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Green MEPs Call For Stricter Anti-Corruption Measures

By Matt Thompson · 2022-03-08 21:02:32 +0000 ·

London - The European Union should take strong measures to combat the illicit assets of Russian oligarchs and accelerate its enforcement against unlawful financial flows, according to a set of proposals released Tuesday by the European Parliament's Green bloc.

The EU's executive branch should draw up proposals to create a beneficial ownership registry for all kinds of assets, including real estate, luxury vehicles and works of art, the proposals said.

"Tax havens in the EU and European intermediaries such as lawyers, real estate agents, etc. have actively helped oligarchs to launder money, avoid taxes and hide their wealth," the document said. It also said 21 EU countries still have not correctly transposed the EU's anti-money-laundering directive into their laws and that governments are failing to fully implement international standards regarding the exchange of tax information.

The Russian invasion of Ukraine sparked the Green bloc to come forward with a series of demands and proposals based on long-standing concerns. Most of the proposals listed in the documents center around strengthening existing policy proposals, proper enforcement of existing law and government access to information on the financial activities taking place in or through their jurisdictions.

The Greens also called on the commission to encourage EU members to cease information sharing with the Russian government due to concerns about its adherence to international democratic norms.

"All automatic exchanges of tax information with the Russian authorities needs to stop now, due to serious rule-of-law concerns," the document said. "EU member states need to finally transpose and fully implement all European and international standards regarding money laundering and exchange of tax information."

A spokesperson for the Greens and the European Free Alliance parliamentary group, who wished to remain anonymous, told Law360 that following the economic sanctions imposed on Russia, it is crucial to start tackling the issue of regime crony illicit offshore wealth.

"We must ensure that we take all the necessary measures to also make sure the EU is not being used as a safe haven for these oligarchs, bringing tax evasion to an end," the spokesperson said.

The European Commission didn't immediately respond to a request for comment on the Greens' proposals.

--Editing by Neil Cohen.

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