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Written question asked by Baroness Hayter of Kentish Town (Labour) on Tuesday, 1 July 2025, in the House of Lords. It was due for an answer on Tuesday, 15 July 2025. It was answered by Lord Livermore (Labour) on Tuesday, 15 July 2025 on behalf of the Treasury.

Money Laundering and Terrorist Financing (Amendment) Regulations 2023

Question

To ask His Majesty's Government what progress they have made in implementing the Money Laundering and Terrorist Financing (Amendment) Regulations 2023, and in updating the Financial Conduct Authority guidance with regard to politically exposed people.

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. Following a consultation, the FCA published updated guidance on PEPs on 7 July 2025. It is available here: https://www.fca.org.uk/publications/finalised-guidance/fg25-3-treatment-politically-exposed-persons

Secondary information

Type
Written question
Reference
HL9009
Session
2024-26
Subjects
Money laundering Terrorism Politically exposed persons
Legislation
Money Laundering and Terrorist Financing (Amendment) Regulations 2023
Contains statistics
Yes
Link
View this Written question on www.parliament.uk