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1176208

registered interest
date	04/02/2020
answering body	Treasury
answering dept id	14
answering dept short name	Treasury
answering dept sort name	Treasury
hansard heading	Money Service Businesses
house id	2
legislature	25277 pref label House of Lords
question text	To ask Her Majesty's Government (1) how many inspection visits HMRC made to money service businesses registered with them in each of the calendar quarters from 1 January 2017 to 31 December 2019; and (2) how many of any such visits per quarter led to (a) de-registration, (b) disciplinary action or (c) closure of the business.
tabling member printed	Lord Myners
uin	HL1328
answer	answer is ministerial correction date of answer 19/02/2020 answer text <p>HM Revenue and Customs (HMRC) takes appropriate and effective enforcement actions against Money Service Businesses (MSBs) who fail to comply with the money laundering regulations. However, we consider that releasing the specific number of investigations and visits made to businesses in different sectors could enable opportunists to identify where resource is being focused, allowing criminals to arrange their activities accordingly to escape challenge. HMRC are therefore not able to release sector specific numbers on how many inspection visits are conducted against MSBs. The National Risk Assessment 2017 assessed MSBs as high risk for money laundering and terrorism financing and HMRC takes a risk-based approach to prioritise resources.</p><p> </p><p>Across all sectors, HMRC closed around 1,300 onsite cases in each of the financial years 2017/18 and 2018/19. Many of these cases involved multiple visits to businesses and onsite inspection visits are just one of the ways that HMRC monitors supervised businesses. We cannot provide information on the outcomes of inspection visits alone although in the 2019/2020 financial year, HMRC has seen the value of penalties across all sectors triple when compared with the value of penalties issued for the financial year 2017/18.</p> answering member printed Lord Agnew of Oulton question first answered 19/02/2020 10:56:58 answering member 4689 label Biography information for Lord Agnew of Oulton
tabling member	3869 label Biography information for Lord Myners

1176209

registered interest
date	04/02/2020
answering body	Treasury
answering dept id	14
answering dept short name	Treasury
answering dept sort name	Treasury
hansard heading	Money Service Businesses
house id	2
legislature	25277 pref label House of Lords
question text	To ask Her Majesty's Government when they last assessed the risk that money service businesses were involved in the finance of crime and terrorism; what conclusions they reached as a result of any such assessment; and what action they took, if any, to tighten inspection and supervision of such businesses.
tabling member printed	Lord Myners
uin	HL1329
answer	answer is ministerial correction date of answer 19/02/2020 answer text <p>Law enforcement agencies and the statutory anti-money laundering (AML) supervisors monitor the money laundering and terrorism financing risk associated with money service businesses on an ongoing basis. The Government published a National Risk Assessment (NRA) of the risk of money laundering and terrorism financing in October 2017. The NRA 2017 concluded that there was a high risk associated with money service businesses.</p><p> </p><p>The Government recognises the importance of developing and maintaining a robust and shared national understanding of money laundering and terrorist financing risks. The 2020 NRA, which will be published by July 2020, will provide an update on how these risks have changed since the 2017 NRA.</p><p> </p><p>HMRC recognises the risk posed by money service businesses and continues to devote a significant proportion of resources to their supervision. The NECC and HMRC are committed to working with public and private sector stakeholders to further reduce the extent to which money service businesses are used to facilitate serious and organised crime. Aided by a recent increase in supervision fees, HMRC committed as part of the Economic Crime Plan to ensure a robust approach to deliver an enhanced risk-based approach to its AML/CTF supervision by March 2021.</p><p> </p><p>In September 2019, HMRC announced a record fine of £7.8million against a London-based money service business for breaching the Money Laundering Regulations. This fine followed a joint month-long crack down on high risk money service businesses lead by HMRC, the Metropolitan Police and the Financial Conduct Authority.</p> answering member printed Lord Agnew of Oulton question first answered 19/02/2020 11:01:34 answering member 4689 label Biography information for Lord Agnew of Oulton
tabling member	3869 label Biography information for Lord Myners

