Written question asked by Lord Hague of Richmond (Conservative) on Tuesday, 31 October 2006, in the House of Commons. It was due for an answer on Thursday, 2 November 2006. It was answered by Stephen Timms (Labour) on Tuesday, 7 November 2006 on behalf of the Treasury.

Iran

Question: To ask the Chancellor of the Exchequer what advice the Government gives to UK banks on financial transactions with the Islamic Republic of Iran; and if he will make a statement.

Answer: The UK Money Laundering Regulations require all financial institutions to operate effective controls and due diligence in order to forestall and prevent money laundering and terrorist finance in their dealings with individuals and institutions in all countries—including Iran.Comprehensive guidance, developed by industry and approved by the Treasury, is provided to all financial institutions that sets out the key safeguards necessary to meet these requirements. The guidance explicitly endorses a risk-based approach by firms that recognises that the threat of financial abuse varies across customers, jurisdictions, products and delivery channels.This guidance is augmented by liaison between the financial sector, law enforcement bodies, and financial supervisors in order to ensure that anti-money laundering and counter terrorist finance efforts continue to target changing financial vulnerabilities.

Secondary information