The European Commission (EC) has also included Latvia in its latest report on infringement cases against European Union (EU) member states, calling on our country, Ireland and France to properly adopt the directive on prevention of money laundering into the national legal system, informs the Press Department of the EC Representation in Latvia.
The EC decided to start the infringement procedure by sending a letter of formal notice to Ireland and France and an additional letter of formal notice to Latvia, which have incorrectly transposed the Fourth and Fifth Directives on the Prevention of Money Laundering.
These Member States had reported that they had fully transposed the directive, however the EC has identified several cases where the directive has been transposed incorrectly or inadequately into national law.
The EC points out that, among other things, the said deficiency affects important aspects of these directives, for example in the case of France – not ensuring that the country’s register of beneficial owners – the database in which owners of companies or other legal entities are registered – is complete, that is, some legal entities are not included in it .
In the case of Ireland, however, the error relates to the current system, which does not guarantee that the information held in the register of beneficial owners of trusts is appropriate and complete and that the information in the register is accessible. As far as Latvia is concerned, incorrect transposition particularly affects the operation of the Financial Information Collection Unit (FIU), limiting its obligation to exchange information with other FIUs.
The EC emphasizes that anti-money laundering regulations are an important tool in the fight against money laundering and terrorist financing.
The EC explains that the recent money laundering scandals show that stricter regulations at the European Union (EU) level are needed. The EC also notes that legislative gaps in one member state affect the entire EU, so EU rules should be effectively implemented and monitored to fight crime and protect our financial system.
Ireland, France and Latvia have two months to respond and eliminate the shortcomings indicated by the EC. Having not received a satisfactory answer, the EC may decide to issue a reasoned opinion.
With the current package of decisions in violation cases, the EC takes legal action against member states that have not fulfilled the obligations imposed on them by EU legislation. The decisions cover various sectors and various areas of EU policy, and their purpose is to ensure the correct application of EU legislation for the benefit of EU citizens and companies, according to the Press Department of the EC Representation in Latvia.
Tags: European Commission warning letter member states including Latvia
