Tomorrow is the last day of the consultation [1] by the AMLA [2] on the format for reporting suspicions to the national FIUs.

The proposal put forward by the AMLA contains a number of noteworthy elements. Some of these:

Are OFAC sanctions applicable in the EU?
The AMLA appears to take the view that European companies must comply with US sanctions, as it refers to the OFAC sanctions list in relation to predicate offences [3].

The US uses OFAC sanctions as a political weapon to disadvantage legitimate individuals and organisations in the EU, such as officials of the International Criminal Court (ICC) at the Hague, the internet company A/I in Italy and the non-profit organisation HateAid. Recently Public Spaces and a group of other nonprofit organisations has sent an open letter to the Dutch government, ‘Letter to the House of Representatives: protect European organisations from foreign sanctions pressure‘ [4]. The US sanctions against individuals do not apply to companies in the EU, particularly if they would infringe the fundamental rights of European citizens

Are religious sects criminal?
It is also noteworthy that the AMLA includes ‘religious sect’ in the list of suspected criminal offences [3], raising the question of whether being or belonging to a ‘religious sect’ is a criminal offence and what is meant by this (anything that is not Christian?).

PEPs unjustly accused
Most shocking is that the AMLA classifies the category of politically exposed persons (PEPs) under ‘adverse information’ [5], whilst most PEPs (such as Members of the House of Representatives, their parents and children) are not criminals. Even if the European legislator has decided that PEPs all pose an increased risk of criminality (which, in my view, is legislative nonsense), that does not mean it is correct to include that classification under ‘adverse information’.

Final remark

The proposal raises further questions. It is to be hoped that there are organisations which have the opportunity to comment on it.

Notes:

[1] Consultation on the draft ITS on the format for reporting suspicions and providing transaction records, announcement.
[2] Authority for Countering Money Laundering and Financing of Terrorism.
[3] DP0018, Possible predicate offence type.
[4] ‘Brief aan de Tweede Kamer: bescherm Europese organisaties tegen buitenlandse sanctiedruk’, article, letter (both in Dutch).
[5] DP0405, DP0406, DP0407, DP0408.