House of Lords: Politically Exposed Persons

Lord Vaizey of Didcot Excerpts

Thursday 25th November 2021 Lords Chamber

[Lord Vaizey of Didcot (Con)]

My Lords, with impeccable timing, my building society wrote to me yesterday to say that it was reviewing its approach to PEPs, following my throwing my toys out of my pram when it emailed me and my 83 year-old mother to ask, among other things, about my casino winnings. It is quite clear that the banks and building societies are ignoring the FCA’s advice, which is to approach each person as an individual and assess the risk individually. I therefore commend the Minister for reminding them of their obligations and look forward to joining the noble Baroness’s meeting. The only silver lining to come out of this debacle is that it is only since joining your Lordships’ House that I have become a politically prominent figure.

[Viscount Younger of Leckie (Con)]

The guidance provides clarity on how firms should apply the definitions of a PEP in the money laundering regulations in the UK context. This includes providing that firms should treat only those in the UK who hold truly prominent positions as PEPs and not apply the definition to local government, more junior members of the senior Civil Service or any military officials other than the most senior. On casinos, my noble friend will know that they are regulated by the Gambling Commission. Again, I offer my sympathy with the points raised.