The below Parliamentary question was asked by Charles Walker on 2016-03-18.
To ask the Secretary of State for International Development, what estimate her Department has made of the number of its senior civil servants who will potentially fall under the provisions of the Fourth EU Money Laundering Directive, 2015/849; and what assessment she has made of which of her Department’s agencies or other public bodies will potentially be classed as holding a prominent public function for the purposes of that directive.
Mr Desmond Swayne
Under the Fourth Anti-Money Laundering Directive, which will be transposed into national law by June 2017, a politically exposed person is one who has been entrusted with a prominent public function domestically or by a foreign country. This would include some senior civil servants, such as ambassadors and chargés d’affaires. The Government’s view is that the Directive permits a risk-based approach to the identification of whether an individual is a politically exposed person and, when identified, the Directive enables the application of different degrees of enhanced measures to reflect the risks posed. The Government will be setting out this view in a consultation which will be published shortly.
The changes proposed under the Directive should not prevent any individual in this category from gaining or maintaining access to financial services. The Treasury regularly raises these issues with financial institutions and the regulator, and we encourage financial institutions to take a proportionate, risk-based approach when applying these measures.