HL Deb 15 February 1994 vol 552 cc14-5WA
Lord Kennet

asked Her Majesty's Government:

What steps they are taking, and along with what other members of the international community, to ensure that "dirty" and "laundered" money from Russia is not given protection by banks under the control of Her Majesty's Government, other European Union governments, or governments closely associated with the European Union.

Lord Henley

The threat posed by money laundering from all sources, including Russia and other parts of the former Soviet Union, is being addressed by the Financial Action Task Force on Money Laundering (FATF). The FATF was established by the 1989 Economic Summit. Membership consists of the governments of 26 of the world's leading financial centres, including all members of the European Union and the OECD. The United Kingdom currently holds the presidency of the FATF.

In addition, the United Kingdom has recently passed two pieces of legislation: the Criminal Justice Act 1993 and the Money Laundering Regulations 1993, which improve our domestic money laundering counter-measures and implement the EC Money Laundering Directive.

Lord Kennet

asked Her Majesty's Government:

Whether the problem of "dirty" or "laundered" money is being dealt with under the auspices of the Conference on Security and Co-operation in Europe and, if so, to what effect.

Lord Henley

The problem of money laundering is not being addressed by the Conference on Security and Co-operation in Europe. It is however being tackled by the Financial Action Task Force on Money Laundering established at the 1989 Economic Summit, the United Nations International Drug Control Programme, the United Nations Commission on Crime Prevention and Criminal Justice, the Council of Europe and by the European Commission.

Lord Kennet

asked Her Majesty's Government:

Whether they have any reason to believe that banks in Luxembourg are currently accepting "dirty" or "laundered" money and, if so, whether they and other members of the European Union will take steps to end these activities.

Lord Henley

Luxembourg, along with all other members of the European Union, has recently introduced legislation to implement the EC Money Laundering Directive. We have no reason to believe that banks in Luxembourg are not complying with this legislation.