George Town: While the Cayman Islands remains excluded from an important European Union white list of countries with standards that are said to meet their regulations on anti-money laundering (AML), it appears the regional power is having trouble keeping its own shop in order.
A number of European Member States could face legal action for their failure to implement the Third Anti-Money Laundering Directive in national law. According to a press release issued 5 June, the European Commission has decided to pursue infringement procedures against 15 countries. The Commission will send formal requests to Belgium, Czech Republic, Germany, Greece, Spain, Finland, France, Ireland, Luxembourg, Malta, the Netherlands, Poland, Portugal, Sweden and Slovakia.
These formal requests take the form of 'reasoned opinions', the second stage of the infringement procedure laid down in Article 226 of the EC Treaty. If there is no satisfactory reply within two months, the Commission may refer the matter to the European Court of Justice. The Directive should have been implemented by 15 December 2007.
The Third Anti-Money Laundering Directive adopted in 2005 builds on existing EU legislation and incorporates into EU law the June 2003 revision of the Forty Recommendations of the Financial Action Task Force (FATF), the international standard-setter in the fight against money laundering and terrorist financing. The Directive is applicable to the financial sector as well as lawyers, notaries, accountants, real estate agents, casinos, trusts and company service providers. Its scope also encompasses all providers of goods, when payments are made in cash in excess of €15.000.