EEA EFTA Comment on the proposal on information accompanying transfers of funds

Published 28-11-2013
The EEA EFTA States have submitted comments to the Lithuanian Presidency of the Council of the European Union, the European Commission and the European Parliament on the proposal for a regulation on information accompanying transfers of funds.

The threats associated with money laundering and terrorist financing are constantly evolving, which necessitates regular updates to related rules. The purpose of the proposal is to revise a previous regulation in order to improve the traceability of payments and ensure that the EU framework remains fully compliant with international standards. It takes into account the latest recommendations of the Financial Action Task Force (FATF), the world anti-money laundering body, and goes further in a number of fields to promote the highest standards for anti-money laundering and counter terrorism financing. Among other things, it imposes a requirement to verify the identity of the beneficiary (where not previously identified) for payments originating outside the EU and where the amount is more than EUR 1 000.

In their comment, the EEA EFTA States are concerned about the rather narrow wording of the scope of Article 24 of the proposed regulation, which puts forward certain conditions that have to be fulfilled, and the necessary procedures to be followed by Member States in order to conclude agreements with countries or territories that do not form part of the territory of the EU.

Since the EEA EFTA States are also part of the Internal Market, situations regarding the EEA EFTA States should also qualify for derogations, such as in the case of Liechtenstein, which is in a currency union with Switzerland, to avoid significant negative effects on its economy if transfers of funds between an EEA EFTA State and a third state are not treated in the same way as transfers within the EEA EFTA State.

Read the full comments here.

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