Commons Sense

House of Commons · General Debate

Financial Services

26 April 2021 · 3 other contributors

Opened by John Glen Con Salisbury

Business Compliance

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

John Glen raised concerns about financial services in the House of Commons. Other MPs contributed to the debate.

Key points

  • The Government are committed to combating money laundering and terrorist financing to protect national security and financial stability.
  • The proposed regulations will amend the definition of high-risk third countries by replacing references to the EU list with a new UK autonomous list based on FATF standards.
  • This change aims to ensure the UK remains at the forefront in the fight against money laundering and terrorist financing.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

John Glen Con Salisbury

The Government are committed to combating money laundering and terrorist financing, recognising the threat it poses to national security and financial stability. The proposed regulations amend the definition of high-risk third countries, removing references to the EU list and inserting a new UK autonomous list based on the Financial Action Task Force (FATF) standards. This change ensures that the UK remains at the forefront in combating money laundering and terrorist financing while protecting businesses from those posing significant threats.

Other contributors (3)
  • Pat McFadden Lab Wolverhampton South East

    Supporting the instrument, the Labour Party acknowledges its importance but questions why the UK was considered a high-risk jurisdiction in recent reports and why many shell companies are based here. They urge the Government to address issues like Companies House reform, establish an overseas entities register, meet deadlines for implementing these measures, and act on recommendations from intelligence committees regarding money laundering.

  • Peter Grant

    Welcoming the regulations but criticising the Government's approach as reactive rather than proactive, highlighting issues such as Commonwealth countries and territories with poor records in money laundering. The SNP questions why so many companies register in places like the Cayman Islands and calls for more robust action to address these practices.

  • John Glen Con Salisbury

    Thanked the right hon. Member for Wolverhampton South East and the hon. Member for Glenrothes for their points, introduced a new autonomous high-risk third countries list to ensure UK legislation remains up to date, addressed questions on FinCEN files, Companies House reform, and acknowledged ongoing work in this area. He emphasised that the regulations represent the UK's new approach to high-risk third countries without referencing EU legislation, ensuring alignment with international standards in the fight against money laundering and terrorist financing. The Financial Action Task Force (FATF) monitors the UK regularly and updates its list of high-risk countries up to three times a year. He highlighted recent government actions including the creation of the National Economic Crime Centre, passage of the Criminal Finances Act 2017, publication of a landmark economic crime plan in 2019, and the inclusion of Cayman Islands on the UK's list based on FATF’s publicly available statement.

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