Howard: Stepping up the pressure

Michael Howard has stepped up his criticism of the government's discussions with casino operators about the implementation of money laundering regulations.

In the Commons earlier this week, the Conservative leader quizzed the prime minister on an email sent from a culture department official to senior employees at major US casino firms.

He said the email contradicted claims from culture secretary Tessa Jowell that money laundering issues were being left to the Treasury.

Tony Blair rejected the criticism, however, insisting it was ""utterly absurd" to suggest any corrupt conversations had been held.

But in a letter to the prime minister on Friday, the Tory leader said a letter he had since received from Jowell failed to address the key issues.

"The question I put to you repeatedly was whether the DCMS has had discussions with foreign casino operators about relaxing the money-laundering rules," Howard wrote to the prime minister.

"In reply, you endorsed Tessa Jowell's claims in parliament on Monday, when she said that discussions on the money laundering directive were a matter for the Treasury."

He added that Jowell's letter "contradicts this", admitting that her department "has indeed been discussing this very directive and its possible implications".

"She goes on to say that such discussions relate to the form the controls might take, and 'the appropriate level of transactions within casinos at which identification or other requirements should bite' – in other words, whether the proposed rules should be relaxed."

Howard said this admission proved that Jowell's statements in parliament were "highly misleading".

In a second letter sent to the culture secretary, Howard questions why Jowell made her initial claim that money laundering issues were being left to the Treasury.

"Why did you deliberately withhold this information from parliament on Monday during the debate?  Don't you agree that your statement to parliament was highly misleading?" he asked.