Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, pursuant to the Answer of 2 July 2018 to Question 158173, if he will make it his Department's policy to require (a) banks and (b) other financial institutions to check for proof of power of attorney before that person is able to withdraw money from a dependant's bank account.

The Government believes that it is important that banks should identify their customers for their own commercial purposes and as part of the fight against financial crime. Each firm will have their own policies on identification, and Government does not prescribe those detailed policies.

However, my previous answer on 2 July 2018 referred to the Joint Money Laundering Steering Group (JMLSG) guidance notes, which have a formal status under the Money Laundering Regulations 2017. In relation to situations where a person deals with assets under a power of attorney, the guidance makes clear that that person is also a customer of the firm: consequently, the identity of holders of powers of attorney should be verified, in addition to that of the donor.

The Financial Conduct Authority (FCA) has the objective of protecting and enhancing the integrity of the UK financial system. The FCA use a risk-based approach to supervise retail banks’ compliance with the Money Laundering Regulations 2017, including their adherence to the requirements for customer identification. The FCA’s rules require that firms must maintain effective systems and controls to prevent the risk that they might be exploited by criminals or used to further financial crime. Where a firm’s systems and controls are not adequate, the FCA can and does take enforcement action.