§ Mr. RedmondTo ask the Secretary of State for Trade and Industry if he will introduce legislation to provide that anyone, including financial institutions, who knowingly conceals the origins of illegal profits, will face a fine or imprisonment.
§ Mr. WaddingtonI have been asked to reply.
It is already a serious offence to launder the proceeds of drug trafficking and terrorist funds, and there are extensive powers both to enable the police and customs officers to investigate such activities and to require banks and other financial institutions to report suspicious transactions to those authorities. The powers to combat drug money laundering have been further strengthened by the Criminal Justice (International Co-operation) Act 1990, which also contains provisions to prevent drug traffickers evading the controls on money laundering by importing or exporting their proceeds in the form of cash.
It is also an offence to handle stolen goods or the proceeds of stolen goods; and those who do so may be held to have acted as accessories, conspirators or aiders and abetters in relation to the crime. Additionally, part VI cif the Criminal Justice Act 1988 frees banks and others from obligations of confidentiality when they report voluntarily transactions involving funds which they suspect are derived from criminal activity.