Money Laundering: Regulation
The question
To ask the Chancellor of the Exchequer, what guidance she has issued to local authorities on Anti-Money Laundering checks in relation to (a) working with and (b) loaning funds to developers.
Answered by Emma Reynolds
Guidance for local authorities on investments is available here: Guidance_on_local_government_investments.pdf
It is for local authorities to determine their own capital strategies as they are best placed to understand local needs and are accountable to the local electorate. In doing so, local authorities have a duty to comply with the Prudential Framework and must have regard to statutory guidance to ensure plans are prudent, affordable, and sustainable.
Property developers are in scope of the Money Laundering Regulations if they act as estate agents (i.e. they sell their properties through a separate legal entity) or provide relevant financial services and products. Guidance on how such firms should comply with the Regulations is published online by Anti-Money Laundering supervisors, including His Majesty’s Revenue and Customs and the Financial Conduct Authority. The HMRC guidance on estate agents can be found here: Estate and letting agency business guidance for money laundering supervision - GOV.UK
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