There is strong co-ordination of measures to deter money laundering and criminality in the banking sector at EU level. A third money laundering directive is under consideration within the EU. It received political agreement from Finance Ministers last December and is currently before the European Parliament. I understand that the Luxembourg Presidency hopes to have final agreement on the directive before end June. This process will include adoption of the final text at a forthcoming Council of Ministers meeting.
The third money laundering directive will replace and update the 1991 and 2001 money laundering directives which imposed obligations on financial institutions and, more recently, on lawyers, accountants and auctioneers to identify their clients and report suspicious transactions to the police authorities. The new directive reflects the 2003 revision of the recommendations of the financial action task force on money laundering, FATF, the main international anti-money laundering organisation.
One of the directive's central features is to considerably strengthen the obligation on financial institutions, and others, to identify the beneficial ownership of legal entities. It will also impose an obligation on financial institutions and others to pay particular attention to "politically exposed persons" from other member states and from third countries. The directive also brings terrorist funding into the money laundering framework and introduces the concept of a risk based approach to the implementation of its requirements. If agreed, the directive will require amendment of our domestic legislation regarding money laundering.
The issues of money laundering and criminality generally are, of course, also regularly discussed at the Justice and Home Affairs, JHA, Council of the EU and a report on progress in the implementation of the framework decision of 26 June 2001 on money laundering, the identification, tracing, freezing, seizing and confiscation of instrumentalities and the proceeds of crime, is due to be submitted by the commission to the JHA council by 30 June of this year. Ireland also participates fully in work to ensure that the EU legal frameworks are adapted to the FATF's special recommendations on terrorist financing.