Committee criticises HM Treasury on the Fourth Money Laundering Directive
13 January 2015
Lord Boswell, Chairman of the House of Lords EU Committee has written to Lord Deighton, Commercial Secretary to the Treasury, critising the Treasury's proposal to challenge the legal basis of the Fourth Money Laundering Directive.
- Letter from Lord Boswell of Anyho to Lord Deighton, Commercial Secretary to the Treasury, 14 January 2015
- Letter from Lord Deighton, Commercial Secretary to the Treasury, to Lord Boswell of Anyho, 4 December 2014
- Letter from Lord Boswell of Anyho to Lord Deighton, Commercial Secretary to the Treasury, 18 June 2014
Background
On February 5 2013, the European Commission published a proposal for a Directive of the European Parliament and of the Council on the prevention of the use if the financial system for the purpose of terrorist financing and money laundering as well as a proposal for a Regulation of the European Parliament and of the Council on information accompanying the transfer of funds.
The EU Sub-Committee on Home Affairs, Heath and Education has considered the proposals six times during the course of the negotiation, most recently on 18 June 2014. The Committee then cleared the proposals from scrutiny, but asked to continue to be kept informed of the progress of negotiations.
Letter from Lord Deighton
In his letter of 4 December 2014, Lord Deighton, the Commercial Secretary to the Treasury confirms that, if the Directive is adopted, the Government, which has strongly supported it throughout the negotiations, may seek to have it annulled on the grounds that it does not have a specific Justice and Home Affairs legal base - something which in the Committee's view it does not need. The Government has attempted a similar challenge on five previous occasions, and has failed each time. The Committee points this out to the Minister, and asks him to justify his policy.