Question to the HM Treasury:

To ask His Majesty's Government, further to the Written Answer by Lord Livermore on 12 February (HL14156), what assessment framework is used to assess the effectiveness of due diligence checks on politically exposed persons undertaken by financial institutions in the United Kingdom.

The FCA is responsible for overseeing compliance by financial institutions with due diligence checks on politically exposed persons. The overall effectiveness of the UK’s anti-money laundering regime is assessed on a regular basis by the Financial Action Task Force (FATF), the global body for standard setting on anti-money laundering and counter terrorist financing (AML/CFT). The methodology used by the FATF for assessments, including of the effectiveness of due diligence checks undertaken by financial institutions, is available online. [1] The next FATF assessment of the UK will take place by 2028.

[1] https://www.fatf-gafi.org/content/dam/fatf-gafi/methodology/FATF-Assessment-Methodology-2022.pdf