are 
adjustments of a technical nature which only concern the committee procedures, they 
do not need to be transposed by the Member States. It is therefore not necessary to lay 
down provisions to that effect. 

HAVE ADOPTED THIS DIRECTIVE: 

Article 1 

Directive 2005/60/EC is amended as follows: 

(1) 

Article 40(1) is amended as follows: 

5 

OJ C 255, 21.10.2006, p. 1. 

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(a)  The terms "in accordance with the procedure referred to in Article 41(2)" are 

deleted. 

(b)  The following subparagraph is added: 

"The measures referred to in the first subparagraph, designed to amend non-essential 
elements  of  this  Directive,  including  by  supplementing  it,  shall  be  adopted  in 
accordance with the regulatory procedure with scrutiny referred to in Article 41(2a)." 

(2) 

Article 40(3) is amended as follows: 

(a) 

The  terms  "in  accordance  with  the  procedure  referred  to  in  article  41(2)"  are 
deleted. 

(b) 

The following subparagraph is added: 

"The measures referred to in the first subparagraph, designed to amend non-essential 
elements  of  this  Directive,  shall  be  adopted  in  accordance  with  the  regulatory 
procedure with scrutiny referred to in Article 41(2a)." 

(3) 

Article 41 is amended as follows: 

(a) 

The following paragraph 2a, is inserted: 

'2a. Where reference is made to this paragraph, Article 5a(1) to (4) and Article 7 of 
Decision  1999/468/EC  shall  apply,  having  regard  to  the  provisions  of  Article  8 
thereof.' 

(b) 

Paragraphs (3) and (4) are deleted. 

Article 2 

This  Directive  shall  enter  into  force  on  the  […]  day  following  that  of  its  publication  in  the 
Official Journal of the European Union. 

Article 3 

This Directive is addressed to the Member States. 

Done at Brussels,  

For the European Parliament 
The President 

For the Council 
The President 

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