Charles Walker – 2016 Parliamentary Question to the HM Treasury
The below Parliamentary question was asked by Charles Walker on 2016-03-08.
To ask Mr Chancellor of the Exchequer, what assessment he has made of the effect of the personal and professional connections of the directors of UK-listed banks with domestic and overseas politicians on the potential risk of money laundering; and if he will make a statement.
Harriett Baldwin
The Government is taking concerns about the Anti-Money Laundering (AML) requirements regarding Politically Exposed Persons (PEPs) seriously. While addressing corrupt PEPs is an important aspect of global efforts to tackle corruption and money laundering, it is essential that this be done proportionately. The current AML regime is governed by the Money Laundering Regulations 2007, which implement the EU’s Third Money Laundering Directive and are based on the global Financial Action Task Force (FATF) standards. We intend to seek views on the transposition of the EU’s Fourth Money Laundering Directive, which addresses domestic PEPs, in our consultation which will be published in the spring.
It is for individual financial institutions to apply a risk-based approach when considering Enhanced Due Diligence measures with regards to PEPs, in accordance with the Regulations and with FATF standards. The Financial Conduct Authority (FCA) is the Treasury-appointed supervisor which oversees financial institutions’ implementation of the Regulations.
