Bank of England and Financial Services Bill [Lords]

Debate between Charles Walker and Greg Knight

3rd reading: House of Commons & Report stage: House of Commons
Tuesday 19th April 2016 Commons Chamber

[Mr Walker]

My hon. Friend makes a good point. As I said, the banks have acted very aggressively, and I shall return to that point in a few moments.

May I thank the Economic Secretary for her time and patience in dealing with this matter? I have been speaking to her about it for four months, and I admit that I have got a little over-excited on occasions. However, she has always maintained high levels of good humour and patience, for which I thank her. It is important to put that on the record.

At this late stage, without the intervention of new clause 9, the directive risks blighting the lives of decent people. They are not just people working in public life and service but, as my hon. Friend the Member for Peterborough (Mr Jackson) pointed out, their partners, spouses, children, parents, siblings and in-laws. The directive is not proportionate.

Even more worryingly, the directive covers the close associates of politically exposed persons. I am aware that one such close associate is a member of the press lobby. He had some problems with an individual savings account and was subject to close questioning by his bank. When he asked the person on the other end of the phone why the bank was conducting itself in such a way, the response was, “Because we understand that you are an associate of the Prime Minister.” Even the media are caught up in this directive, or rather the banks’ de-risking in preparation for its introduction.

The Financial Action Task Force, whose guidance underpins the directive and is repeatedly referred to in it, states:

“For close associates, examples include”—

the House needs to listen carefully to this because it is quite an odd paragraph—

“the following types of relationships: (known) (sexual) partners outside the family unit (e.g. girlfriends, boyfriends, mistresses); prominent members of the same political party, civil organisation”—

that could be the National Trust—

“labour or employee union as the PEP; business partners or associates, especially those that share (beneficial) ownership of legal entities with the PEP, or who are otherwise connected”.

My fear is that, without clear Government-backed FCA guidance, as provided for in new clause 9, the banks, in their rush to de-risk, will continue to draw on the work of the Financial Action Task Force. The Financial Action Task Force states in paragraph 37 of its 2013 guidance:

“there should be awareness that middle ranking and more junior officials could act on behalf of a PEP to circumvent…controls. These less prominent public functions could be appropriately taken into account as customer risk factors in the framework of the overall assessment of risks”.

[Sir Greg Knight (East Yorkshire) (Con)]

The case that my hon. Friend makes is overwhelming. Will he tell the House whether he is aware of anyone who is opposed to what he is trying to do?

[Mr Walker]

I am sure that there will always be people who are opposed to what I am trying to do. That is the nature of society—we live in an open society in which people have different points of view on many issues. The fourth money laundering directive should be about capturing bad people in its scope, not capturing all people. If everyone is thought of as bad, it is very difficult to identify who is actually breaking the law. We want to go after the law breakers, not those people who, by accident, are described or identified as PEPs by banks in this country.

Amendments to Bills (Explanatory Statements)

Debate between Charles Walker and Greg Knight

Wednesday 6th November 2013 Commons Chamber

[Mr Charles Walker (Broxbourne) (Con)]

I beg to move,

That this House approves the recommendation contained in paragraph 21 of the Procedure Committee’s Fourth Report of Session 2012-13, Explanatory statements on amendments, HC 979, noting that the Public Bill Office will assist Members as required in the preparation of such statements.

The motion stands in my name and that of my right hon. Friends the Leader and Deputy Leader of the House of Commons, the shadow Leader of the House and the shadow Deputy Leader hon Member for Dunfermline and West Fife (Thomas Docherty) and my predecessor, as Chair of the Procedure Committee, my right hon. Friend the Member for East Yorkshire (Sir Greg Knight).

I note that I may detain the House into the small hours of tomorrow morning if I so wish. That is a tempting proposition, as I have lots of scores to settle with many colleagues. However, as I quite like getting elected to things I will not, on this occasion, detain the House for long and will make a very short speech. I hope that colleagues will make very short speeches too, and that we can wend our way into the night for an evening of fun, frolicking and frivolity.

The report “Explanatory statements on amendments” is a serious piece of work undertaken, in the main, by my predecessor, and I was lucky enough to inherit it in October last year. The Committee is saying that explanatory statements to amendments are an extremely good thing: they allow for informed debate, and for people to have an understanding of what those tabling amendments are trying to achieve. We have, however, taken a permissive, rather than a prescriptive, view. We believe that the Government, if given the opportunity to do so, will want to do the right thing, and that the right thing is to put forward explanatory statements to amendments. I look at the Chief Whip and the Deputy Leader of the House and see two people totally committed to doing the right thing. They have done the right thing throughout their parliamentary careers—one of those careers has lasted for more than 40 years—and I am certain that that will continue to be the case for what remains of their illustrious parliamentary careers. I note that the Chief Whip is not smiling too much, so I will move on.

[Sir Greg Knight (East Yorkshire) (Con)]

Does my hon. Friend agree that when considering changes to our procedures we should never do anything that might discourage scrutiny? Does he share my concerns that the amendment to the motion, if passed, could act as a deterrent to some amendments being tabled?

[Mr Walker]

One reason for not taking a prescriptive approach is that a disorderly explanatory statement attached to a reasonable amendment—perhaps one tabled in a short amount of time—might lead to it not getting on to the Order Paper, thus restricting debate.

To return to my central point, I believe that Members of Parliament, the Government and the Opposition should want to do the right thing, and I am hopeful that they will do the right thing. If they do not do the right thing, it would be reasonable for the House and the Procedure Committee to revisit the issue in the not-too-distant future.