Internal Market
6. Free movement of capital
Issues
- Tracking down terrorism and money laundering
- Problems with consolidated tax and accounting
Moving capital between member states is now, in theory, subject to no restrictions. This means that investments can be made and liquidated across the Union without the need for prior government approval, and there are no limits to capital movements or exchanges between currencies. The introduction of the euro has made it easier to make such capital movements.
Of course governments retain the ability to check and verify movements, to avoid large-scale tax evasion. Moreover, strict controls have been put in place to monitor suspicious transactions which may involve the movement of criminal funds through money laundering. Financial institutions are required to notify authorities of any such transactions. And recently, with the increasing fears of terrorist activity, additional controls have been put in place in an attempt to track funds being used to prepare for or support terrorist attacks.
Quick-jump to other chapters in this dossier :
Chapters
- 1. A vision for the single market of the 21st century
- 2. Barriers to trade
- 3. Free movement of goods
- 4. Free movement of people
- 5. Free movement of services
- 6. Free movement of capital
- 7. Key policy makers and contacts