Procedure : 2002/0132(COD)
Document stages in plenary
Document selected : A6-0167/2005

Texts tabled :

A6-0167/2005

Debates :

PV 07/06/2005 - 15

Votes :

PV 08/06/2005 - 6.3

Texts adopted :

P6_TA(2005)0225

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30 May 2005
PE 355.777v02-00 A6-0167/2005

on the Council common position for adopting a regulation of the European Parliament and of the Council on controls of cash entering or leaving the Community

(14843/1/2004 – C6-0038/2005 – 2002/0132(COD)) 

Committee on Civil Liberties, Justice and Home Affairs

Rapporteur: Vincent Peillon

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION
 EXPLANATORY STATEMENT
 PROCEDURE

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the Council common position for adopting a regulation of the European Parliament and of the Council on controls of cash entering or leaving the Community

(14843/1/2004 – C6-0038/2005 – 2002/0132(COD))

(Codecision procedure: second reading)

The European Parliament,

–   having regard to the Council common position (14843/1/2004 – C6-0038/2005),

–   having regard to its position at first reading(1) on the Commission proposal to Parliament and the Council (COM(2003)0328)(2),

–   having regard to the amendments to the Commission proposal (COM(2003)0371)(3),

–   having regard to Article 251(2) of the EC Treaty,

–   having regard to Rule 62 of its Rules of Procedure,

–   having regard to the recommendation for second reading of the Committee on Civil Liberties, Justice and Home Affairs (A6-0167/2005),

1.  Approves the common position as amended;

2.  Instructs its President to forward its position to the Council and Commission.

Council common position  Amendments by Parliament

Amendment 1

Recital 9a (new)

 

(9a) Directive 95/46/EC of the European Parliament and of the Council of 24 October 1995 on the protection of individuals with regard to the processing of personal data and on the free movement of such data1 and Regulation (EC) No 45/2001 of the European Parliament and of the Council of 18 December 2000 on the protection of individuals with regard to the processing of personal data by the Community institutions and bodies and on the free movement of such data2 apply to the processing of personal data by the competent authorities of the Member States pursuant to this Regulation.

_________________________

1 OJ L 281, 23.11.1995, p. 31.

2 OJ L 8, 12.1.2001, p. 1.

 

Amendment 2

Recital 14

(14) This Regulation respects the fundamental rights and observes the principles recognised, in particular, by the Charter of Fundamental Rights of the European Union,

(14) This Regulation respects the fundamental rights and observes the principles recognised in Article 6(2) of the Treaty on European Union and reflected in the Charter of Fundamental Rights of the European Union, in particular in Article 8 thereof,

Amendment 3

Article 7a (new)

 

Article 7a

Any information that is by nature confidential or that is provided on a confidential basis shall be subject to professional secrecy and shall not be disclosed by the competent authorities without the express permission of the person or authority providing it. The communication of information shall, however, be permitted when the competent authorities are obliged to do so pursuant to the provisions in force, particularly in connection with legal proceedings. The disclosure or communication of information shall fully comply with the data protection provisions in force, in particular Directive 95/46/EC and Regulation (EC) No 45/2001.

(1)

OJ C 67 E, 17.3.2004, p. 259.

(2)

OJ C 227 E, 24.9.2002, p. 574.

(3)

Not yet published in OJ.


EXPLANATORY STATEMENT

Background

On 25 June 2002, the Commission brought forward a proposal for a regulation on controls of cash entering or leaving the Community as a complement to Council Directive 91/308/EEC on prevention of the use of the financial system for the purpose of money laundering.

The two key elements of the proposal are the introduction of an obligation to declare cash movements of EUR 15 000 or more and a provision that the competent authorities be informed of transactions that present a risk of money laundering.

Parliament gave its opinion at first reading on 15 May 2003, adopting 23 amendments. Most of these advocated a change to the proposed legal instrument: Parliament wanted a directive, not a regulation.

Parliament also proposed adding a legal basis: Article 95 (EC) on the approximation of the provisions laid down by law, regulation or administrative action in Member States which have as their object the functioning of the internal market.

Parliament also wanted to let Member States choose between two procedures: an obligation to disclose and an obligation to declare.

In addition, the definition of 'cash' was expanded to include a wider range of cheques.

