Question to the HM Treasury:

To ask Her Majesty's Government what requirements UK companies have to conduct due diligence on the source of funds when selling goods to (1) members of, or (2) representatives of the (a) government of Zimbabwe, and (b) governments of other countries, where widespread corruption is evident.

The Government has not had specific discussions with the Bank of England or Reserve Bank of Zimbabwe on this issue. The UK does not have any foreign currency controls in place.

Separately, under the Money Laundering Regulations (MLRs), regulated entities are required to conduct enhanced due diligence if a transaction or a business relationship involves a ‘politically exposed person’ such as a Minister from another country. The MLRs also require that regulated entities conduct enhanced due diligence on transactions and businesses relationships involving individuals established in a high risk country. The UK’s High Risk Countries list is specified under the MLRs and aligns with assessments made by the Financial Action Taskforce, the global anti-money laundering standard setter.

Where financial institutions are in scope of the MLRs, they are supervised by the FCA. Where high value dealers are in scope of the MLRs, they are supervised by HMRC.