House of Lords: Politically Exposed Persons

Lord Sharkey Excerpts

Thursday 25th November 2021 Lords Chamber

[Viscount Younger of Leckie (Con)]

Again, this is further anecdotal evidence that has come forward. In line with the FCA guidance on PEPs, in lower-risk situations a firm may take measures to simplify the enhanced due diligence checks. This should include seeking to make no inquiries of a PEP’s family or known close associates, or taking less intrusive and less exhaustive steps. The oversight and approval of the relationship takes place at a level less senior than board or director level. I hope that the meeting that has been mooted will iron out these issues, but clearly they are there.

[Lord Sharkey (LD)]

As other noble Lords have said, the banks continue to break the guidelines on how to treat UK PEPs and their families. The guidelines were set out four years ago and were very clear. Despite that, Nationwide wrote to my daughter last month—as well as to the noble Baroness, Lady Hayter—asking her for enormous and intrusive financial detail. There was a six-page questionnaire to be filled in, and a warning that if she did not fill it in, her account might be closed. That is a clear breach of the FCA guidelines. Can the Minister say what the point of guidelines is if they are not enforced and what sanctions can be imposed on offenders?