Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent assessment he has made of the impact of anti-money laundering regulations on insurance brokering firms that hold client monies in undesignated client accounts.

HM Treasury recently published a review of the Money Laundering Regulations (MLRs) 2017 in June 2022 which assessed the effectiveness of the UK’s anti-money laundering regime. The review noted the challenges faced by businesses that use undesignated client accounts, commonly referred to as pooled client accounts (PCAs), such as estate agents and insurance brokers. The Government has concluded that broadening the circumstances in which simplified due diligence (SDD) can be considered would be beneficial in improving access to PCAs, while still maintaining that SDD can only be done in low-risk situations.

The Government plans to consult on options aiming to address the difficulties in accessing PCAs, including the option of broadening the range of low-risk circumstances in which PCAs may be provided without checks being required on the clients whose funds are held in the account.