Money Laundering and Terrorist Financing (High-Risk Countries) (Amendment) Regulations 2023

Debate between Lord Spellar and Andrew Griffith

Monday 10th July 2023 General Committees

[The Economic Secretary to the Treasury (Andrew Griffith)]

I beg to move,

That the Committee has considered the Money Laundering and Terrorist Financing (High-Risk Countries) (Amendment) Regulations 2023 (S.I. 2023, No. 704).

It is a pleasure to serve under your chairmanship, Sir Graham. The Government recognise the threat that economic crime poses to the UK and our international partners, and we are committed to combating money laundering and terrorist financing. Illicit finance causes significant social and economic costs through its links to serious and organised crime. It also undermines the integrity and stability of our financial sector, and can reduce opportunities for economic growth and legitimate business in the UK.

That is why we have taken significant action to combat economic crime, including legislating for the economic crime and anti-money laundering levy and passing the Economic Crime (Transparency and Enforcement) Act 2022.

[John Spellar (Warley) (Lab)]

The Minister will be aware that there is support from both sides of the House for regulations against money laundering. However, can he assure us that the Government will move rapidly to deal with the issue of the politically exposed persons regime? It is affecting Members of the British Parliament for whom it was never designed, but the Bank of England and the Treasury seem singularly incapable of getting a grip on it.

[Andrew Griffith]

Members on both sides of the House feel strongly about that issue. During the passage of the Financial Services and Markets Act 2023, the Government brought forward amendments in the other place that will place duties on the Financial Conduct Authority to look into the issue rapidly, make specific proposals and implement a lower-risk regime for domestic persons.

The right hon. Gentleman should be assured of my personal diligence, and desire as a Member of this House, to ensure that Members are not obstructed in their democratic duties by the inability to obtain a bank account, or the sheer bureaucracy involved in doing so. That extends to our fellow citizens. The Government, the Chancellor and I have made it clear if we come across any evidence of Members having their bank facilities removed due to freedom of expression, no matter where on the political spectrum they sit, that is simply unacceptable.