1176210

registered interest
date	04/02/2020
answering body	Treasury
answering dept id	14
answering dept short name	Treasury
answering dept sort name	Treasury
hansard heading	Money Service Businesses
house id	2
legislature	25277 pref label House of Lords
question text	To ask Her Majesty's Government on how many occasions in the last three years HMRC and the Financial Conduct Authority met to discuss co-ordination of their regulatory supervision of money service businesses; and how many occasions during that period those bodies conducted joint inspections of registered businesses.
tabling member printed	Lord Myners
uin	HL1330
answer	answer is ministerial correction date of answer 19/02/2020 answer text <p>Since October 2019, HMRC have formally met with the Financial Conduct Authority (FCA) at least every month to discuss coordination of their regulatory supervision. Prior to that, meetings took place approximately every six weeks and were used to discuss specific cases and other issues. HMRC and the FCA also have frequent informal contact every few days.</p><p> </p><p>HMRC and the FCA do not operate a dual supervision model. Where a business is authorised by the FCA for Money Transmission only, HMRC are the supervisory authority. Conversely, when a business is supervised for any other activity by the FCA, the FCA are the supervisory authority.</p><p> </p><p>HMRC and the FCA share information and intelligence to assist each other with the supervision and regulation of registered and supervised businesses and work collaboratively to promote supervised businesses’ understanding of the risks they face, their statutory obligations and the implications of inadequately managing those risks.</p> answering member printed Lord Agnew of Oulton question first answered 19/02/2020 10:59:54 answering member 4689 label Biography information for Lord Agnew of Oulton
tabling member	3869 label Biography information for Lord Myners

1176211

registered interest
date	04/02/2020
answering body	Treasury
answering dept id	14
answering dept short name	Treasury
answering dept sort name	Treasury
hansard heading	Money Service Businesses
house id	2
legislature	25277 pref label House of Lords
question text	To ask Her Majesty's Government who is responsible for the regulatory interface between HMRC and the Financial Conduct Authority in respect of money service businesses; and what measures are in place to ensure that individual businesses do not fall between the supervision of either body.
tabling member printed	Lord Myners
uin	HL1331
answer	answer is ministerial correction date of answer 19/02/2020 answer text <p>The Treasury is responsible for appointing Anti Money Laundering and Counter Terrorism Financing supervisors under the Money Laundering Regulations and works closely with them to ensure they deliver the government’s objective of a robust risk-based approach to supervision.</p><p> </p><p>Whilst supervision of the sector is shared between HMRC and FCA, responsibilities on an individual firm basis are clearly allocated to each supervisor and both HMRC and FCA hold registers of entities subject to their supervision. The FCA is the supervisory authority for credit and financial institutions, including money service businesses (MSBs), when they are authorised persons under the Financial Services and Markets Act 2000. HMRC is the designated supervisor for non-financial institution MSBs that are not otherwise supervised by the FCA.</p><p> </p><p>Each supervisor is responsible for reviewing the AML compliance of MSBs under their supervision using a risk-based approach. The registration process for an MSB involves scrutiny of all beneficial owners, officers and managers to determine whether they are fit and proper to hold these positions. Both supervisors have established procedures for working collaboratively on policing the gateway and on the AML supervision of the MSB sector. This is underpinned by a joint FCA/HMRC Memorandum of Understanding and established legal gateways for sharing information and expertise.</p> answering member printed Lord Agnew of Oulton question first answered 19/02/2020 10:59:06 answering member 4689 label Biography information for Lord Agnew of Oulton
tabling member	3869 label Biography information for Lord Myners

1176212

registered interest
date	04/02/2020
answering body	Treasury
answering dept id	14
answering dept short name	Treasury
answering dept sort name	Treasury
hansard heading	Financial Services
house id	2
legislature	25277 pref label House of Lords
question text	To ask Her Majesty's Government (1) whether they, or the Financial Conduct Authority, are monitoring the use by fund managers of forward equity subscription commitments to leverage the gearing of open-end fund portfolios, and what assessment they have made as to whether such fund managers are correctly reporting the existence of such commitments to potential and actual investors in relevant funds; and (2) whether they have reviewed the arrangements made and signed by Woodford Investments as a principal or agent for funds.
tabling member printed	Lord Myners
uin	HL1332
answer	answer is ministerial correction date of answer 19/02/2020 answer text <p>This is a matter for the Financial Conduct Authority (FCA), which is operationally independent from Government. The question has been passed on to the FCA. The FCA will reply directly to the noble Lord by letter. A copy of the letter will be placed in the Library of the House.</p> answering member printed Lord Agnew of Oulton question first answered 19/02/2020 10:57:32 answering member 4689 label Biography information for Lord Agnew of Oulton
tabling member	3869 label Biography information for Lord Myners