Commission strengthens transparency rules to tackle terrorism financing, tax avoidance and money laundering

05 July 2016

The Commission adopted a proposal to further reinforce EU rules on anti-money laundering to counter terrorist financing and increase transparency about who really owns companies and trusts.

This Commission proposal is the first initiative to implement the Action Plan for strengthening the fight against terrorist financingof February 2016 and is also part of a broader drive to boost tax transparency and tackle tax abuse. This is why we are, in parallel, also presenting a Communication that responds to the recent Panama Papers revelations.

First Vice-President Frans Timmermans said "Today's proposals will help national authorities to track down people who hide their finances in order to commit crimes such as terrorism. Member States will be able to get and share vital information about who really owns companies or trusts, who is dealing in online currencies, and who is using pre-paid cards. Making public the information on who is behind companies and trusts should also be a strong deterrent for potential tax-evaders."

Věra Jourová, the EU's Commissioner for Justice, Consumers and Gender Equality said:

"Today, we are putting forward stricter transparency rules to cut terrorist financing and step up our fight against money laundering and tax avoidance. The update of the Fourth Anti-Money Laundering Directive will prevent any loopholes in Europe for terrorists, criminals or anyone trying to play with taxation rules to finance their activities. Better cooperation to fight these issues will make the difference."  

The adoption of the Fourth Anti-Money Laundering Package in May 2015 marked a significant step towards improving effectiveness of the EU's efforts to combat the laundering of money from criminal activities and to counter the financing of terrorist activities. It sets high standards to prevent money laundering, such as the requirement for Member States to put in place national registers of beneficial owners of companies and some trusts. Member States have committed to implement the package more swiftly than initially planned, at the latest at the end of 2016.   

Countering terrorism financing

As announced in the Action Plan for strengthening the fight against terrorist financing, the Commission is proposing changes to prevent the financial system from being used for funding terrorist activities:

Stricter transparency rules to prevent tax avoidance and money laundering

Today’s proposal will reinforce the measures introduced by the Fourth Anti-Money Laundering with the following changes:

Full press release

Communication: Fair Taxation: The Commission sets out next steps to increase tax transparency and tackle tax abuse

Remarks by Commissioner Moscovici


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