Banks: Internet Transfers of Cash

Lord Arbuthnot of Edrom Excerpts

Thursday 9th July 2020 Lords Chamber

[Baroness Penn]

My Lords, there are circumstances where a firm may not be able to process a transaction immediately—in particular, where there are suspicions of criminal activity such as fraud or money laundering. The regulations in this area require checks to be proportionate to the assessment of risk. I reassure the noble Lord that, in such cases, banks should not be profiting from the holding of payments. On the question of disclosure, as this is potentially about fraud or other criminal activity, disclosing the holding of funds for these purposes may prejudice the investigation that is taking place.

[Lord Arbuthnot of Edrom (Con) [V]]

My Lords, what co-ordination is there between the Bank of England, the police and the National Cyber Security Centre in these matters?

[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.