Banks: Internet Transfers of Cash
Debate between Viscount Waverley and Baroness Penn
Baroness Penn
My Lords, the Government have set up a joint task force that works across HMRC, the regulators and law enforcement bodies to tackle fraud and concerns about payments.
Viscount Waverley (CB) [V]
My Lords, I declare my interests as set out in the register, and add to the concerns of the noble Lord, Lord Mackenzie. Can the Minister look at a mightily odd situation whereby Barclays Bank, on behalf of the sector, would welcome clarity and the need for urgent regulatory reform in a certain regard? Is the Minister aware of the term “politically exposed persons”—PEP, in the jargon? What is meant by it, and why does it exist such that it affects the ability of that bank being able to open a bank account and, additionally, MoneyGram not effecting a transfer of €300 to Sierra Leone for a well-developed SME fintech start-up that would have brought tax revenues and employment for the UK and driven opportunity globally to UK SMEs but which has, regrettably, driven the platform offshore?
Baroness Penn
My Lords, I am aware of “politically exposed persons”. Under the money laundering regulations 2017, firms must assess the risks posed by those customers on a case-by-case basis and tailor their enhanced due diligence measures accordingly. The FCA has published guidance explaining what these obligations look like in practice. Furthermore, the guidance is that UK politically exposed persons should be treated as low risk, unless other factors apply.