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Money Laundering Legislation strikes the Right Balance
Wednesday April 27, 2005
It is possible to crack down on terrorist financing without overburdening financial institutions with excessive regulation, Timothy Kirkhope MEP, Leader of the Conservatives in the European Parliament, said today.
Mr Kirkhope, a member of the Parliament's civil liberties, justice and home affairs committee, welcomed the committee's vote in favour of the Third Money Laundering Directive, which aims to further impede money laundering and the funding of terrorist organisations.
Mr Kirkhope said:
"I'm in favour of a balanced, risk-based approach which empowers our law enforcement authorities to combat criminality and terrorist financing but does not place excessive limits on the financial services industry, which in Britain is huge. I think the report put before the committee yesterday moved in the right direction but whether it has moved far enough is yet to be seen.
One of the amendments I tabled would have given national governments leeway to protect the duty of confidentiality between lawyer and client, something fundamental to the British justice system. I withdrew this amendment at committee stage on a procedural point but I will reintroduce it when the full Parliament considers the matter because I believe it to be of vital importance.
I'm pleased that an amendment similar to one I tabled to extend the implementation period for this directive from 12 to 24 months has been adopted by the committee. This will allow enough time for national governments to consult widely on the most effective implementation methods.
In due course, it is essential that the British Government does not see the implementation of this directive as an opportunity for further "gold-plating" this legislation - as it is prone to do with other EU directives - and burden financial institutions with additional, unnecessary rules. It is also vital that those parts of the directive which give fresh powers to national governments to simplify procedures for most citizens making transactions in financial services are implemented courageously and vigorously by Member States and their regulatory bodies."
ENDS
