MONEY-LAUNDERING: COMMISSION PLEASED WITH COUNCIL POSITION ON RE-VAMPED DIRECTIVE.

As regards definitions, Parliament wants an explicit reference to electronic money institutions in the draft Directive. The Commission maintains this is not necessary, as it is already inherent in its definition of "credit institutions". The Council, for its part, has expanded the definition of "financial institution" to include "a collective investment undertaking marketing its units or shares".The Council's definition of "criminal activity", which reflects the spirit of Parliament 's amendments, is wider than the Commission's initial proposal. It replaces the Commission's reference to organised crime with "the activities of criminal organisations". Both Council and Parliament have specified, in relation to EU fraud, that the Directive only covers serious cases. The Commission is unhappy with this, wanting to retain its wording of "other illegal activity".The Council favours extending the Directive to include offences generating substantial proceeds and carrying a severe sentence of imprisonment. The definition of "substantial" and "severe" would be left up to each Member State for three years after the Directive's entry into force. After this time, the Council pledges to adopt a more specific definition. This flexibility was needed to forge agreement on a thorny issue and the Commission views it a good compromise. The Council has also changed the Commission's definition of competent anti-money laundering authorities so that Member States are not obliged to create such authorities if they do not already exist.As regards the professions covered by the Directive, the Council common position is broadly in line with the Commission proposal and diverges from the Parliament Opinion. The latter is more lenient towards tax consultants and accountants by limiting the range of their activities to be covered by the Directive. For dealers in precious stones and metals, the Council has added a threshold of Euro 15,000. The Parliament has proposed a threshold of Euro 50,000 for dealers in luxury goods. Parliament favours including art dealers, auctioneers, customs and tax officials in the draft Directive, which neither the Council nor Commission proposes. However, the Commission is keeping an open mind on the inclusion of art dealers and auctioneers.On the controversial issue of the status of legal professions, the Commission and Council both feel the Directive should not cover lawyers acting in an advisory capacity. This view is not shared by the...