§ Mr. CohenTo ask the Chancellor of the Exchequer what arrangements are in place to require those involved with securities and investments to disclose suspicious activity to law enforcers; and if he will make a statement. [45415]
§ Mrs. LiddellThe legislation dealing with money laundering provides for suspicious transactions to be reported to a constable (usually in practice the Economic Crime Unit of the National Criminal Intelligence Service) and is a universal duty. It applies to those involved with securities and investments in the same way as to any other person and whether in the course of business or otherwise. Failure to make a report may result in the commission of a money laundering offence, for which the maximum penalty is fourteen years' imprisonment and an unlimited fine.
In addition, those dealing with securities and investments are subject to the provisions of the Money Laundering Regulations 1993. These require that firms carrying on such business must have internal reporting procedures which ensure that, where knowledge or suspicion arises that a person is engaged in money laundering, this is disclosed to a constable. This is a positive duty for which failure to comply can lead, on conviction on indictment, to two years' imprisonment and/or a fine.