The Council of the Bars and Law Societies of Europe (CCBE) launched an EU-wide survey on the impact of the second money laundering directive this week, as it stepped up its campaign against European Commission proposals for a third directive.

The survey of bars and law societies in the 25 EU member states will look at the practical problems with the existing regime and whether any lawyers have been prosecuted and convicted. It will also look at the number of reports made, what triggers them and whether guidelines for lawyers have been produced.


Jonathan Goldsmith, CCBE secretary-general, said: 'It appears as if the commission and other institutions are proceeding with a third directive without any proper evaluation of the impact of the second directive. The institutions might take notice of the difficulties which the [second] directive has caused.'


Goldsmith: no proper evaluation

Robin Booth, chairman of the Law Society's money laundering task force, said UK lawyers already faced a greater burden than many of their European counterparts.

Mr Booth said: 'Although the UK implemented the second directive in the Proceeds of Crime Act 2002 (POCA), the government went way beyond that.'


A Home Office spokeswoman said the government was listening to the Law Society's concerns, pointing out that the Serious Organised Crime and Police Bill contained amendments addressing some of those worries. The changes include introducing a new defence so that there will be no requirement to report where conduct overseas, which would be a crime here, is legal under the local law.


The spokeswoman said: 'These changes will help reduce the regulatory burden without weakening our defences against money laundering.'