Written question asked by Nick Ainger (Labour) on Wednesday, 15 July 2009, in the House of Commons. It was due for an answer on Tuesday, 21 July 2009. It was answered by Sarah McCarthy-Fry (Labour) on Tuesday, 21 July 2009 on behalf of the Treasury.

Financial Action Task Force

Question: To ask the Chancellor of the Exchequer what progress is being made by the Financial Action Task Force of the Organisation for Economic Co-operation and Development in its work on effective due diligence by banks and the ending of secrecy on beneficial ownership of companies and trusts; and if he will make a statement.

Answer: The Financial Action Task Force (FATF) has issued 40+9 recommendations on the prevention of money laundering and terrorist financing. These require countries to ensure that banks conduct due diligence on their customers, and that the beneficial ownership information of companies and trusts is collected and accessible to competent authorities. The FATF is currently preparing for its fourth round of assessment of countries against the standards, which will focus on how effectively the measures work in practice.

Secondary information