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Business: Orders and Regulations

Volume 458: debated on Wednesday 14 March 2007

To ask the Chancellor of the Exchequer what his most recent estimate is of the (a) one-off cost and (b) recurring costs of implementing the Money Laundering Regulations 2003 to (i) businesses and (ii) the regulators. (126672)

The Full Regulatory Impact Assessment for the Money Laundering Regulations 2003 lists the following costs for sectors:

Legal and accountancy: £80-£100 million per annum;

Estate agents: £10-£15 million for the first year. £5-£7.5 million thereafter;

High Value Dealers: £350 per firm per year.

HM Treasury’s simplification plan ‘Delivering Better Regulation’, published in December 2006, identified a net administrative burden of £921,617 (per annum). This relates to the supervisory arrangements for Money Service Businesses and High Value Dealers, as set out in Part 3 of the Regulations.

The Regulations have brought benefits in detecting, deterring and disrupting money laundering and terrorist financing.

HM Treasury is committed to reducing regulatory burdens where possible. Work on identifying simplification measures to reduce the burden for industry of applying anti-money laundering controls is ongoing.