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Money Laundering: Councillors

Volume 456: debated on Tuesday 6 February 2007

To ask the Chancellor of the Exchequer whether local councillors in the UK are included in the category of politically exposed persons under the Third EU Money Laundering Directive. (118231)

I refer my hon. Friend to the answer I gave on 14 December 2006, Official Report, column 1424W, on the effect of Commission Directives 2005/60/EC and 2006/70/EC.

On 22 January the Government published draft Money Laundering Regulations 2007 for consultation. These regulations will implement the directive. Regulation 10 (5) defines a politically exposed person. The draft regulations limit the application of enhanced due diligence measures to politically exposed persons either resident abroad or entrusted with prominent public functions by a foreign state, European or international body.