Asked by: Charles Walker (Conservative - Broxbourne)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what estimate his Department has made of the number of its senior civil servants who will potentially fall under the provisions of the 4th EU Money Laundering Directive, 2015/849; and what assessment he has made of (a) whether the Financial Conduct Authority and (b) which of his Department's other agencies and public bodies will potentially be classed as holding a prominent public function for the purposes of that directive.
Answered by Harriett Baldwin
Under the Fourth Anti-Money Laundering Directive, which will be transposed into national law by June 2017, a politically exposed person is one who has been entrusted with a prominent public function domestically or by a foreign country. This would include some senior civil servants, such as ambassadors and chargés d'affaires. The Government's view is that the Directive permits a risk-based approach to the identification of whether an individual is a politically exposed person and, when identified, the Directive enables the application of different degrees of enhanced measures to reflect the risks posed. The Government will be setting out this view in a consultation which will be published shortly.
The changes proposed under the Directive should not prevent any individual in this category from gaining or maintaining access to financial services. The Treasury regularly raises these issues with financial institutions and the regulator, and we encourage financial institutions to take a proportionate, risk-based approach when applying these measures.
Asked by: Charles Walker (Conservative - Broxbourne)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what guidance he has given to the Cabinet Office on the potential implications of the application of the EU 4th Money Laundering Directive, 2015/849, to senior civil servants; and if he will make a statement.
Answered by Harriett Baldwin
Under the Fourth Anti-Money Laundering Directive, which will be transposed into national law by June 2017, a politically exposed person is one who has been entrusted with a prominent public function domestically or by a foreign country. The Government's view is that the Directive permits a risk-based approach to the identification of whether an individual is a politically exposed person and, when identified, the Directive enables the application of different degrees of enhanced measures to reflect the risks posed. We will be setting out this view in our consultation which will be published shortly.
This change should not prevent any individual in this category from gaining or maintaining access to financial services. I regularly raise these issues with financial institutions and the regulator and we encourage financial institutions to take a proportionate risk-based approach when applying these measures.
Asked by: Charles Walker (Conservative - Broxbourne)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what guidance he has given to the Home Secretary on the potential implications of the application of the EU 4th Money Laundering Directive, 2015/849, to senior police officers; and if he will make a statement.
Answered by Harriett Baldwin
Under the Fourth Anti-Money Laundering Directive, which will be transposed into national law by June 2017, a politically exposed person is one who has been entrusted with a prominent public function domestically or by a foreign country. The Government's view is that the Directive permits a risk-based approach to the identification of whether an individual is a politically exposed person and, when identified, the Directive enables the application of different degrees of enhanced measures to reflect the risks posed. We will be setting out this view in our consultation which will be published shortly.
This change should not prevent any individual in this category from gaining or maintaining access to financial services. I regularly raise these issues with financial institutions and the regulator and we encourage financial institutions to take a proportionate risk-based approach when applying these measures.
Asked by: Charles Walker (Conservative - Broxbourne)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what guidance he has given to the Secretary of State for Communities and Local Government on the potential implications of the application of the EU 4th Money Laundering Directive, 2015/849, to senior office-holders in local government; and if he will make a statement.
Answered by Harriett Baldwin
Under the Fourth Anti-Money Laundering Directive, which will be transposed into national law by June 2017, a politically exposed person is one who has been entrusted with a prominent public function domestically or by a foreign country. The Government's view is that the Directive permits a risk-based approach to the identification of whether an individual is a politically exposed person and, when identified, the Directive enables the application of different degrees of enhanced measures to reflect the risks posed. We will be setting out this view in our consultation which will be published shortly.
This change should not prevent any individual in this category from gaining or maintaining access to financial services. I regularly raise these issues with financial institutions and the regulator and we encourage financial institutions to take a proportionate risk-based approach when applying these measures.
Asked by: Charles Walker (Conservative - Broxbourne)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what guidance he has given to the Secretary of State for Justice on the potential implications of the application of the EU 4th Money Laundering Directive, 2015/849, to judges; and if he will make a statement.
Answered by Harriett Baldwin
Under the Fourth Anti-Money Laundering Directive, which will be transposed into national law by June 2017, a politically exposed person is one who has been entrusted with a prominent public function domestically or by a foreign country. The Government's view is that the Directive permits a risk-based approach to the identification of whether an individual is a politically exposed person and, when identified, the Directive enables the application of different degrees of enhanced measures to reflect the risks posed. We will be setting out this view in our consultation which will be published shortly.
This change should not prevent any individual in this category from gaining or maintaining access to financial services. I regularly raise these issues with financial institutions and the regulator and we encourage financial institutions to take a proportionate risk-based approach when applying these measures.
Asked by: Charles Walker (Conservative - Broxbourne)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what guidance he has given to the Secretary of State for Defence on the potential implications of the application of the EU 4th Money Laundering Directive, 2015/849, to senior military officers; and if he will make a statement.
Answered by Harriett Baldwin
Under the Fourth Anti-Money Laundering Directive, which will be transposed into national law by June 2017, a politically exposed person is one who has been entrusted with a prominent public function domestically or by a foreign country. The Government's view is that the Directive permits a risk-based approach to the identification of whether an individual is a politically exposed person and, when identified, the Directive enables the application of different degrees of enhanced measures to reflect the risks posed. We will be setting out this view in our consultation which will be published shortly.
This change should not prevent any individual in this category from gaining or maintaining access to financial services. I regularly raise these issues with financial institutions and the regulator and we encourage financial institutions to take a proportionate risk-based approach when applying these measures.
Asked by: Charles Walker (Conservative - Broxbourne)
Question to the HM Treasury:
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.
Answered by 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.
Asked by: Charles Walker (Conservative - Broxbourne)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, if he will make it his policy to consider the board members of UK banks as politically exposed persons for the purposes of the Fourth Money Laundering Directive; and if he will make a statement.
Answered by 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.
Asked by: Charles Walker (Conservative - Broxbourne)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what discussions he has had with the FCA on its making guidance available to banks which are seeking to comply with money laundering rules in relation to domestic politically-exposed persons in a proportionate way; and if he will make a statement.
Answered by Harriett Baldwin
The Government is taking concerns about the Anti-Money Laundering 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. Treasury ministers have regular discussions with banks and the FCA, including on ensuring that guidance is clear and appropriate.
Asked by: Charles Walker (Conservative - Broxbourne)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what discussions he has had with the HSBC Board on its practice of (a) refusing and (b) withdrawing bank accounts from UK citizens who it identifies as being politically exposed persons; and if he will make a statement.
Answered by Harriett Baldwin
Under the UK’s Money Laundering Regulations 2007, the meaning of a politically exposed person does not include an individual who is or has been entrusted with a prominent public function by the UK. The Fourth Money Laundering Directive, which will be transposed into national law by June 2017, makes no distinction between the prominent functions by the UK and third countries. However, the Government's view is that the Directive permits a risk-based approach to the identification of whether an individual is a politically exposed person and, when identified, the Directive enables the application of different degrees of enhanced measures to reflect the risks posed. We will be setting out this view in our consultation which will be published shortly.
This change should not prevent any Member of this House, or any other individual in this category, from gaining or maintaining a UK bank account. I regularly raise these issues with banks and the regulator and we encourage the banks to implement these measures domestically in the most risk-based manner possible.