By Henrietta Billings - 26th May 2005
MEPs have backed new EU laws to crack down onmoney laundering and terrorist financing.
The European Parliament adopted rules on Thursday that will force lawyers, estate agents, bankers and other key professions to check the identity of customers, and report suspicions of money laundering or terrorist financing.
Banks, credit companies and other financial institutions will have to verify a customer's identity when they open an account or whenever the customer carries out a transaction of €15,000 or more.
Anonymous accounts, or accounts opened under false names will be banned and Casinos will also have to identify customers gambling more than €2,000.
Charlie McCreevy, the EU's internal market commissioner said. "The fight against money laundering and terrorist financing is a political prioritiy for the EU."
"Not only will the fight against money laundering and terrorist financing benefit from this, but also the integrity and stability of the financial sector."
The new rules, which update exisiting EU legislation on money laundering, now make terrorist financing a criminal offence.
Financial institutions, insurers or lawyers will have to report suspicious transactions to a national "financial intelligence unit" which will process the information and deliver it to the competent authorities.
The scope of the directive also covers the providers of all goods, when payments are made in cash over €15,000.
The new law is expected to be adopted by EU finance ministers meeting on June 7 in Luxembourg.
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