House of Lords: Politically Exposed Persons

Debate between Viscount Younger of Leckie and Baroness Hayter of Kentish Town

Thursday 25th November 2021 Lords Chamber

[Baroness Hayter of Kentish Town]

To ask Her Majesty’s Government what assessment they have made of the case for designating all Members of the House of Lords as Politically Exposed Persons for the purposes of anti money laundering rules.

[Viscount Younger of Leckie (Con)]

My Lords, under the money laundering regulations, a politically exposed person—a PEP—is defined as an individual who is entrusted with prominent public functions, including Members of Parliament or similar legislative bodies. In July 2017, the Financial Conduct Authority published guidance on PEPs, which stated that UK PEPs should be treated as lower risk unless other risk factors applied. Firms are required to apply enhanced due diligence to all PEPs on a risk-sensitive basis.

[Baroness Hayter of Kentish Town (Lab)]

My Lords, it seems that genuine money launderers can bring in foreign money and buy up property with no disclosure of ownership, but we PEPs get this ridiculous six-page questionnaire, which I have just received, wanting to know about my past employers, my family wealth—I have not got any—my lottery wins, my jewellery, and not just my car but “cars”; I have only got one. Many of your Lordships have approached me to say that they and their families have been similarly inconvenienced. The Minister has just reflected that the FCA guidance says that the exposed person should be treated as low risk, but that is not what is happening. Will the Minister meet me and other affected Peers, along with Treasury and FCA officials, to discuss this, so that banks can spend rather more of their time catching the real crooks instead of wanting to know about my—I am afraid—John Lewis jewellery?

[Viscount Younger of Leckie (Con)]

I have a lot of sympathy with the issues raised by the noble Baroness. The Government are committed to tackling the threat posed in the UK by economic crime, but it is imperative that we minimise the burden placed on legitimate businesses and customers. I hope that I can give some assurance to the noble Baroness that the Treasury and the FCA are working together to consider what more can be done in this space, and, where possible, to engage further with banks and firms on how they could interact with their customers who are PEPs. We would be very happy to have a further call or meeting with the FCA to discuss this further.

Free Trade Agreement: New Zealand

Debate between Viscount Younger of Leckie and Baroness Hayter of Kentish Town

Monday 25th October 2021 Lords Chamber

[Baroness Hayter of Kentish Town (Lab)]

I declare an interest as the very new chair of the International Agreements Committee, which looks forward to scrutinising the deal in due course, once we have the detail. I hope the Government will make the text available in good time for us to do our work and report to the House, and that the noble Lord, Lord Grimstone, will engage in the committee’s dialogue on it. I also hope that, when we see the explanatory memorandum, it sets out the detail with the devolved Governments in full, and that the consultation with them will not be limited simply to devolved competences but will include areas of particular pertinence to their special economies. I hope the noble Lord confirms that that is possible.

The International Agreements Committee will shortly be asking for evidence and input about the deal, including for consumers, which I hope goes further than just the Marlborough sauvignon blanc and posh honey mentioned in the Statement, as there are more serious things. Perhaps the Minister could help our committee by encouraging any who put their views on the deal to the DIT also to share those views with our committee, as they will feed into our scrutiny.

[Viscount Younger of Leckie (Con)]

This allows me, from the Dispatch Box, to congratulate the noble Baroness on her new appointment. I hope to answer some of her questions on our engagement with the devolved Administrations. I also reassure her that the devolved Administrations received a draft copy of the AIP document 24 hours in advance of publication, and received a final AIP document and explainer in advance of publication on the evening of 20 October. I further reassure the noble Baroness and the House that, as with other free trade agreements, we have been regularly consulting with the devolved Administrations through chief negotiator briefings and the senior officials’ group—which is not naming names, but naming “nearly” names. I hope that helps. The point is that through this process we have understood the devolved Administrations’ priorities in the specific negotiations and have shared texts related to areas of devolved competence.

