2.1.2 The 4^ AML/CFT-Directive of the EU
Through the 4" Directive of the European Parliament and of the Council on the prevention of the use
of the financial system for the purpose of money laundering and terrorist financing’ (the 4™ AMLD),
the EU is implementing the FATF recommendations.
2.1.2.1 The draft 4" AMLD
The enumeration of operational objectives of the draft Directive? (page 7) reads as follows: "Inclusion
of tax crimes in the scope: include an explicit reference to tax crimes as a predicate offence." This is
declared to be one of the best options to improve the existing situation described in the Impact As-
sessment undertaken by the Commission. It remains unexplained why the inclusion of taxes crimes in
the scope of the draft 4" AMLD would improve the existing situation. It will be analysed in chapters 3
and 4 of this thesis whether there are more arguments in favour or against the conclusion made by the
European Commission. But first, it is necessary to go through all the lengthy language of the draft and
the enacted 4^ AMLD on the search for practical guidance on how to implement the FATF recom-
mendations in national law.
Recital No. 9 of the draft 4" AMLD proposed by the Commission reads as follows: “It is important to
expressly highlight that "tax crimes" related to direct and indirect taxes are included in the broad defi-
nition of "criminal activity" under this Directive in line with the revised FATF Recommendations.”
The Parliament has amended this recital in its first reading as follows: “It is important to expressly
highlight that ‘tax crimes’ related to direct and indirect taxes are included in the definition of ‘criminal
activity” under this Directive in line with the revised FATF Recommendations.” Later on, the Par-
liament added even more language: “The European Council of 23 May 2013 stated the need to deal
with tax evasion and fraud and to fight money laundering in a comprehensive manner, both within the
internal market and vis-a-vis non-cooperative third countries and jurisdictions. Agreeing on a defini-
tion of tax crimes is an important step in detecting those crimes, as too is public (sic!) the disclosure of
certain financial information by large companies operating in the Union on a country-by-country basis.
"OJ L 141, 05.06.2015, p. 73 et seq., available in English from http://eur-lex.europa.eu/legal-
content/EN/TXT/PDF/?uri=OJ:L:2015:141:FULL&from=RO, accessed on April 17, 2016.
* COMQ013) 45 final; 2013/0025 (COD), available in English from http://eur-
lex.europa.eu/procedure/EN/2013 25, accessed on April 17, 2016.
? COM(2013) 45 final; 2013/0025 (COD), p. 14.
? Draft report dated November 11, 2013 (COM(2013)0045 — C7-0032/2013 - 2013/0025(COD)), p. 8.
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