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11/9, 12:28 PM (Source: TeleTrader)
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Six EU members call for central supervision over money laundering

Germany, France, Italy, Spain, the Netherlands and Latvia called for a central supervisory body at the EU level to deal with the issue of dirty money flow which has rattled the bloc's banking sector over the past year in a series of scandals involving some of the major lenders in Europe. This, according to the statement's signatories, would also entail combining the existing rules into a single legislation piece, enforced in all members, unlike the current system that allows them to adapt the EU-wide rules to their national legislation.

"Where large financial interests are at stake, there is a risk of national supervisors being influenced directly or indirectly by supervised institutions or interest groups," a joint statement read.

The six nations noted that the role could be assigned to a completely new body or the EU's current watchdog, the European Banking Authority, which was given broader powers to tackle to issue of money laundering months ago in a reform initiated by EU's Finance Commissioner that was quickly described by some observers as insufficient.

Breaking the News / GG