Europe’s fight against economic and transnational organised crime: progress or retreat ?

Doc. 9550

20 September 2002

Europe’s fight against economic and transnational organised crime: progress or retreat ?

Recommendation 1507 (2001)

Reply from the Committee of Ministers

adopted at the 808^thmeeting of the Ministers’ Deputies (18 September 2002)

1. The Committee of Ministers took note of the Assembly's review in its Recommendation 1507 (2001) - "Europe's fight against economic and transnational organised crime: progress or retreat?" - of the development of this phenomenon. It congratulates the Assembly on the very comprehensive set of measures it suggests for combating this scourge more effectively.

2. The Committee of Ministers would remind the Assembly that combating transnational organised crime, particularly as a source of funding for international terrorism, is one of the Organisation's top priorities.

3. In this context, the Committee of Ministers held, in December 2001, an exchange of views with the Chair of the Financial Action Task Force on Money Laundering (FATF). This meeting showed, once again, the good co-operation between the Council of Europe and FATF. Co-ordination was even further reinforced by the revision, in April and June last, of the terms of reference of the Select Committee of Experts on the evaluation of anti-money laundering measures¹, with a view, first to bringing them into line with the amended terms of reference of FATF and secondly to extending them with a view to allowing evaluation of applicant states for membership of the Council of Europe which are not members of the FATF.

4. Concerning the other questions raised by the Assembly, the Committee of Ministers wishes to bring further clarifications to the Assembly’s attention. This specific information about the work carried out since the adoption of Recommendation 1507 (2001), will allow the Assembly to note that a large proportion of the measures it suggested have been undertaken and finalised or are under way.

Concerning point i of paragraph 10

The Committee of Ministers would like to recall that there are already several Council of Europe treaties which aim at enhancing international co-operation with regard to tax matters. In the area of judicial co-operation, the first Additional Protocol to the European Convention on Mutual Assistance in Criminal Matters (ETS N° 99) has been ratified by 35 States, whereas the Convention on Mutual Administrative Assistance in Tax Matters (ETS No. 127) has been ratified by 9 States. Although these treaties do not criminalise tax fraud, the Committee of Ministers considers that they provide a sufficient legal basis for Europe-wide legal co-operation.

Concerning point ii of paragraph 10

The Committee of Ministers also recalls that Recommendation Rec(2001)11 concerning guiding principles on the fight against organised crime was adopted on 19 September 2001 at the 765th meeting of the Ministers’ Deputies.

Concerning point iii of paragraph 10

The draft recommendation on common rules against corruption in the funding of political parties and election campaigns has been finalised by the GMC in October 2001 and submitted to the Ministers’ Deputies in May 2002 for adoption. The Rapporteur Group on Legal Co-operation (GR-J) is currently carrying out a preliminary examination of this text. The Committee of Ministers hopes that the draft recommendation will be adopted soon.

Concerning point iv of paragraph 10

At its plenary session in June 2001, the European Committee on Crime Problems (CDPC) set up a reflection group (PC-S-ML) to discuss the advisability of drawing up an additional protocol to the 1990 Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime (ETS No. 141). The group submitted its conclusions to the CDPC at its 51st plenary session in June 2002. The CDPC decided to allow member States more time to study further the conclusions prepared by the PC-S-ML and to resume consideration of the proposals contained therein as soon as possible, following a written consultation of all delegations.

Concerning point v of paragraph 10

Concerning the Assembly’s call for adequate resources for the Select Committee of Experts on the evaluation of anti-money laundering measures (MONEYVAL [PC-R-EV]), the Committee of Ministers would assure the Assembly that it will consider carefully, in the framework of the forthcoming budgetary year, the resources to be assigned to the highly topical activities of the MONEYVAL [PC-R-EV].

Concerning point vi of paragraph 10

The Committee of Ministers notes with satisfaction that the Criminal Law Convention on Corruption (ETS No. 173) has now been ratified by 16 states and signed by 26 others. It entered into force on 1 July 2002 and will be subject to monitoring by GRECO. The Committee of Ministers hopes that the other signatory states will ratify the Convention as soon as possible.

The Civil Law Convention on Corruption (ETS No. 174) has now been ratified by 7 states and signed by 25 others. As 14 ratifications are required for its entry into force, the Committee of Ministers hopes that the signatory states will ratify the Convention as soon as possible.

Concerning point vii of paragraph 10

The Committee of Ministers notes with satisfaction that GRECO has now been joined by 34 states, which is a substantial increase in its membership, compared with the situation prevailing at the time when the Assembly adopted its recommendation. The Committee of Ministers encourages those Council of Europe members states which have not done so to become members of GRECO. Equally, non-member states entitled to join GRECO should consider becoming members.

Concerning point viii of paragraph 10

The Committee of Ministers notes with regret that none of the two conventions referred to by the Assembly concerning environmental liability has so far been ratified by enough states to enter into force. The Convention on civil liability for damage resulting from activities dangerous to the environment (ETS No. 150) has been signed by 9 states, but was ratified by none. The Convention on the protection of the environment through criminal law (ETS No. 172) has been signed by 12 states and ratified by one. The Committee of Ministers considers that these conventions deserve member states’ attention and invites them to examine the possibility of their ratification.

Concerning point ix of paragraph 10

The Committee of Ministers observes that, although the resources of the Octopus project have not been reinforced, it continues to provide useful assistance to central and eastern European states. Other programmes, co-sponsored by the Council of Europe, such as SPAI and SPOC, have successfully attracted further funding.

Concerning point x of paragraph 10

The Committee of Ministers wishes to recall that the text of the Second Additional Protocol to the European Convention on Mutual Assistance in Criminal Matters (ETS No. 182) has been adopted on 11 November 2001. The Protocol has so far been signed by 19 states.

The Committee of Ministers welcomes the Assembly’s suggestion to draw up a special convention on the cross-border application of modern investigative techniques, but considers that at this stage it is premature to start drafting such a text, for two reasons: 1) it has first to be seen how the first protocol to the European Union Mutual Assistance Convention will be implemented in practice; 2) the above-mentioned second protocol (ETS No. 182) already offers, within the context of the Council of Europe, a certain number of cross-border powers, which member states can implement by ratifying the protocol.

Concerning point xi of paragraph 10

The Committee of Ministers remarks that under Article 13 of the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, those member states of the Council of Europe which are not members of the OECD need first to become full participants in the Working Group on Bribery in International Business Transactions before being entitled to ratify the convention.

Concerning point xii of paragraph 10

In this respect, the Committee of Ministers refers to the general observations set out above.

¹. The abbreviation of the Select Committee of Experts on the evaluation of anti-money laundering measures, hitherto PC-R-EV, was changed into “MONEYVAL” when its terms of reference were revised, in June 2002.