MIME-Version: 1.0 Content-Location: file:///C:/8C6BC8E8/ARTICLE61H.htm Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii" [ARTICLE 61 H]

FIGHTING CROSS-BORDER CRIME:

UNION COMPETENCES EXTENDED TO FREEZING OF BANK ACCOUNTS, =

AND FINANCIAL ASSETS IN FIGHT AGAINST TERRORISM

 [ARTICLE 61 H]

 

 

AMENDMENT TO: Treaty of Lisbon amending the Treaty on European Union and t= he Treaty establishing the European Community (Lisbon, 13 December 2007)<= /span>

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Policy Area: Treaty on the Functioning of the European Union, Part Three Policies and Internal Actions of the Union, Titl= e IV – Area of Freedom, security and Justice, Chapter 1 General Provisions=

 

Amendment:

Clause= 2, page 1, line 12, after ‘excluding’ insert –

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‘= ;(i) Article 2, paragraph 64, replacement Chapter 1 and Articles 61 to 61I TEC (TFEU) general provisions relating to an area of freedom, security and justice; and

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(ii)’.

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<= st1:City w:st=3D"on">Lisb= on Treaty: =

“= ;64) Article 61 H shall take ov= er Article 60 TEC.

ARTICLE 61 H

Where necessary to achieve the objectives set out in Art= icle 61, as regards preventing and combating terrorism and related activities, t= he European Parliament and the Council, acting by means of regulations in accordance with the ordinary legislative procedure, shall define a framework for administrative measures with regard to capital movements and payments, = such as the freezing of funds, financial assets or economic gains belonging to, = or owned or held by, natural or legal persons, groups or non-State entities.

The Council, on a proposal from the Commission, shall ad= opt measures to implement the framework referred to in the first paragraph.

The acts referred to in this Article shall include neces= sary provisions on legal safeguards.”

 

Consolidated Treaty Article(s):

 “Article 60<= /span>

1. If, in the cases envisaged in Article 301, action by = the Community is deemed necessary, the Council may, in accordance with the procedure provided for in Article 301, take the necessary urgent measures on the movement of capital and on payments as regards the third countries concerned.

2. Without prejudice to Article 297 and as long as the Council has not taken measures pursuant to paragraph 1, a Member State may,= for serious political reasons and on grounds of urgency, take unilateral measur= es against a third country with regard to capital movements and payments. The Commission and the other = Member States shall be inf= ormed of such measures by the date of their entry into force at the latest.<= /o:p>

The Council may, acting by a qualified majority on a proposal from the Commission, decide that the Member State concerned shall amend or abolish such measures. The President of the Council shall inform the European Parliament of any such decision taken by the Coun= cil.”

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Expl= anation:

The present Article 60 TEC belongs to the chapter on Capital and Payments and r= elates to measures against third countries with regard to capital movements and payments. This Article is replaced by Article 61 H. The Lisbon Treaty exten= ds the Union’s competence in terms of= the EU fight against terrorism. This new provision confers on the Union powers to adopt measures limiting the economic activities of “natural or legal persons, grou= ps or non-State entities” considered to be terrorists. The Union is now provided with a clear legal base to impose financial sanctions such as freezing of funds, financial assets or economic gains against terrorists.

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The Council acting by QMV, and the European Parliament through the ordinary legislative procedure (co-decision) acting by means of Regulations will define “a framework for administrative measures with regard to capital movements and payments, such as the freezing of funds, financial assets or economic gains belonging to, or owned or held by, natural or legal persons, groups or non-State entities.” On a proposal from the Commission, the Council w= ill adopt measures to implement such a framework.

 

This Article calls for the adoption of “legal safeguards.” It should be mentioned that there is a UK Declaration attached to the Lisbon Treaty whereby the Government has already stated that it intends to take part in the adoption of all proposals made under Article 61 H of the TFEU, so the UK woul= d not be exempt from this proposal.