With this it will be convenient to discuss amendment 94, in schedule 3, page 72, line 8, at end insert—
(1) This section applies where—
(a) a person is determined by the Secretary of State (following a check under 40C(1)) to be a disqualified person;
(b) the Secretary of State provides notification to the bank that the person is a disqualified person under section 40C(3) or 40D(7);
(c) the bank closes an account or prevents an account being operated in compliance with section 40G; and
(d) the determination by the Secretary of State under 40C(1) is found to have been incorrect.
(2) Where subsection (1) applies, the Secretary of State shall pay compensation to—
(a) a person incorrectly determined to be a disqualified person;
(b) any person or body by or for whom the relevant account is operated.
(3) No payment of compensation under this section shall be made unless an application for such compensation has been made to the Secretary of State before the end of the period of two years beginning with the date on which the information resulting from its checks under 40C(1) is provided to the person incorrectly determined to be the disqualified person.
(4) But the Secretary of State may direct that an application for compensation made after the end of that period is to be treated as if it had been made within that period if the Secretary of State considers that there are exceptional circumstances which justify doing so.
(5) The question whether there is a right to compensation under this section shall be determined by the Secretary of State.
(6) If the Secretary of State determines that there is a right to such compensation, the sum of £10,000 is paid.”