EU Launches Infringement Proceedings against Three Countries over Anti-Money Laundering Directive

The European Commission has taken action against Ireland, France, and Latvia for failing to correctly implement an updated anti-money laundering directive. The move follows a finding of “several instances of incorrect transposition” of the fifth Anti-Money Laundering Directive into national law in the three countries.

Issues with Beneficial Ownership Registers

• Ireland: The commission has identified issues with Ireland’s beneficial ownership register for trusts, citing concerns over completeness and accessibility.
• France: France is accused of failing to ensure the completeness of its own national beneficial ownership register.
• Latvia: Latvia faces criticism over the functioning of its Financial Intelligence Unit.

Importance of Stricter Regulations

The commission stressed that anti-money laundering rules are crucial in the fight against money laundering and terrorism financing, pointing to recent scandals as evidence of the need for stricter regulations at the EU level. “Legislative gaps occurring in one member state have an impact on the EU,” said a commission spokesperson. “That is why EU rules should be implemented and supervised efficiently to combat crime and protect our financial system.”

Next Steps

Ireland, France, and Latvia now have two months to respond to the formal notice and address the shortcomings raised by the commission. Failure to do so may result in a reasoned opinion being issued.

Additional Action

The commission has also sent a reasoned opinion to six other EU members - Bulgaria, Estonia, Croatia, Slovenia, Slovakia, and Ireland - urging them to implement a directive aimed at streamlining procedures for public procurement and permit granting ahead of the implementation of a trans-European transport network.