Question
To ask Her Majesty's Government further to the answer by Lord Bates on 19 October (HL Deb, col 665) and Lord Hain's letter to the Minister of 25 September, what discussions they have had with the President of the European Commission in relation to allegations that banks falling under EU jurisdiction have been conduits for money laundering from South Africa; and whether they will make the outcome of those discussions public.
Answered on
6 November 2017
The Chancellor of the Exchequer and HM Treasury pass information they receive on specific allegations to the Financial Conduct Authority (FCA), Serious Fraud Office and National Crime Agency as appropriate. This includes information received by the Chancellor from Lord Hain linking HSBC and Standard Chartered to possible money laundering by individuals connected to the Government of South Africa and subsequent allegations in the House of Lords linking the Bank of Baroda. However, these agencies are operationally independent and HM Treasury has no power to direct them in relation to any individual cases.
The European Commission has no direct jurisdiction over allegations of money laundering, so any potential investigations would be taken forward by national competent authorities. The FCA and other agencies have extensive cooperation networks in the EU and internationally. These agencies will be best placed to determine whether they are in possession of information which could usefully be shared with authorities in other states. As a matter of course, they do not comment on discussions with specific firms or regulators.