EC crackdown on organised crime

The European Commission today outlined a tough new strategy to crack down on organised financial crime.

The action plan urges EU member states to adopt new measures to make it more difficult for criminals to spend the proceeds of crime without detection.

It calls for countries to work together, using financial investigative techniques, in a bid to combat money laundering.

The EU’s single market commissioner Frits Bolkestein said: “Financial crime is a globalised industry. It does not stop at borders and if there are weak links, criminals will exploit them.

“Through the financial services action plan, we are strengthening Europe’s regulatory defences against those who try to rip off investors.

“But we also need an effective European and international crackdown, including further legislation where necessary, to stop ill-gotten gains from organised crime going through an ever more sophisticated financial system.”

Meanwhile, a Commission report released today calls on member states to step up the fight against VAT fraud.

The report seeks greater administrative cooperation between EU countries to close the loophole which sees some rogue traders avoid paying VAT by importing goods from other countries under the pretence that they will then be exported elsewhere.

It is estimated that some EU countries lose up to 10% of net VAT receipts to fraud.