Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what information his Department holds on how many people are listed as Politically Exposed Persons.

The Money Laundering Regulations 2017 require businesses within the regulated sector (such as banks) to treat individuals who are entrusted with prominent public functions as PEPs. The Financial Conduct Authority (FCA) provides guidance to businesses within the regulated sector on which customers should be regarded as PEPs under the Money Laundering Regulations, and how a proportionate risk-based based approach to these customers (and their known close associates and family members) should be applied. It is for each business within the regulated sector to decide which of its customers are PEPs, in accordance with this guidance. The Government does not maintain a register of PEPs, and does not hold information on the number of people designated by regulated businesses as PEPs.

The FCA guidance on the treatment of politically exposed persons for anti-money laundering purposes is available at https://www.fca.org.uk/publications/finalised-guidance/fg17-6-treatment-politically-exposed-persons-peps-money-laundering The Financial Services and Markets Act 2023 committed the FCA to conduct a review into financial institutions’ adherence to its guidance on PEPs, and the appropriateness of that guidance. This review is currently underway.