Question to the Foreign, Commonwealth & Development Office:

To ask the Secretary of State for Foreign and Commonwealth Affairs, what power the Government has to investigate private banks registered in British Overseas Territories for alleged money laundering.

The Overseas Territories are separate jurisdictions with their own democratically elected Governments, Constitutions and laws under which Territory authorities are responsible for the regulation of banks. It is primarily for the law enforcement authorities of the Territories to deal with any allegations brought to them. UK law enforcement authorities would only become involved if the allegations involved criminality in the United Kingdom.

The Caribbean Overseas Territories and Bermuda are active members of the Caribbean Financial Action Task Force, one of Financial Action Task Force associated bodies. They are subject to evaluations of their anti-money laundering regimes through this body and these assessments are publicly available.

The UK and Territory Governments have a shared agenda on the application of high international standards for financial regulation. Most recently at the 2014 Joint Ministerial Council Territory Leaders agreed to work with the UK in raising international standards to tackle money laundering, tax evasion, illicit finance and corruption.