Royal Bank of Scotland: Fees and Charges:Written question - 141717

Q
Asked by Bill Wiggin
(North Herefordshire)
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Asked on: 08 May 2018
Treasury
Royal Bank of Scotland: Fees and Charges
Commons
To ask Mr Chancellor of the Exchequer, what steps he is taking to prevent Royal Bank of Scotland from charging additional fees to companies employing politically exposed persons.
A
Answered by: John Glen
Answered on: 15 May 2018

Decisions on fees and charges are a commercial matter for firms. However, the Financial Conduct Authority (FCA) requires firms to treat their customers fairly, and has broad and robust powers to enforce breaches of its rules.

The latest Money Laundering Regulations are clear that firms must apply a risk-sensitive approach to identifying politically exposed persons (PEPs) and then applying enhanced due diligence (EDD) measures appropriately. This extends to assessing the circumstances in which the beneficial owner of a company is a PEP.

The FCA has published guidance on how firms should identify and apply EDD measures to PEPs. This makes clear that UK PEPs should be treated as a low risk of money laundering, unless an FCA-regulated firm assesses that other risk factors not linked to their position as a PEP mean they pose a higher risk.

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