Commons Sense

House of Commons · Ministers' Questions

Pooled Client Bank Accounts: Guidance

Tuesday 7 December 2021 · 3 questions

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

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 2 Not answered 0

Key points

  • Kelly Tolhurst raised concerns about the impact of new guidance on pooled client bank accounts for yacht brokers.
  • The Minister committed to meeting with Kelly Tolhurst, UK Finance, and the Association of Brokers and Yacht Agents to address the issue.
  • James Murray questioned the Government about the abandonment of plans for a new register of entities to prevent money laundering in UK property.

Topics (select to filter)

Questions & Answers

Q1 Kelly Tolhurst Con
Business Compliance Business & Trade
Context

The question arises from the impact of new guidance by the Joint Money Laundering Steering Group on pooled client bank accounts, which has led to closures of such accounts.

Question

What assessment he has made of the effect on businesses of the Joint Money Laundering Steering Group guidance on pooled client bank accounts. Yacht brokers have been using these accounts for years without issue but changes mean some are now closing them, putting established businesses at risk in coastal communities like my constituency.

Answer from John Glen

My hon. Friend's concerns are taken seriously and although the Government will never insist on individual lending decisions by banks, we will engage closely with affected businesses. I will meet her, UK Finance, and the Association of Brokers and Yacht Agents to ensure effective use of guidance in this situation.

Partly answered

Not addressed: No specific commitment to deliver a solution or firm timeline was given.

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Q2 Kelly Tolhurst Con
Economy Business & Trade
Context

Yacht brokers rely on pooled client bank accounts for financial protection but recent guidance changes have caused banks to close these accounts, putting businesses at risk.

Question

Changes to the guidance mean that banks are closing some pooled client accounts used by yacht brokers without issue for years. Will my hon. Friend meet me, UK Finance, and the Association of Brokers and Yacht Agents to find a solution quickly? This is an important sector in coastal communities like my constituency.

Answer from John Glen

My hon. Friend's industry knowledge is respected, and her concerns are taken seriously; the Government will engage closely but does not insist on individual lending decisions by banks. I will meet with her, UK Finance, and the Association of Brokers and Yacht Agents to ensure guidance use is effective.

Partly answered

Not addressed: No specific commitment or timeline for delivering a solution was provided.

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Q3 James Murray Labour (Co-op) Ealing North
Business Compliance
Context

The Pandora papers revealed how UK property is used for money laundering via overseas shell companies. The Government promised to deliver a register in 2018, but this commitment seems abandoned since the current Prime Minister took office.

Question

In 2018, draft legislation was published for a new register of entities to prevent the use of UK property for money laundering. Ministers pledged to implement this in 2021, yet it has been abandoned under the current PM. Will the Minister admit that the promise is broken and give a firm date for delivering the register?

Answer from John Glen

The UK received its best ever evaluation in anti-money laundering from the financial action taskforce report in 2018. We have taken actions in two or three areas.

Not addressed: No firm date was given for implementing a register, and no acknowledgment of broken promise.

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