Press release – Committees again reject blacklist of states at risk of money laundering – Committee on Economic and Monetary Affairs – Committee on Civil Liberties, Justice and Home Affairs

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• EU needs own process, separate from FATF, to identify possible high-risk countries • Current list excludes countries suspected of tax crimes

The EU should have an autonomous process for judging whether countries are at high-risk of money laundering, say committee MEPs after rejecting for a second time, by 61 votes to 7 with 32 abstentions, a blacklist of countries drawn up by the EU Commission.

The Commission is responsible for producing, under the EU’s Anti-Money Laundering Directive, an inventory of countries thought to be at risk of money laundering, tax evasion and terrorism financing. People and legal entities from blacklisted countries face tougher than usual checks when doing business in the EU. 

An earlier list, drawn up last year — a duplicate of one produced by the international body, the Financial Action Task Force (FATF) — was rejected as too limited by Parliament. 

In Wednesday’s resolution, MEPs from the Economic and Monetary Affairs Committee and the Civil Liberties, Justice and Home Affairs Committee said “the Commission’s process was not sufficiently autonomous” and that the criteria for its list excluded offences giving rise to money laundering, such as tax crimes.

MEPs say the Commission should not be bound by FATF standards when drawing up its own blacklist, which they want to be more expansive and wide-ranging. The Commission says this would require more resources than it has.

The Commission currently identifies eleven countries, including Afghanistan, Iraq, Bosnia and Herzegovina, and Syria, which it judges to be deficient in countering money laundering and terrorist financing. This second update makes a minor change to the previous list by dropping Guyana and adding Ethiopia.

 

Next steps

The resolution now goes to plenary.  If it is supported by more than half of the constituent members of Parliament, the delegated act will be rejected.

Press release – MEPs vote to lower VAT on e-books, aligning them with printed books – Committee on Economic and Monetary Affairs

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EU citizens could pay less for e-books after plans to allow member states to reduce VAT on e-publications were backed in committee on Wednesday.

An EU Commission proposal to enable member states to charge a reduced rate of VAT on e-books, which would bring them into line with VAT levied on printed matter, was backed by the 48 votes to 1 with 2 abstentions in the Economic and Monetary Affairs Committee.

“Our way of reading has changed rapidly over recent years. Now, it makes no sense to apply a double standard whereby an online newspaper is taxed higher than a printed one you buy in a shop. This new directive will give Member States the option to align VAT on digital content with printed matter,” said the rapporteur Tom Vandenkendelaere (EPP, BE).

Currently, e-books have to be taxed at an EU minimum standard rate of 15%, whereas member states are free to charge the reduced rate of at least 5% — and in some cases, even zero-rates — on printed publications.

Music and videos, as well as publications predominantly consisting of music and video content, would continue to be taxed at the standard VAT rate.

Next steps

The proposal will now be voted by Parliament as a whole on May 31st or April 1st.

Perpetrators, not victims, should be shamed for conflict-related sexual violence – UN report

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3 May 2017 – Survivors of sexual violence in war zones need to be recognized as legitimate victims of conflict and terrorism, and not blamed, stigmatized or shamed, the United Nations has said in an annual report to be presented to the Security Council.

Shame and stigma are integral to the logic of sexual violence being employed as a tactic of war or terrorism: aggressors understand that this type of crime can turn victims into outcasts, thus unravelling the family and kinship ties that hold communities together,” according to the latest report of the Secretary-General on conflict-related sexual violence, which is prepared by the Office of the UN Special Representative on the issue.

The report calls on traditional, religious and community leaders to address harmful social norms and help to redirect the stigma of rape from the victims to the perpetrators. If not, the victims may face lethal retaliation, “honour” crimes, suicide, untreated diseases, unsafe abortion, economic exclusion and indigence.

Of particular concern in the report are children born of rape, which “may themselves face a lifetime of marginalization, owing to stigma and uncertain legal status.”

“Unless those who have suffered sexual violence and the children born of rape are reintegrated into their societies and economies, they will remain susceptible to exploitation and recruitment,” the report cautions.

The report calls for national legal and policy frameworks to ensure that survivors of conflict-related sexual violence can benefit from reparations and redress, and have access to urgent support and services, such as sexual and reproductive health care “including measures for the safe termination of unwanted pregnancies.”

Protection from sexual violence and access to sexual and reproductive health care was also pledged at the 2016 World Humanitarian Summit last May.

The annual report reviews 13 conflict settings, four post-conflict countries and two additional situations of concern. It also lists government and non-government actors who are credibly suspected of committing or being responsible for patterns of rape or other forms of sexual violence.

This year, for the first time since the Security Council created the position of the Special Representative on Sexual Violence in Conflict, there has been a delisting. The Ivorian armed forces (FACI) have been removed after the Government adopted measures in accordance with resolution 1960 (2010) and 2106 (2013). These measures include issuing orders through chains of command and adopting codes of conduct prohibiting sexual violence, or investigating alleged incidents.

“The measures taken by the Government of Côte d’Ivoire have resulted in the first delisting pursuant to this mandate, namely that of the Forces armées de Côte d’Ivoire. Continued monitoring and technical assistance will be required to consolidate these gains,” the report noted.

The report is due to be presented to the Security Council on 15 May.

Syria: Reported airstrikes should not derail chance for ‘good news’ at Astana talks, says UN envoy

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3 May 2017 – A senior United Nations mediator today urged the continuation of talks on a Syrian ceasefire being held in the Kazak capital of Astana.

The current round of what has become known as the ‘Astana talks’ ¬between the Syrian conflict parties and led by Russia, Turkey and Iran, kicked off today, but, according to media reports, the Syrian opposition side walked out of the meeting, citing a new barrage of airstrikes in the area they hold.

“The United Nations is very concerned at the reports of escalation in Syria, including, allegedly, reports of air strikes, particularly in this delicate moment in the Astana discussions where actually proposals to de-escalate the conflict are under very serious discussion,” the UN Special Envoy for Syria, Staffan de Mistura, told reporters, following the suspension of the meeting.

“We are calling, therefore, for the immediate investigation and for immediate institution of measures to ensure that now no strikes are taking place and are halted,” Mr. de Mistura said, urging all participants in Astana to “press ahead tomorrow with de-escalation discussions and confidence-building measures.”

Asked if he is confident that the opposition will come back tomorrow, he said that there have been “some incidents produced by one side or the other,” but the important thing is “to make sure that those incidents stop but also do not kill the opportunity for good news related to that.”

Positive outcomes from the Astana talks – which aim to bolster the ceasefire regime brokered by Russia, Turkey and Iran in late December 2016 – would help Mr. de Mistura with his role of facilitating the intra-Syrian talks in Geneva, the latest round of which wrapped up in late March. The discussions are guided by UN Security Council resolution 2254 (2015), focusing on matters of governance, a schedule and process to draft a new constitution and the holding of elections as the basis for a Syrian-led, Syrian-owned process to end the conflict.