EU launches infringement action against Lithuania over money laundering rules

VILNIUS - The European Commission has launched infringement proceedings against Lithuania and three other European Union member states for failing to correctly transpose anti-money laundering rules into national law.

According to a Commission statement issued on Thursday, the directive defines criminal offences and sanctions for money laundering, facilitates police and judicial cooperation among European Union member states, and seeks to prevent criminals from exploiting legal loopholes across the European Union.

Under the directive, money laundering can be prosecuted without a prior conviction for the underlying predicate offence. It also provides for criminal liability for self-laundering and sets out circumstances under which stricter penalties may be imposed.

Lithuania, Cyprus, Poland and Slovenia have two months to respond and address the shortcomings identified by the Commission. If they fail to provide a satisfactory response, the Commission may issue a reasoned opinion.

Should a member state fail to comply with European Union law, the Commission may decide to refer the case to the Court of Justice of the European Union.