End of Life Vehicles Directive

Every year, motor vehicles which have reached the end of their useful lives create between 8 and 9 million tonnes of waste in the European Union.

As such it aims at: With these targets set, the directive involves four major stakeholders, the producer, the recycling industry, the last holder and the authorities.

In 2018 the EC published a study Assessment of ELV Directive with emphasis on the end of life vehicles of unknown whereabouts.

This significant policy change aims to address growing concerns about financial transparency and the prevention of money laundering within the vehicle export sector.

The underlying rationale for this new regulation is to establish a more comprehensive framework for tracking and verifying the flow of funds associated with vehicle exports.

By mandating that buyers pay the full price of a vehicle upfront, authorities seek to ensure that the entire transaction is documented and transparent, leaving no room for financial opacity.

This shift in policy reflects a broader European effort to bolster the integrity of international trade, especially in sectors prone to misuse for illicit financial activities.

Historically, certain export transactions have been exploited as a channel for money laundering, where partial or non-transparent payments could obscure the true financial exchange.

To counteract such risks, the new legislation will require that payments be made in full, allowing authorities to monitor the entirety of the transaction.

This requirement is part of a larger strategy to ensure that the real income generated from vehicle exports is accurately reported and traceable, providing greater oversight of cross-border financial flows.

For businesses involved in the vehicle export sector, this change underscores the importance of aligning with anti-money laundering (AML) protocols.

For buyers, the legislation introduces a clearer, more regulated environment for international vehicle purchases, ensuring that all parties comply with stringent financial reporting standards.

This measure aligns with the EU’s broader commitment to combat financial crime and protect the integrity of the single market, ensuring that all transactions, regardless of the industry, contribute to a transparent and lawful economic environment.

Since technology is subject to constant change, the Annex II is revised on a regular basis to account for new technical developments making certain materials in specific applications no longer necessary or allow for reduction of thresholds.

Materials and components, which are either classified hazardous and thus shall not be released to the environment or should be dismantled to facilitate recycling, need to be coded for easier identification by treatment facilities.

Fund money is not committed to vehicle return, but either used to finance other recycling projects or is even sunk in government budgets without any environmental impact or benefit.