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Money Laundering in the EC

NCJ Number
132774
Journal
Money Laundering Law Report Volume: 1 Issue: 8 Dated: (March 1991) Pages: 1,4,5
Author(s)
P S Haar
Date Published
1991
Length
3 pages
Annotation
In response to several recent scandals, Switzerland and Luxembourg have passed legislation aimed at preventing tax fraud and money laundering. In addition, the European Commission (EC) has drafted directives to oblige financial institutions to report suspicious deals to national authorities and to criminalize money-laundering activities related to drugs, terrorism, and other serious crimes.
Abstract
Newly passed legislation in Switzerland limits bank secrecy, which heretofore allowed banks to refuse investigations by U.S. tax authorities and prohibited negligent and intention violations of confidence. Now, the exercise of due care in reporting suspicious transactions is required by the legislation as well as by the Federal Banking Association. In Luxembourg, a 1989 decree established strict bank secrecy rules that precluded the passing of information on bank accounts; that secrecy was limited when the country adopted a law criminalizing money laundering. It remains to be seen how the EC initiatives will further affect banking secrecy in these two countries.