Money Laundering

Debate between Lord Agnew of Oulton and Lord Holmes of Richmond

Wednesday 24th November 2021 Lords Chamber

[Lord Agnew of Oulton (Con)]

My Lords, the right reverend Prelate is right to raise the issues in the Pandora papers and the jurisdictions he refers to, but we are making steady progress in closing the tax gap. Indeed, we have closed it by nearly a third in the last 15 years. In 2005-06 it was estimated at 7.5% and in the last year, 2019-20, it was down to 5.3%. In the last 10 years we have collected some £250 billion that would have been lost if these measures were not in place.

[Lord Holmes of Richmond (Con)]

My Lords, I declare my technology interests as set out in the register. Does my noble friend the Minister agree that it is time we got real about AML and KYC? Does he agree that we need a digital ID, not just for individuals but for corporate and other entities, and to further increase work on digital currencies, not least a potential Britcoin? If we did this, it would go at least some way towards “laundering out, safety and security in”, and “laundering out, social and economic growth enabled”.

[Lord Agnew of Oulton (Con)]

My noble friend is right to be concerned about the vigilance we need to deploy in this area, because it is a fast-moving target. We are always reviewing the situation. In July this year we published a call for evidence, which closed only a few weeks ago, in October. We will respond by June next year, looking at the issues my noble friend raised.

UK Cash Network

Debate between Lord Agnew of Oulton and Lord Holmes of Richmond

Monday 8th November 2021 Lords Chamber

[Lord Holmes of Richmond (Con)]

I beg leave to ask the Question standing in my name on the Order Paper and in doing so declare my technology interests as set out in the register.

[The Minister of State, Cabinet Office and the Treasury (Lord Agnew of Oulton) (Con)]

My Lords, designation of the United Kingdom’s critical national infrastructure is sensitive and as such is not made public. However, the Government have committed to legislating to protect access to cash and to ensure that the UK’s cash infrastructure is sustainable for the long term. The Government recently concluded a consultation setting out proposals for new legislation which seeks to ensure that people only need to travel a reasonable distance to pay in or take out cash.

[Lord Holmes of Richmond (Con)]

My Lords, does my noble friend agree that, whether for the financial inclusion of individuals or the overall resilience of the UK economy, until we have high-speed reliable digital connectivity and high levels of universal digital inclusion, cash still matters, and it matters materially?

[Lord Agnew of Oulton (Con)]

I agree with my noble friend; he is completely correct. It is worth pointing out as some reassurance that over 79% of adults over 65 have made a payment using contactless in the last year and 84% of adults over 65 have used online banking, so I think the digital revolution is spreading to all parts of our society.

Cash Network

Debate between Lord Agnew of Oulton and Lord Holmes of Richmond

Tuesday 7th September 2021 Lords Chamber

[Lord Holmes of Richmond]

To ask Her Majesty’s Government what plans they have to amend competition law to enable collective action to ensure an efficient, effective, accessible, and sustainable cash network across the United Kingdom.

[The Minister of State, Cabinet Office and the Treasury (Lord Agnew of Oulton) (Con)]

My Lords, the Government have not set out plans to amend competition law. However, we are committed to legislating to protect access to cash. The Government are consulting on legislative proposals to protect access to cash withdrawal and deposit facilities. Together with this, the Bank of England has brought together industry to design a new model for wholesale cash distribution. The Government will explore how they can best enable and support an efficient, sustainable and resilient model.

[Lord Holmes of Richmond (Con)]

My Lords, does my noble friend agree that, although the future of payments is digital, the case for cash remains material—material for millions, for individual financial inclusion and national financial resilience for the foreseeable?

[Lord Agnew of Oulton (Con)]

I agree with my noble friend that cash remains a very important measure of exchange in this country. It is now the second most important—it is less important than it was—but we are committed to supporting it.

Kalifa Review of UK Fintech

Debate between Lord Agnew of Oulton and Lord Holmes of Richmond

Tuesday 27th April 2021 Lords Chamber

[Lord Holmes of Richmond (Con)]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper and declare my interests as set out in the register.

[The Minister of State, Cabinet Office and the Treasury (Lord Agnew of Oulton) (Con)]

My Lords, the Government welcome the Kalifa Review of UK Fintech. The Chancellor recently set out the Government’s response at UK FinTech Week. This includes plans to take forward a regulatory scale box for growing firms; government support for an industry-led centre for finance, innovation and technology; improvements to tech visas to attract global talent; and plans to make the UK a more attractive location for public listings.

[Lord Holmes of Richmond (Con)]

My Lords, fintech has a critical role to play in our Covid recovery, in enabling financial inclusion and in levelling up, not least through the nations’ and regions’ fintech clusters. Does my noble friend the Minister agree? What is the Government’s plan to make these criticalities a reality?

[Lord Agnew of Oulton (Con)]

My Lords, the Government recognise the importance of fintech in our economy. Indeed, that needs to flow through to the curriculum; we have extended the number of pupils studying computer science at A-level, for example. In the Cabinet Office, in my role overseeing the Government Digital Service I pushed that out to Bristol and Manchester to engage much more closely with FE and HE in those cities. My noble friend is absolutely right; continual focus on this is needed.

Covid-19: Public Wealth Investment Fund

Debate between Lord Agnew of Oulton and Lord Holmes of Richmond

Tuesday 9th June 2020 Lords Chamber

[Lord Agnew of Oulton [V]]

Infrastructure is a vital part of rebuilding from this crisis. I am unsure at this stage whether it will be done through the mechanism of a sovereign wealth fund. At the moment, we have the opportunity as a national Government to borrow cheaply, which, if invested well in infrastructure, could be a simpler approach than a sovereign wealth fund.

[Lord Holmes of Richmond (Con) [V]]

My Lords, we have a tremendous challenge but a real opportunity for an economic bounce out of Covid. It needs a whole-government, whole-economy approach. Will my noble friend salute the consultation currently being undertaken by the Bank of England around a central bank digital currency, and note the positive impact that this potentially could have for the whole of the country and the economy?

[Lord Agnew of Oulton [V]]

I certainly agree with the noble Lord that it is an extremely important consultation. As he implies, any serious crisis such as this gives the country a chance to look beyond the normal way of dealing with problems. I am very hopeful that initiatives such as he has mentioned will be much more evident over the next few months.