Lords' classification as 'politically exposed persons' also affects their families. Tim Graham Photo Library via Getty Images.
People have revealed that their political activities result in their children being denied bank accounts under draconian money laundering regulations.
Lords Revealed. how financial institutions threaten to reject them as customers unless their family members agree to undergo intrusive checks.
Their testimony comes after The Telegraph reported that ministers intend to lift controversial EU rules on “politically exposed persons”.
Controversial rules require banks to carry out “enhanced” background checks on public figures such as politicians, diplomats. , army leaders and even members of the royal family.
Lord Sharkey's bank requested information about him from his three children. Photo: Roger Harris Photography
Lord Sharkey, a fellow Liberal Democrat, described how they were used to solicit personal financial information from his three children.
A former adviser to Nick Clegg said he was having trouble with NS&I, a government agency. savings bank after new rules were introduced in 2016.
“I was very surprised when they wrote to me demanding much more details about my finances and sources of funds,” he said.
“My three children were even more surprised to receive the same letter. They didn't even have NS&I accounts, which was indicative of overzealousness on the part of the organization.”
He said that when he complained, the bank told him that they were required to collect information and he must “comply or we will close your account.”
Lord Sharkey said he only solved the problem by getting the Treasury to intervene, and that he was “lucky” to be dealing with a state-owned bank.
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He urged the government to take tougher action to ensure the city's Financial Conduct Authority stops such rule violations.
“The existing guidelines are fine. The problem is that financial institutions don't follow them and the FCA doesn't enforce them,” he told The Telegraph. it was so hard to care for.” Photo: Universal Pictorial Press Photo
Lord Forsyth, a Conservative peer, said his daughter was asked if she would move her account because of her relationship to him.
A former Cabinet minister under Sir John Major said both were Kutts. customers, the same bank that had recently canceled Nigel Farage's account.
He remembered the manager asking her, “Is there any chance you'll move to another bank because you're so hard to take care of because Is your dad a politically exposed person?”
“In my opinion, this is an absolute shame. It is difficult for our children to get a mortgage. It is difficult for people to bequeath,” said Lord Forsyth.
Lord Kirkhope, another Conservative peer, said that one of his sons was denied a bank account after it was revealed that he was their father.
He recalled: “Everything went like clockwork until someone didn't contact him and ask, “Are you by any chance related to Lord Kirkhope?” He said yes.
Lord Kirkhope also claims that his son was denied a bank account because of his status Photo: ROGER HARRIS PHOTOGRAPHY
“About two weeks later, he received a message saying that his account application had been rejected. It was obvious why.”
Baroness Cramer said she was asked for proof of her deceased husband's income when she tried to open a savings account with Chase UK.
“My husband died. 17 years ago, and I don't know how many people still have payslips from 17 years ago, let alone a deceased spouse's payslips,” she said.
“It seemed so intrusive and so stupid. To be honest, I told them to forget it, withdraw my application,” she told The Telegraph.
She also revealed that her sister-in-law was even blocked from trying to open an account in the US. because they were connected.
Like many colleagues, she expressed her suspicion that many banks outsource PEP checks, adding that “an entire industry has grown around it.”
The banks insist they are simply following the rules set by the city's supervisory authority.
Senior MPs raised concerns about the rules and urged Chancellor Jeremy Hunt to take stronger action to rein in financial institutions. .
Kafkaesque rules
David Davies, a former cabinet minister, said that ministers should do away with Kafkaesque rules altogether, and it is “ridiculous” that children of the same age are targeted.
< p>“Unless you're insolvent, I don't think banks should just be able to close your account and if they do, there should be an automatic appeal process,” he said.
Anne Marie Morris, The Conservative MP and member of the Commons Treasury committee spoke out against “intrusive checks” that she said led to “the wrong balance.”
“We need to see how this affects the wider family,” she said: “It's one thing for a person who decides to enter politics to be subject to special scrutiny.
“But the way it's judged seems to apply quite broadly, not only to the direct family, but even to the indirect family.”
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