MEPs protective on anti-money laundering rules

Two Maltese MEPs have justified their vote against a parliamentary resolution on a stronger anti-money laundering directive approved by MEPs in Brussels.

Both Labour MEP Marlene Mizzi and Nationalist MEP Roberta Metsola described the resolution on the AMLD, which will require banks, realtors and casinos to be more vigilant about clients’ transactions, as going against the interests of Malta’s gaming and financial services sectors.

The proposed rules will require banks, financial institutions, auditors, lawyers, accountants, tax advisors and real estate agents, among others, to be more vigilant about suspicious transactions.

Mizzi displayed a protective view of the proposed laws, saying “draconian” rules could be of interest to certain member states who view Malta as a strong competitor on gaming laws.

“Financial and fiscal sector rules should be the remit of the member state and not subject to a one-size-fits-all legislation. Malta has a very robust regulator and vigilant financial institutions. Our financial services sector is healthy, not least because of the solid reputation Malta and its banks and financial institution enjoy.”

Both Mizzi and Metsola said the final text, discussed at committee level, did not take into consideration Malta’s specific make-up.

“In the end we could not bridge all our views to secure a compromise text,” Metsola said.

The MEP is a member of the Special Committee on Organised Crime, Corruption and Money Laundering (CRIM). “I know how important it is to tackle this type of crime and I remain committed to doing so, but we must work harder to find ways to do this that does not disproportionately and negatively affect the systems of one member state. Having a one-size-fits-all approach to this type of sensitive legislation on a European level simply does not work,” she said.

Both MEPs said they consulted government authorities on the effects of the AMLD.

“The vote was not against money laundering as such,” Mizzi said. “But against the report in its totality and its repercussions on Malta’s financial services… I would also vote against the financial transactions tax, and any report implicating Malta as a tax haven.”

Five out of six Maltese MEPs voted against the resolution on the review of the Fourth Anti-Money Laundering Directive that is expected in late 2014. Apart from Mizzi and Metsola, Labour MEPs Claudette Abela Baldacchino, John Attard-Montalto, and Joseph Cuschieri also voted against the draft law. Nationanlist MEP David Casa was not present for the vote.

Under the AMLD, the ultimate owners of companies and trusts would have to be listed in public registers in EU countries. Online gambling will require due diligence measures for all customers as soon as a business relationship is established.

The vote is not the final decision as the EU Council may reject the positions of the European Parliament. A second reading and further negotiations are expected to take place after the European elections.

The legislative resolution on the AMLD was passed by 643 votes to 30 with 12 abstentions and the legislative resolution on transfer of funds by 627 votes to 33 with 18 abstentions.

Organisations like Transparency International, the global coalition against corruption, say that EU money laundering rules need better enforcement and more information required to identify the source of funds passing through European financial markets. “Information on who ultimately owns and controls companies, trusts and other legal structures needs to be made publicly available in registers across the EU.”