The European Parliament (EP) has adopted new rules to
fight money laundering. The main purpose of the new Anti-Money Laundering
Directive is to guard the stability of the financial system from money
laundering and terrorist financing. It provides authorities with new tools to
prevent criminals from legalising illicit proceeds. The EP has introduced several changes in the
European Commission's proposal, a key change being the introduction of an
EU-wide register of beneficial ownership. The register would make it possible
for police and tax authorities to uncover who is actually the true beneficiary
of any EU legal entity, making life much more difficult for
criminals. "For years, criminals in Europe have used the
anonymity of offshore companies and accounts to obscure their financial
dealings. Creating an EU-wide register of beneficial ownership will help to lift
the veil of secrecy of offshore accounts and greatly aid the fight against money
laundering and blatant tax evasion", highlighted the European Parliament
Rapporteur on this issue Krišjānis Kariņš MEP.
Illegally-laundered money accounts for as much as 5%
of the world's GDP and is a challenge both for the competitiveness of the legal
sector as well as for government coffers. The 4th Anti-Money Laundering
Directive is aimed at limiting the scope of criminal and terrorist activity in
Europe. Estimates suggest that money laundering accounts for as much as 2.7% of
the world’s economic activity (GDP) - or $1.6 trillion in 2009. This is a
challenge for both the competitiveness of legal business, as well as for
government coffers. A key change supported by the EPP Group and
the other political groups is the creation of an EU-wide register of beneficial
ownership which is necessary to stop criminals from hiding behind company
structures and trusts. The register would make it possible for police and tax
authorities to uncover who is actually the true beneficiary of any EU legal
entity, making life much more difficult for criminals. Additional changes include exemptions for certain
gambling services and products (e.g. state lotteries), subject to approval by
the European Commission, certain exemptions for e-money products, the
introduction of a 'white list' - jurisdictions with high anti-money laundering
standards, the introduction of a 'politically-exposed persons' list – a list of
high-ranking government officials, Members of Parliament and others in similar
positions.
The EP adopted the changes to the Directive at first
reading. It is awaiting the Council's position. "The EP has taken a tough stance against secrecy that
aids criminals in hiding their proceeds. History repeatedly shows that
criminals, corrupt politicians and dictators have legalised their illicit
proceeds in the European Union. We should put an end to this. Today is a good
day for law-abiding citizens, but a lousy day for criminals", concluded
Krišjānis Kariņš MEP.
2 comments:
We will continue to have stagnant earnings while.we keep instituting policies that keeps banks fat and dominating access to capital based on short-term earnings.
At some point we have to reel short term banking in. And that has not changed. And indeed has been made worse by the rank "Help to Buy" policy.
Time to clamp down on banker earnings, stiffen regulation, and start forcing banks to lend to businesses. Whether that can be done by regulation alone or whether we need to clamp down on one of the primary drivers of short-termism, banker bonuses, or transaction taxes to enhance investment, or all three is still to be determined.
Investopedia defines a hedge fund thus:
'An aggressively managed portfolio of investments that uses advanced investment strategies such as leveraged, long, short and derivative positions …'
There you have it. Straight from The Bean Counter himself. Much of UK Plc's success wasn't based on creating anything meaningful at all, it was simply an über-punt on global markets where the reckless financiers took the upside and the hapless taxpayer, unbeknownst, to them, was always underwriting the downside.
Masters of the universe indeed.
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