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Europe-wide PEP list is not the answer, says UK government

Jan 20 2014 Martin Coyle, Regulatory Intelligence

A Europe-wide politically exposed persons (PEPs) list, as planned in the Fourth Money Laundering Directive, would undermine the risk-based approach, according to the UK government which has raised a number of concerns about the proposals. In a letter Lord Deighton, commercial secretary to HM Treasury, said that the government was "broadly supportive" but had concerns with a "limited" number of issues, including PEPs, the introduction of a supranational approach to risk assessment and third-country equivalence. It was published last month but has only just become available, a source said. The letter, addressed to Parliament's European Scrutiny Committee, acknowledged that the push towards treating all European PEPs as domestic PEPs was a step in the right direction as it meant individuals would be analysed from a risk-based perspective. Not all PEPs presented the same level of risk and should not be subject to the same level of due diligence, Deighton said. The government supported the

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