EU agrees rules to fight money laundering

EU finance ministers today agreed a directive aimed at fighting money laundering.

EU finance ministers today agreed a directive aimed at fighting money laundering.

The EU directive aims to stop the creation of trusts and other vehicles that recycle money by hiding the identity of its ultimate owner.

The rules will kick in whenever an individual alone, or through a company, completes a cash transaction worth €15,000 or more.

Bankers, accountants and other professions will have to keep a closer eye on who they do business with to stamp out money laundering or bankrolling of terrorist activity, the ministers said.

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The European Parliament has already approved the updating of rules introduced over a decade ago to take into account terrorist financing and toughen up the checks on clients that many professions will have to make.

It voted to oblige the naming of every company shareholder whose stake tops 25 per cent; the commission had wanted the obligation to be triggered by a 10 per cent stake.

The new rules incorporate recommendations on money laundering made by the Group of Seven rich nations.