EU tells 15 states to apply money-laundering rules
BRUSSELS, July 18 (Reuters) - Over half of the European Union's members -- including top money centres Germany and France -- have been told to apply the bloc's updated rules that crack down on terrorist financing or face legal action.
The EU's revised anti money-laundering rules aim to step up the fight against terrorist funding and cut off avenues for criminal gangs to process illegal earnings.
EU Internal Market Commissioner Charlie McCreevy has written to governments in Belgium, Ireland, Latvia, Malta, Slovakia, Sweden, Spain, Austria, the Czech Republic, Germany, France, Greece, Luxembourg, the Netherlands and Poland asking them to apply the rules that came into force on Dec. 15, 2007.
"The fight against money laundering and terrorist financing is a priority for both the Commission and the member states," McCreevy said in his letter.
Banks have told McCreevy they find it difficult to apply the new rules if all member states have not formally adopted them into law.
"In these circumstances, the Commission has no other option but to proceed with legal actions ... against those member states which have not implemented the directive, and to do so in as expeditious a manner as possible," McCreevy said.
Legal action would involve a three-stage process ending up in the European Court of Justice, which has powers to fine countries for not enforcing EU law. (Reporting by Huw Jones; Editing by Dale Hudson and Quentin Bryar)
