European Parliament Votes To Tighten Controls On Money Transfers

by Ulrika Lomas, for LawAndTax-News.com, Brussels

11 July 2006

The European Commission last week welcomed the European Parliament's agreement at first reading on the Commission's proposal for a Regulation to tighten controls on money transfers in order to cut off funding sources for terrorists and other criminals.

The proposed Regulation would require that money transfers be accompanied by the identity of the sender including the name, address and account number, in order to assist the appropriate law enforcement authorities in detecting and investigating terrorists and other criminals, and in tracing their assets.

This proposal is part of the EU Plan of Action to Combat Terrorism, and would bring EU policy into line with the recommendations of the Financial Action Task Force (FATF), the international body that sets standards to combat money laundering and terrorist financing.

The Council of Ministers is expected to vote on the proposal in due course.

Internal Market and Services Commissioner Charlie McCreevy announced on Friday that:

“Today's vote is an important step towards our aim of cutting off terrorist funding. It shows the EU's determination to participate fully in the international effort to combat terrorism. I now call upon the Council to give its agreement as soon as possible.”

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