Lord Greaves – 2016 Parliamentary Question to the HM Treasury
The below Parliamentary question was asked by Lord Greaves on 2015-12-17.
To ask Her Majesty’s Government whether, under the Money Laundering Regulations 2007, a Parliamentary pass should be accepted as photo-identity evidence for the purposes of opening a bank account, becoming a signatory to a bank account, and similar actions; and if not why not.
Lord O’Neill of Gatley
The Government’s Anti-Money Laundering regime has a clear aim: to make the UK financial system a hostile environment for illicit finances, whilst minimising the burden on legitimate businesses and reducing the overall burden of regulation.
Under the Money Laundering Regulations 2007, customers opening a bank account must satisfy the relevant financial institution as to their identity. Financial institutions are also required to maintain appropriate records and conduct ongoing monitoring of the business relationship. The Regulations do not prescribe that customers must produce particular documents such as a driving licence or passport, or indeed a Parliamentary pass.
Professional bodies such as the Joint Money Laundering Steering Group (JMLSG, a finance, trade and banking industry consortium), issue detailed operational guidance to their members about how the Regulations should be applied in practice, which is available on their website. The JMLSG guidance encourages businesses to consider a wide range of reliable documentation that customers can produce for customer due diligence purposes. Each business will however have their own policies in relation to customer due diligence checks. The Regulations require businesses to be proportionate in the checks they carry out, so that they safeguard against the potential risks but the process is not unnecessarily burdensome for the customer.
