Money Laundering

Lord Mackenzie of Framwellgate Excerpts

Wednesday 24th November 2021 Lords Chamber

[Lord Agnew of Oulton (Con)]

My Lords, the National Economic Crime Centre leads and co-ordinates the UK’s response to economic crime. Prosecutions for economic crime are pursued by the National Crime Agency and other enforcement partners. Annually, some 7,900 investigations, 2,000 prosecutions and 1,400 convictions take place in connection with money laundering-related activities.

[Lord Mackenzie of Framwellgate (Non-Afl)]

My Lords, I take the prevention of money laundering as an important imperative. However, I am not sure the banks are dealing with it sensibly. I have had calls from banks asking about my monetary transfers. One bank, which I will not identify, could not contact me as I was away, so it wrote to me in what I regard as a threatening manner, saying, “If we have not received this information about transfers by” a particular date, then three days hence, “we will have to restrict access to your accounts. This will mean you will not be able to withdraw money or make mortgage payments or other standing orders and direct debits.” I am aware of business customers placed in dire financial straits without fault because their accounts have been frozen for so-called security reasons. Does the Minister agree that disrupting normal business commerce just to increase numbers of checks is unacceptable and that the banks need to get the balance right?

[Lord Agnew of Oulton (Con)]

My Lords, it is extremely difficult to get the balance right, because the banks are damned if they do and damned if they do not. I am sorry the noble Lord had personal difficulties in that situation, but if it had been a fraudulent transaction with large sums lost, I think he would have been even more upset. We have to err on the side of caution. The banks need to improve their ways of intervening and use artificial intelligence to be more effective and not go after false alarms.