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Money Laundering: Politically Exposed Persons

Answer

The Money Laundering and Terrorist Financing (Amendment) Regulations 2023 came into force on 10 January 2024. All businesses within scope of the Money Laundering Regulations are now required to ensure that their starting point for assessing the risk posed by domestic politically exposed persons (PEPs), and the extent of the enhanced customer due diligence measures to be applied in relation to that customer, is that they present a lower level of risk than a non-domestic PEP.

The Government has been working closely with the FCA to follow up on the findings of its review into the treatment of Politically Exposed Persons (PEPs by financial institutions) and to ensure firms improve their practices where necessary. The FCA is in the process of updating its guidance on PEPs to reflect the findings of its review and the changes made by The Money Laundering and Terrorist Financing (Amendment) Regulations 2023. The FCA’s revised guidance will be published in due course.

Secondary information

Type

Written question

Reference

HL2355

Session

2024-26

Subjects

Money laundering Politically exposed persons

Legislation

Money Laundering and Terrorist Financing (Amendment) Regulations 2023

Link

View this Written question on www.parliament.uk