Question to the HM Treasury:

To ask Her Majesty's Government, further to the Written Answer by Lord Deighton on 17 June (WA 42), whether the current industry guidance, which has been approved by Treasury Ministers, has yet been issued; whether a risk-based approach under the Fourth Money Laundering Directive means that in the United Kingdom, United Kingdom parliamentarians will be treated as politically exposed persons; and, if so, whether the industry guidance will need to be revised.

A range of industry anti-money laundering guidance has been issued by bodies such as the Joint Money Laundering Steering Group (JMLSG). The last major revision of the JMLSG guidance was in 2011 although some detailed changes were made in 2013 and 2014. This material is published on the JMLSG website - http://www.jmlsg.org.uk/

Discussions of the proposed Fourth Money Laundering Directive are continuing. The expectation is that in accordance with the updated global standards adopted by the Financial Action Task Force, domestic Politically Exposed Persons, including UK Parliamentarians may, on a risk-based assessment, be subject to enhanced due diligence.

The Treasury expects that if the Directive is adopted and transposed into UK law, UK anti-money laundering guidance will need to be revised.