Government to review rules governing Pooled Client Accounts

In a debate on Business Banking: Undesignated Client Accounts, the Government 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.

The full debate can be seen here, and government minister Kelly 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.



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1 Comment

  1. David Price

    One client accout monthly fee circa £10, 100 client accounts monthly fee circa £1,000. Makes a lot of sense from the bank’s perspective.

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