§ Lord Vinsonasked Her Majesty's Government:
Whether they will request the Financial Services Authority to restrict its money laundering procedures to financial transactions above a specified amount. [HL4215]
§ The Parliamentary Under-Secretary of State, Department for Culture, Media and Sport (Lord McIntosh of Haringey)The identification procedures required by the Money Laundering Regulations 2003 and corresponding FSA rules are in line with our obligations under the European Money Laundering Directives. To restrict money laundering procedures to financial transactions above a specified amount would not be consistent with our obligations under EC law.
§ Lord Vinsonasked Her Majesty's Government:
Whether there are any recorded instances of money laundering occurring through a pensioner transferring pension assets from one authorised pension provider to another. [HL4216]
§ Lord McIntosh of HaringeyLonger-term assets such as insurance products and pensions can be used to attempt to disguise the proceeds of crime. The National Criminal Intelligence Service has received a number of reports of suspected money laundering from pension providers regarding customer activity. Where appropriate these are passed to law enforcement agencies for investigation.
§ Lord Vinsonasked Her Majesty's Government:
Why it is necessary for the Financial Services Authority's money laundering regulations to require detailed personal identity verification for pensioners transferring their pension from one authorised pension provider to another, when such details have already been given to the original provider. [HL4217]
§ Lord McIntosh of HaringeyThe Money Laundering Regulations 2003 and corresponding Financial Services Authority Rules require financial services firms to verify their customers' identity. This obligation does not apply to long-term contracts of insurance in connection with pension schemes that meet certain criteria. In many situations, either there is 35WA an exemption from the obligation to identify or industry guidance provides for reliance on the identification done by the original provider.