NEWS

MEPs approved the commission's conclusions, which include a financial police force and more European surveillance to prevent money laundering.

The European police force would work under the supervision of Europol and would have the power to carry out cross-border financial investigations, according to the conclusions of the commission on financial crimes.

The report also calls for the establishment of a European control body that is responsible for combating money laundering and terrorist financing, and the current coordination of the Member States is not "sufficient to meet the challenges of the sector."

Context

The text of the special commission indicates that the income from criminal activities in the Union amounts to EUR 110 billion per year, which is equivalent to 1% of the total GDP of the Union.

The report is published following the scandals in recent years about money laundering, which involved European banks, and the revelations of investigative journalists, such as LuxLeaks and the Panama papers, on cases of tax evasion and avoidance.

One of those responsible for the recommendations in the European Parliament, the Czech MEP Luděk Niedermayer of the European People's Party, points out that money laundering always has an international dimension. "Due to the lack of cooperation and coordination between the authorities inside and outside the Member States, these cases were not prevented or treated during their initial phase, nor were they investigated properly. It is not usually clear who should take the initiative, "he explains.

"This has led to a multitude of legislative and control loopholes and blind spots," acknowledges another of those in charge, Danish Socialist MEP Jeppe Kofod. "This is what we have explained in our work, and for what we propose suggestions that can manage it," he adds.

The EU for sale?

The report criticizes tax privileges, the so-called "gold visas", which 18 member states offer and that can favor the entry of rich criminals into the European Union.

It is estimated that over 100,000 visas and 6,000 passports have been sold in the last decade, especially to Russian citizens and citizens of other countries under Russian influence, in exchange for financial investment in the EU.

Permits do not only imply tax privileges for the beneficiaries. They also give access to free movement, which can be used to launder money and evade taxes.

Shocking conclusions

After a year of investigations, the commission on Financial Crimes concludes. "The sad thing is that Europe has a systematic problem with money laundering and tax avoidance and evasion," says Kofod. "We have successfully created the most attractive and rich domestic market in the world, with free movement of capital and services movement. But we still lack effective cooperation in cross-border supervision, investigation and application."

When asked about the most "shocking" finding, Niedermayer refers to the amount of money laundered, the banks involved and how to transpose European legislation by some Member States: "Another of the shocking conclusions is, unfortunately, the resistance of some Member States (at the Ecofin meetings) to take measures, which oppose with strong justifications and affirm that these practices would bring benefits to European society. I speak above all of the definitive VAT regime, the common consolidated tax base of the corporate tax and other initiatives that are stagnant or have been rejected, such as digital taxation, by the Council. "

Next steps

The plenary of Parliament approved its own initiative report on Tuesday, March 26 in Strasbourg.