Jeremy Hunt suspected that the 'PEP' responsible for this decision. Photo: JUSTIN TALLIS/AFP/Getty Images
Jeremy Hunt is among the politicians who have been denied a bank account due to a “grossly disproportionate” application of money laundering rules, The Telegraph can reveal.
In recent months, Mr Hunt has told colleagues that his application to open an account was rejected by online bank Monzo before he was appointed chancellor.
Mr. Hunt suspected that the “politically exposed persons” (PEP) rules were responsible for this decision, although banks generally do not confirm this to those who are subject to the rules.Parliamentarians have warned that the rules are causing their own bank accounts and those of their children to be closed.
An “outrageous burden”
You can also find that a number of peers, including Lord Clark of Nottingham – one of Mr Hunt's predecessors as chancellor – had their credit cards canceled due to what they consider to be excessive enforcement of American Express rules.
Lord Clark , who was chancellor under John Major, said he was suddenly faced with onerous demands from American Express to provide documentation and financial information despite holding a credit card with the firm for decades.
The former deputy said: “I decided that I should not be bothered by such exorbitant burdens that are placed on me. I had my card from the 1970s and let them cancel it.”
Lord McFall of Alluit, Lord Speaker, wrote a year ago to Nikhil Rathi, Managing Director of the Financial Conduct Authority, in which he expressed his colleagues' concerns about the impact of the rulings on members of the Lords and their families.
< p>The relevant rules stem from a global initiative aimed at rooting out corruption in regimes around the world and require banks to carry out enhanced due diligence on politically exposed persons such as politicians, diplomats, army commanders and even members of the royal family.
But the UK version of the EU did not take into account the qualifications recommended by the Intergovernmental Financial Action Task Force on Money Laundering, which would require that only those who are in “high risk business relationships” should be subject to screening. different from parliamentarians. with mediocre savings and investments.
“Lack of customer care”
Baroness Hayter of Kentish Town, a former Labor Party spokesperson, said the FCA had failed to effectively enforce recommendations from 2017, which made it clear that the application of the rules should be “proportionate” and that potential PEPs should be assessed “on a case-by-case basis.” case.” the basis.
In the absence of a satisfactory response from the FCA, colleagues were able to amend the Financial Services and Markets Act, which has since become law, requiring the regulator to conduct an urgent review.
Lady Hayter said: “There was no need to change the law, to force them to do what they were authorized to do. This lack of concern for clients is a serious indictment of their ability to stand up for clients.”
Andrew Griffith, Secretary of the Treasury Department of the Treasury, asked the FCA to treat his review as a priority.
“A completely disproportionate use of the rules”< p>Last month, Lord Forsythe of Drumlin, a former Scottish secretary, told the Lords: “I have had an American Express card since 1979, but only recently did I receive an email that I thought was a spoof saying that I owe provide copies. my passport and bank statements, my investments and income details, and my pay slips – as they are – in American Express within a certain number of days.
“Then I received another email saying that my card was suspended because I was unable to prepare this material. When I called American Express… they said, “If you don't present it, your card will be suspended.” Of course, there were a number of payments on my card, which caused me some embarrassment.
“This is a completely disproportionate use of the rules.”
Viscount Trenchard, another Conservative, said his American Express card was canceled last year despite his decision to provide information requested by the firm.
Lord Naseby, former Deputy Speaker of the House of Commons, added: “My experience was identical to that of … Lord Forsyth. To be honest, I canceled it all; Barclaycard is doing much better.”
In response to the letter from the Lord Speaker, the FCA acknowledged that it had met with colleagues to discuss this issue in November 2021 and January 2022.
But it said that individual MPs should complain to the financial ombudsman about their affairs, despite recognizing that he could intervene if necessary.
Treasury spokesman said he would not comment on matters relating to personal finance chancellor.< /p>
Monzo stated, “We do not comment on anyone's Monzo product application or compliance decisions.”
An American Express spokesperson stated, “As a regulated financial institution, we solicit information from our cardholders to comply with our regulatory and legal obligations, and enhanced screening is required for certain individuals.
“We are constantly reviewing our approach in line with applicable guidelines to remove any unnecessary requests from our card members while ensuring that we meet our obligations.”
An FCA spokesperson stated: “Over the past For 18 months, we have reminded banks of the need to be proportionate. As a result, some of them have improved their processes and everyone now has a direct contact to whom people can report problems.”
Recent Comments