An agreement struck by the European Parliament and the EU’s Council of Ministers will see all security companies that transport money and other valuables to banks and businesses across the UK included within the scope of an expanded EU money laundering directive.
‘Transporters of funds’ – in other words, Cash-in-Transit concerns – across the EU will now be forced to comply with the directive’s all-new requirements concerning client identification, record keeping and the reporting of any suspicious transactions.
The latter takes account of concerns voiced over security companies being used to transport the proceeds of all serious crimes, whereas the old law applied only to money linked with drugs offences.
The European Parliament is adamant that security companies must always be in a position to ‘tip off’ police about any ongoing concerns they may have regarding money laundering, and will now be forced into amassing detailed documentation about any given transaction and/or client for subsequent use in judicial court proceedings.
Speaking exclusively to SMT, EU internal market commissioner Frits Bolkestein said: "The new directive will be a vitally important measure in the fight against the financing of terrorism and organised crime, and will set an international benchmark in the ongoing struggle to defeat the money launderers." Formal approval for the directive is expected shortly.
It’s likely that the new directive will have greatest impact among the smaller security companies handling cash for businesses, as the larger concerns – including Securicor Cash Services and Securitas – generally transport money for very obviously respectable clients, including the major banks.
Group 4 spokesperson John Bates told SMT: "For the most part, we provide a service to the banks and major finance houses. As a company, we’d always shy away from dealing with suspect individuals and those whose legitimacy is in any way questionable."
