§ Mr. WyattTo ask the Chancellor of the Exchequer what measures he will take to stop money laundering from the developed world through the City of London. [157659]
§ Miss Melanie JohnsonThe United Kingdom already has comprehensive provisions in place to prevent money laundering, irrespective of where the funds originated. Money laundering is a serious criminal offence in the UK and attracts penalties of up to 14 years imprisonment—among the highest in the world. The UK anti-money laundering regime has been praised by the financial action taskforce as a model for other countries. Nevertheless, the Government are committed to implementing further measures to strengthen the laws against money laundering.
The Proceeds of Crime Bill, published in draft for consultation in March, will create a new criminal assets recovery agency, update the criminal laws on money laundering and permit the restraint of realisable property at the beginning of an investigation, an earlier stage than is possible at present. The Bill will also make it an offence for employees in the regulated sector to fail to disclose a transaction to the authorities when they knew or suspected or had reasonable grounds to suspect that it represented the proceeds of crime.
The Financial Services and Markets Act 2000 will give the FSA powers both to issue money laundering rules and to prosecute for breaches of the Money Laundering Regulations 1993.
Furthermore, the UK has taken an active role in updating the EU money laundering directive. The directive will be updated to expand the range of predicate offences giving rise to an obligation to report suspicions and will impose reporting obligations on lawyers and accountants. It will thereby ensure that the minimum standards applicable in other member states are brought close to the tough standards already applied in the UK.