Money Laundering (Hansard, 22 February 1994)

§ Mr. Spellar
To ask the Secretary of State for Foreign and Commonwealth Affairs what action is being taken through the European Union to prevent money laundering, particularly with regard to profits from drug trafficking.

§ Mr. Douglas Hogg
In June 1991, the Council of Economic and Finance Ministers adopted a directive—91/308/EEC—on the prevention of the use of the financial system for the purpose of money laundering. It specifically requires prohibition of money laundering where the money laundered is the proceeds of drug trafficking.
Member states were required to implement the directive by 1 January 1993. Provisions contained in the Criminal Justice Act 1993, together with Her Majesty's Treasury's Money Laundering Regulations 1993, brought United Kingdom legislation into line with the directive.

§ Mr. Spellar
To ask the Secretary of State for Foreign and Commonwealth Affairs what is the current position on international co-operation to prevent money laundering particularly related to the drug traffic.
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§ Mr. Douglas Hogg
The 1988 United Nations convention against illicit traffic in narcotic drugs and psychotropic substances commits all signatories to introduce legislation against laundering the proceeds of drug trafficking, and measures to trace, freeze and confiscate these proceeds. There are currently 96 signatories, including the United Kingdom.
The Council of Europe convention on laundering, search, seizure and confiscation of the proceeds from crime was opened for signature in November 1990. The United Kingdom was the first country to ratify it on 28 September 1992. The purpose of the convention is to facilitate international co-operation in these areas against all types of crime, including drug trafficking.
In addition, the United Kingdom has established bilateral agreements to trace, freeze and confiscate the proceeds of drug trafficking with 29 countries.
The United Kingdom also plays an active role in the financial action task force and holds the presidency this year. The FATF, which consists of all members of the Organisation for Economic Co-operation and Development together with Hong Kong and Singapore, has drawn up 40 recommendations to prevent money laundering. The Commonwealth Heads of Government meeting in Limassol last October agreed, at the Prime Minister's initiative to call for the early implementation of the FATF recommendations throughout the Commonwealth.