I will briefly quote my right honourable friend the Secretary of State, who said in the other place during her Statement that conversations took place with Ministers in the devolved Administrations on 20 October

“to really get a sense of, and to encourage, the exciting opportunities that now exist with the agreement in principle.”—[Official Report, Commons, 21/10/21; col. 937.]

As we move from the AIP to signature, there will be refinement to ensure that the concerns and issues specific to the devolved nations are resolved in the final deal.

Scotland Act 1998 (Transfer of Functions to the Scottish Ministers etc.) Order 2020

Debate between Viscount Younger of Leckie and Baroness Hayter of Kentish Town

Tuesday 11th February 2020 Grand Committee

[Baroness Hayter of Kentish Town (Lab)]

My Lords, I also thank the Minister for outlining this modest, minor order. We are happy to support it, given that its whole purpose is to enable Scottish Ministers to help young people who have been out of work for six months or more by giving them a £250 grant to help them take up a job. That is pretty important because, as the Minister said, the unemployment rate for those aged under 25 is higher than for older people. Having supported the order’s aims, I have a few brief questions for the Minister.

First, could he outline what consultation, if any, took place, particularly with the young Scottish people who will be affected by this? Secondly, and I guess this will have a technical answer, why is it necessary to have a whole statutory instrument for what seems a very minor issue? Why was it not included in the Scotland Act 2016? It seems even more minor than I thought when I first read it. If the expenditure is still a joint responsibility, it is giving only a little bit to Scotland and it seems extraordinary that it needs all this. I am delighted to be here with colleagues this afternoon to deal with it, but it is hard to understand why it needs a whole SI.

Thirdly, given that the Minister said the figure would be £2 million for the total pot, does he happen to know how the Scottish Government propose to raise the money to fund this? Fourthly, to his knowledge—I understand this is not his responsibility—are the Scottish Government planning any evaluation to ascertain the scheme’s effectiveness? Before the noble Lord, Lord Bruce, got in first, I was going to ask about accountability for this expenditure. Lastly, should a young Scottish person be awarded this £250 grant, is there any risk that they would lose access to any UK-wide funding?

As I said, we welcome any initiative that helps young people into work, but do the Government have any explanation for how an SNP Government are overseeing such a horrendously high level of youth unemployment? According to the Scotsman, the figure is even higher for this age cohort than the Minister said: 9.8%, which is three times higher than that in England and a rise of 0.8% in the year to July 2019. Does the Minister have any thoughts about that? Do the Scottish Government have any other plans in hand that are more meaningful than a £250 grant to ensure that these youngsters have a more successful entry into adulthood? If I may again borrow the words of the noble Lord, Lord Bruce, should the Scottish Government perhaps be a little more ambitious in seeking to reduce young people’s unemployment in Scotland? Nevertheless, we agree to the order.

[Viscount Younger of Leckie]

My Lords, I thank the Committee, the noble Lord, Lord Bruce of Bennachie, and the noble Baroness, Lady Hayter, for their points and questions. I will do my best to answer them. The first question to address is about accountability for this money. A young person receives the £250 cash in hand; the point is to allow the young person to spend the money in the way they feel is right. It is designed to go on travel or food costs to help them in their early days in work. However, they could easily decide to spend it on a PlayStation or something. That is the truth. The only answer I can give is that there is trust that once young people have the job they will decide to spend the money wisely.

[Baroness Hayter of Kentish Town]

That may answer the question asked by the noble Lord, Lord Bruce. I meant what accountability do the Scottish Government have in setting up this scheme that they are choosing the right people and that the pot is being handled efficiently. I recognise that this is not an issue for this government department, but the Minister might know from discussions. He might want to write, if it is not within his knowledge.

[Viscount Younger of Leckie]

The noble Baroness makes a good point. I will need to write. On how wisely the £2 million is being spent by the Scottish Government, the assumption is that the £250 grants will go to the right people at the right time for the right reasons. I will write if we can get some more information on that point.