Skip to content

News

EU takes Luxembourg to court over money laundering rules

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn

The European Commission on 9th June took Luxembourg to court, asking the European Court of Justice (ECJ) to impose a daily penalty on the country for failing to put new EU rules to stop money laundering into law.

Without the rules on the freezing and confiscation of proceeds of crime, EU and national law enforcement authorities are unable to stop the proceeds from crime from flowing into the legitimate economy, the Commission said. It is also harder for the EU to recover profits from organised crime.

“If the court confirms (our findings), there would be a daily penalty (imposed on Luxembourg),” Adalbert Jahnz, a spokesperson for the EC Migration, Home Affairs and Security Union office said on the phone.

The rules that the Commission claims Luxembourg has failed to implement were “a crucial tool to break criminals’ business models and combat organised crime,” the Commission said in a press release.

Luxembourg conceded it was late with the implementation of the rules. “Because of the health crisis and the particular complexity (…) this work required some time”, the justice ministry said in an email.

“Luxembourg will do everything in its power to ensure full transposition of the directive (…) before the delivery of the judgment”, the ministry said. A fine would only apply after an ECJ ruling in favour of the Commission.

Source: Luxembourg Times

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn

Related Posts

Neopay

FCA Remote Work Expectations? A Complete Compliance Guide

With many businesses now considering a hybrid or remote work life, it is vital that regulated firms know where they stand in terms of remote working expectations. No matter where
Read More >
FCA Plans to Tighten Appointed Representatives Legislation

FCA Plans to Tighten Appointed Representatives Legislation

The FCA is making plans to tighten up their appointed representatives (AR) legislation following the publication of a consultation paper. Such changes would bring a little more consumer protection to
Read More >