What is really going on in politics? Get our daily email briefing straight to your inbox Sign up Thank you for subscribing We have more newsletters Show me See our privacy notice Invalid Email

George Osborne has agreed to make MPs exempt from anti-money laundering checks under pressure from moaning Tory backbenchers.

Tory MP Charles Walker claimed MPs and their families were being treated like "African despots".

MPs appear on automatic watch lists of "Politically Exposed Persons" (PEP), used by banks to prevent money being funnelled into criminal gangs or hidden in offshore tax havens.

It means MPs and their families could be subject to extra checks on their bank accounts.

But the Chancellor said banks could go too far and become "disproportionate."

(Image: FameFlynet)

Ministers will now move to exclude MPs from the watch lists in the forthcoming Bank of England bill.

Mr Osborne caved under pressure from influential Tory backbencher Charles Walker, who has been pressing for the change for some months.

Mr Walker, who chairs the 1922 Committee of backbench Tory MPs, last week threatened to table a bill banning curtains if he was forced to publish his tax returns.

Video Loading Video Unavailable Click to play Tap to play The video will start in 8 Cancel Play now

It came after Mr Cameron pledged to publish his taxes , and faces a sleaze probe after admitting he'd benefited from shares in his father's offshore trust.

Mr Walker said "I have no intention of publishing my tax returns. And I tell you what, if we do publish tax returns, because people say nothing to fear, nothing to hide, I'll bring forward a private member's bill in parliament to ban curtains from people's homes.

"On the same basis, nothing to fear, nothing to hid. Why should I have my right to look in someone's home impinged by a curtain.

He warned that the ability of the public to properly scrutinise the financial dealings of public servants "dangerous territory," and urged caution.

He added: "Once we go down the slippery slope, you may well be next."

The outspoken MP also dismissed the controversy surrounding Mr Cameron's tax affairs as "slightly ridiculous."

He sniffed at the "small amount of money" Mr Cameron had made out of the deal, saying it was only "enough to buy a Skoda Octavia."