On 1 July 2003, the Commission brought forward an amended proposal, accepting two amendments (13 and 15) in full and three amendments (2, 11 and 21) in part.

Council common position

The Council adopted its common position by qualified majority on 17 February 2005.

It rejected Parliament's proposal to change the legal instrument to a directive, but agreed to add Article 95 (EC) as a legal basis.

The Council supports the Commission's proposal on the obligation to declare, but does not agree with the system suggested by Parliament whereby Member States would be allowed to choose between declaration and disclosure. The Council has, however, increased flexibility by allowing for declarations to be made orally, in writing, or electronically.

The Council has decreased the limit from EUR 15 000 to EUR 10 000.

In an effort to make Community and international rules more coherent, the definition of 'cash' was expanded in line with both Parliament's suggestion and Special Recommendation IX of the Financial Action Task Force on Money Laundering.

The information obtained via declarations or controls must be made available to the Financial Intelligence Unit (FIU). Information may be recorded even when the sum involved amounts to less than EUR 10 000, if there are indications of illegal activities.

The Council also simplified the provision on penalties. Member States will have to introduce effective, dissuasive and proportionate penalties for infringements of the obligation to declare cash movements when crossing external EU borders.

Rapporteur's position

The rapporteur welcomes the Council's common position. In the face of increasing concern about money laundering and its role in organised crime and terrorism, it is important to legislate in this field and to monitor effectively cash movements at our borders.

'Moneypenny' was a joint operation carried out by the Member States' customs services between September 1999 and February 2000. A report on the operation showed that existing controls to prevent money laundering were undermined by the disparate nature of the Member States' methods for monitoring cash movements at borders. The Member States' approaches were found to be highly divergent, resulting in the emergence of major loopholes in the monitoring and protection systems in place, and the lack of protection for the Community as a whole. It is therefore essential and urgent – especially with the introduction of the euro – that the Union establish a unified, effective strategy in this field.

The rapporteur believes the proposed legal instrument to be the right one, in particular in terms of easing the flow of information between Member States. Compared with the original proposal, this regulation seems clearer and more practical.

The amendments tabled by the rapporteur aim to improve the protection of personal data, a topic on which Parliament has voiced its opinion several times (Amendments 2, 3, 4, 5).

In view of the urgent need to take effective action and the long delays that have, regrettably, occurred so far, the rapporteur looks forward to fruitful cooperation with the Council leading to a second reading agreement.


PROCEDURE

Title

Council common position for adopting a regulation of the European Parliament and of the Council on controls of cash entering or leaving the Community

Reférences

14843/1/2004 – C6-0038/2005 – 2002/0132(COD)

Legal basis

Art. 251(2) and Arts. 95 and 135 EC

Basis in Rules of Procedure

Rule 62

Date of first reading in EP – P5

15.5.2003

T5-0214/2003

Commission proposal

COM(2002)0328 – C5-0291/2002

Modified Commission proposal

COM(2003)0371

Date of announcement in plenary of receipt of common position

24.2.2005

Committee responsible
  Date announced in plenary

LIBE
24.2.2005

Rapporteur(s)
  Date of appointment

Vincent Peillon

21.2.2005

 

Previous rapporteur(s)

 

Discussed in committee

26.4.2005

26.5.2005

 

 

Date of adoption

26.5.2005

Result of final vote

for:

against:

abstentions:

29

0

0

Members present for the final vote

Alexander Nuno Alvaro, Edit Bauer, Johannes Blokland, Mihael Brejc, Michael Cashman, Giusto Catania, Charlotte Cederschiöld, Carlos Coelho, Antoine Duquesne, Patrick Gaubert, Lilli Gruber, Magda Kósáné Kovács, Wolfgang Kreissl-Dörfler, Barbara Kudrycka, Stavros Lambrinidis, Romano Maria La Russa, Henrik Lax, Edith Mastenbroek, Claude Moraes, Martine Roure, Ioannis Varvitsiotis, Stefano Zappalà

Substitutes present for the final vote

Ignasi Guardans Cambó, Luis Francisco Herrero-Tejedor, Sophia In't Veld, Jean Lambert, Siiri Oviir, Vincent Peillon, Kyriacos Triantaphyllides

Substitutes under Rule 178(2) present for the final vote

Date tabled – A6

30.5.2005

A6-0167/2005

Remarks

...

Last updated: 8 August 2006Legal notice