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Can you summarize EU 2018/1673?
European Union - Directives > Directive (EU) 2018/1673 of the European Parliament and of the Council of 23 October 2018 on combating money laundering by criminal law
Short Summary
Directive (EU) 2018/1673 of the European Parliament and of the Council aims to combat money laundering by means of criminal law. It applies to the Member States of the European Union. The directive recognizes that money laundering, financing of terrorism, and organized crime pose significant problems at the Union level, damaging the integrity, stability, and reputation of the financial sector. The directive aims to complement and reinforce the application of Directive (EU) 2015/849 by enabling more efficient and swifter cross-border cooperation between competent authorities. The directive emphasizes the importance of international coordination and cooperation in combating money laundering and ensures that the measures adopted by the Union are compatible with and at least as stringent as actions undertaken in international fora. The directive also aligns Union legal acts with the International Standards on Combating Money Laundering and the Financing of Terrorism and Proliferation adopted by the Financial Action Task Force. It establishes uniform definitions of criminal activities that constitute predicate offences for money laundering and requires Member States to ensure that these offences are considered predicate offences for money laundering. The directive also addresses the risks and challenges posed by the use of virtual currencies in money laundering. It allows Member States to consider more severe penalties for money laundering offences committed by public office holders and includes tax crimes relating to direct and indirect taxes within the definition of criminal activity. The directive emphasizes the importance of international cooperation in criminal proceedings regarding money laundering and encourages intensified cooperation with third countries. It also provides for the freezing and confiscation of instrumentalities and proceeds of crime and establishes jurisdiction for investigating and prosecuting money laundering offences. The directive requires Member States to provide effective investigative tools and imposes liability on legal persons for money laundering offences committed for their benefit. Overall, the directive aims to subject money laundering in all Member States to effective, proportionate, and dissuasive criminal penalties.
Whom does it apply to?
Member States of the European Union
What does it govern?
Combating money laundering by criminal law
What are exemptions?
This Directive does not apply to money laundering involving property derived from criminal offences affecting the Unions financial interests, which is subject to specific rules as laid down in Directive (EU) 2017/1371.
What are the Penalties?
Member States shall take the necessary measures to ensure that the offences referred to in Articles 3 and 4 are punishable by effective, proportionate and dissuasive criminal penalties. Member States shall take the necessary measures to ensure that the offences referred to in Article 3(1) and (5) are punishable by a maximum term of imprisonment of at least four years.
Jurisdiction
European Union