Mortgages: Members
The question
To ask the Chancellor of the Exchequer, whether (a) her Department and (b) the Financial Conduct Authority has issued guidance on anti-money laundering checks when hon. Members take out a mortgage.
Answered by Rachel Blake
Under the Money Laundering Regulations (MLRs) all members of both Houses of Parliament are defined as politically exposed persons (PEPs), and therefore subject to enhanced checks when accessing financial services, including mortgages.
However, these checks must be proportionate to the level of risk, and changes to the MLRs in force since January 2024 are clear that the starting point for regulated businesses must be to treat domestic PEPs as inherently lower risk than non-domestic PEPs. This is reflected in guidance published by the Financial Conduct Authority, which also takes into account the FCA’s review of the treatment of PEPs published in July 2024.
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