A debate in Westminster Hall on undesignated client accounts brought by government minister Kelly Tollhurst has resulted in assurances from HM Treasury that action will be taken to improve guidance and reform anti-money laundering procedures if necessary and end the unfair denial of banking services to property agents.
Propertymark is among those that have campaigned strongly on this issue, which has affected a number of agents over several years, to secure straightforward, reliable access to appropriate banking services for property agents, allowing them to operate their businesses efficiently and compliantly.
Tollhurst expressed concern that reputable businesses are at risk of finding themselves unable to trade as a result of their accounts being refused or closed. She quoted evidence provided by Propertymark saying that Lloyds had threatened one of their members with account closure if they continued to use pooled client accounts, which forced the property agent to open and hold individual client accounts for the rents and deposits of every landlord they worked for, and this particular agent was working with over 100 landlords.
Responding, Andrew Griffith, MP, Economic Secretary to the Treasury, stated that pooled client accounts are a vital part consumer protection and that it was wrong to say that PCAs are not eligible for simplified due dilligance, where the risk of money-laundering and terrorist financing is assessed to be low.
Propertymark’s Timothy Douglas commented: “Thank you to Kelly Tolhurst MP for tabling this debate and helping to shine a light on the important issue of banks closing and not allowing undesignated or pooled client accounts. This is an issue that impacts all industries and in particular property agents as was highlighted in the debate.
“It was pleasing to hear the Minister acknowledge the severity of the issue and that they will work to ensure there is better guidance, better clarity and amend regulations where necessary.
“Propertymark will continue to stand up for our members and work with politicians, policymakers and other professional bodies to ensure that the banks are not misinterpreting the rules and all businesses can operate and meet their legal requirements.”
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