The government has warned law firms and others subject to anti-money laundering regulations that a number of countries pose a ‘serious threat’ to their businesses.

The Treasury today named several countries which it says do not have proper procedures or systems in place to prevent money laundering or terrorist financing. Iran, Uzbekistan, Turkmenistan, Pakistan, Azerbaijan, and Sao Tome and Principe were all named.

The Treasury said that the threat posed in each of these countries means that enhanced due diligence and monitoring is required of UK firms doing business with them.

The Money Laundering Regulations 2007 require firms to put in place policies, procedures or systems to prevent money laundering or terrorist financing. Regulated businesses are also required to apply enhanced customer due diligence and enhanced ongoing monitoring in any situation that can present a higher risk of money laundering or terrorist financing.

The Treasury was endorsing reports by the Financial Action Task Force (FATF) and MONEYVAL, two inter-governmental anti-money laundering action groups.

Improvements to the anti-money laundering regime in northern Cyprus means that it is no longer a jurisdiction of concern, the Treasury said.

Further information and financial crime alerts are available from the Treasury website, http://www.hm-treasury.gov.uk/fin_money_index.htm.