Draft Client Money Protection Schemes for Property Agents (Approval and Designation of Schemes) (Amendment) Regulations 2020

Tim Loughton Excerpts

Monday 2nd March 2020 General Committees

[Christopher Pincher]

The right hon. Gentleman is perfectly entitled and right to ask those questions. We have robust anti-money laundering legislation, as he knows—he has probably debated it in the Chamber of the House of Commons. We believe that the counter-terrorist financing supervisory regime is comprehensive. The banks have to look at the money passing through their accounts, and that is one reason we are here today, because they are taking care, as they properly should, to ensure that the money passing through the accounts they manage is clean. That is placing a burden on a small number of letting agents, who we do not believe are engaged in any money laundering and whose funds we do not believe are significant, but who none the less want to conclude their business.

[Tim Loughton (East Worthing and Shoreham) (Con)]

Perhaps I can aid the Minister on the line of inquiry of the right hon. Member for North Durham. Is it not the case that there are already quite stringent requirements on letting agents and other property agents to ensure that the money that goes through their hands is clean, in terms of the legitimacy of a tenant to be in this country and rent a property? An agent found guilty of letting to somebody who is not legitimately in this country can be fired. There are also unexplained wealth orders, which put legal requirements on agents to ensure that the sources of funds are legitimate. In answer to the right hon. Member, the requirement is on those agents working for landlords to ensure that the moneys that they accept to go into such deposit and other protection schemes are legitimate.

[Christopher Pincher]

My hon. Friend makes the point even more eloquently than I can. Fundamentally, we have robust systems in place to protect against money laundering. I do not think that the extension of the statutory instrument will undermine them in any way.