Pooled Client Bank Accounts Guidance 2021-12-07
2021-12-07
TAGS
Response quality
Questions & Answers
Q1
Partial Answer
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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.
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.
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.
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Assessment & feedback
No specific commitment to deliver a solution or firm timeline was given.
Response accuracy
Q2
Partial Answer
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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.
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.
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.
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Assessment & feedback
No specific commitment or timeline for delivering a solution was provided.
Response accuracy
Q3
Partial Answer
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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.
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?
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.
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Assessment & feedback
No firm date was given for implementing a register, and no acknowledgment of broken promise.
Response accuracy