Money Laundering (Hansard, 15 October 2001)

§ Peter Bradley
To ask the Chancellor of the Exchequer what assessment he has made of the role of lightly regulated financial regimes overseas in allowing money laundering in support of international drug trafficking, arms running and terrorism. [7440]

§ Ruth Kelly
The Financial Action Task Force, of which the UK is a member, carries out regular assessments on the financial regimes of countries and territories which it suspects may be used for laundering money related to drug trafficking, arms running and terrorism. Those countries and territories which are listed as non-co-operative are required to put in place adequate systems to prevent money laundering before they can be considered for removal from the list. So far four countries and territories have made sufficient improvements that they can be de-listed.

§ Peter Bradley
To ask the Chancellor of the Exchequer what steps he is taking to ensure that the international community acts in concert to eliminate money laundering. [7441]

§ Ruth Kelly
The international standards against money laundering are set by the Financial Action Task Force (FATF). The UK has promoted these standards and sought the maximum international exchange of information and judicial co-operation. We have also pressed the International Monetary Fund to recognise the FATF 40 recommendations as the international standard, which it has now done; and we have promoted a new European Union directive to strengthen community obligations to combat money laundering.

§ Peter Bradley
To ask the Chancellor of the Exchequer which countries he has identified as encouraging facilitating money laundering; and what progress has been made in persuading them to impose proper regulation on their financial regimes. [7442]

§ Ruth Kelly
On 7 September 2001, the Financial Action Task Force, of which the UK is a member, identified 19 non-co-operative countries or territories—Cook Islands, Dominica, Egypt, Grenada, Guatemala, Hungary, Indonesia, Israel, Lebanon, Marshall Islands, Myanmar, Nauru, Nigeria, Niue, Philippines, Russia, St. Kitts and Nevis, St. Vincent and the Grenadines and Ukraine. The FATF is engaged in constructive dialogue with all these countries and territories to improve their compliance with international anti-money laundering standards. Those countries and territories judged to be 845W non-compliant with international anti-money laundering standards are identified as such and put on the list of non-co-operative countries and territories.