Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of compliance with Money Laundering Regulations on individuals providing financial assistance to family members in property transactions; and whether she plans to take steps to reduce the level of administration for such individuals.

Under the Money Laundering Regulations (MLRs), businesses undertaking regulated activity, including facilitating property transactions, must establish policies, controls and procedures to mitigate the risks of money laundering and terrorist financing. These include customer due diligence (CDD) measures to verify the identity of customers and, where necessary, the source of funds involved in the transaction.

The MLRs are not prescriptive in setting out precisely how and when firms should undertake CDD. Instead, firms are required to take a proportionate approach commensurate with their assessment of the risk. Each firm will therefore have its own policies and procedures. The Government is taking steps to ensure anti-money laundering checks remain proportionate and effective, while maintaining robust safeguards against illicit finance.