Question to the Department for Business, Energy and Industrial Strategy:

To ask Her Majesty’s Government, further to the Written Answers by Baroness Neville-Rolfe on 19 December 2016 (HL4007) and 28 December 2016 (HL4008), what due diligence is undertaken to guard against international scams where a new company sets up in the UK with only an overseas bank account or credit card, and no domestic banking arrangements.

A company incorporated in the UK which has banking arrangements overseas but not in the UK would be subject to the due diligence checks by the bank required by the local law where the branch of the bank is located. A company which incorporates in the UK but carries on its business outside the UK may still use the services of UK agents, who may carry out due diligence checks, whether voluntarily or as required by UK law.