§ Harry CohenTo ask the Chancellor of the Exchequer what(a) legislation and (b) other measures he is considering in respect of those countries which fail to meet the OECD's deadline for reform in order to comply with anti-money laundering requirements; and if he will make a statement. [48887]
§ Ruth KellyThe Financial Action Task Force has issued a list of countries that have been found not to be compliant with international anti-money laundering standards. In common with other FATF members, the UK has issued an advisory to all UK financial institutions warning them to pay particular attention to all transactions involving natural or legal persons resident or domiciled in listed jurisdictions. The Joint Money Laundering Steering Group, an industry body issuing good practice advice on money laundering, has issued advice that has been agreed with HM Treasury as appendix D to its guidance notes to the financial sector. This advice is available on the internet at www.jmIsg.org.uk. Where FATF has agreed that further countermeasures should be applied because insufficient progress has been made, the Government have issued further advice to the financial sector and more generally. To date, only Nauru has been subject to such additional countermeasures. The measures agreed by FATF are
(a) stringent requirements for identifying clients are enhancement of advisories, including jurisdiction-specific financial advisories, to financial institutions for identification of the beneficial owners before business relationships are established with individuals or companies from these countries;(b) enhanced relevant reporting mechanisms or systematic reporting of financial transactions on the basis that financial transactions with such countries are more likely to be suspicious;(C) in considering requests for approving the establishment in FATF member countries of subsidiaries or branches or representative offices of banks, taking into account the fact that the relevant bank is from an NCCT;(d) warning non-financial sector businesses that transactions with entities within the NCCTs might run the risk of money laundering.A copy of the further advice on Nauru is also available from the JMLSG and Treasury websites.