On 8 September 2016, Parliament published its answers to questions relating to money laundering and the open banking standard confirming the following:

  • When questioned on the steps the Government intends to take to ensure continued cooperation with EU member states to prevent money laundering once the UK leaves the EU, Parliament emphasised the fact that the UK was a founding member of the Financial Action Task Force (FATF) which sets the global standards to combat money laundering and terrorist financing, and the EU Commission and a majority of EU Member States are also FATF members. Parliament confirmed that the UK will continue to play a leading role in tackling illicit financial flows through working with the FATF to ensure that standards are implemented effectively and through engaging bilaterally with countries on operational issues.
  • When questioned on what assessments the Government has made since the Open Banking Standard report of February 2016, on (a) cyber security, (b) data protection and (c) fraud risks an open banking environment introduces, Parliament noted that the Open Banking Working Group, which was set up at the request of the Government, published the report setting out their views and not the Government policy. Parliament referred to the CMA’s final report on its retail banking investigations and the CMA requirement that nine leading UK banks create an open API (Application Programming Interface) to allow access to customer account information as set out in the revised Payment Services Directive (PSD2), which will come into force in January 2018.