Turkish Incursion into Northern Syria

Anneliese Dodds Excerpts
Tuesday 15th October 2019

(5 years, 2 months ago)

Commons Chamber
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Dominic Raab Portrait Dominic Raab
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I cannot verify that precise figure, I am afraid—I would want to check the best information that we have. We are working with our international partners. We have given a very clear message to Turkey about what we expect, and we will obviously have to keep the situation under review. There is no point in kidding ourselves that the action of Turkey has not made things more difficult in relation to foreign fighters that are held in detention—it has—and we will have to work with our international partners, above all in the interest of making sure that we protect UK security.

Anneliese Dodds Portrait Anneliese Dodds (Oxford East) (Lab/Co-op)
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I could not work out from what the Secretary of State said whether the UK had advocated sanctions at the EU level and that that had been countermanded by other countries —whether we had played that sort of leadership role or whether there was a more consensual process. It would be really helpful to understand whether his Government will continue to pursue sanctions at the EU level, if that is indeed their policy. If so, which mechanisms will he use to try to advance that? When will his Government abandon their policy of only helping EU citizens when they leave Syrian soil? Obviously, unaccompanied minors cannot do that on their own. Which exact mechanisms exist in the region to have that justice for those potentially guilty foreign fighters that he referred to, because I cannot see any?

Dominic Raab Portrait Dominic Raab
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I share many of the concerns that the hon. Lady expressed. On the UK position, clearly within the EU there are different views on precisely what action should be taken. We joined the conclusions condemning Turkey’s military action. As I said, we will keep the issue of sanctions under review. On balance, the EU decided against going down the sanctions route at this stage, given all the competing considerations that I set out, but we have said that we need to continue as an international community to make efforts to resolve this, including through the UN Security Council.

Amazon Deforestation

Anneliese Dodds Excerpts
Monday 7th October 2019

(5 years, 2 months ago)

Westminster Hall
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Daniel Zeichner Portrait Daniel Zeichner
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The hon. Gentleman makes an important point: there has been progress. The problem is that something has happened. That is what I will come on to.

The threat of natural loss as a consequence of these changes is very real and is under way, but the political situation that underpins this issue deserves careful and considered attention because, as the hon. Member for North Wiltshire (James Gray) pointed out, something has changed. It is hard not to conclude that the environmental damage is a direct consequence of a change in policy direction and political attitudes.

That brings me to President Bolsonaro—clearly a controversial figure, although by no means the only controversial figure on the world stage at the moment—whose attitude to climate change is worth highlighting. Back in December 2018, at the 24th conference of the parties to the United Nations framework convention on climate change, the Brazilian Government promised that their carbon emissions would decrease by 37% by 2025, and by 43% by 2030, compared with 2005 levels. However, since President Bolsonaro took office in January there has been a clear change. He is widely considered to be sceptical of actions to curb climate change, and in his election campaign he said he would take Brazil out of the Paris climate change accord—a note, I fear, from the Trump playbook. He has back-peddled a little and has argued that he may not do that so long as Brazil’s control over the Amazon remains intact. I have to say that I do not think these are issues to be negotiated. We should all be working to preserve such an important part of our environment.

This summer the world watched on with huge anxiety as forest fires burned in the Amazon, with many attributing blame to forest clearance policies. The Rainforest Alliance says that satellite data show an 84% increase in fires compared with the same period in 2018. The Brazilian Government deny a causal link, but the disagreement has led to fierce international controversy. It was recently reported that at the UN

“Bolsonaro…launched a cantankerous and conspiratorial defence of his environmental record, blaming Emmanuel Macron and the ‘deceitful’ media for hyping this year’s fires in the Amazon. In a combative 30-minute address to the UN general assembly, Bolsonaro denied—contrary to the evidence—that the world’s largest rainforest was ‘being devastated or consumed by fire, as the media deceitfully says’.”

Similarly, The Guardian has reported that

“Bolsonaro is set to unveil draft legislation that would allow commercial mining in indigenous territories, something currently outlawed, despite overwhelming opposition from voters.”

Clearly there are differences of view, but I find it hard not to conclude that the Brazilian President’s pro-development agenda is having a clear and dangerous impact, and that the clearing of the rainforest will be used to allow further development of mining and agriculture.

If we conclude that we all have an interest in this issue because of the impact on the global climate, the question becomes, “What do we do?” The petition calls for trade sanctions, a measure that the Government have not adopted or advocated so far. The Government state in their response to the petition:

“The United Kingdom shares concerns about deforestation in the Amazon rainforest, and the severe impact on the climate, biodiversity and livelihoods. However, key to tackling these issues is to work with Brazil to find solutions rather than imposing sanctions.”

I am afraid that I must characterise that as a “do nothing” response, or rather a “do a tiny little bit to maybe give us some cover” response, because the Government also stated:

“In response to the recent forest fires, the Prime Minister pledged a further £10 million at the G7 summit on 25 August. This contribution is an expansion of an existing project: Partnerships for Forests.”

The rainforest is burning and the Prime Minister has offered a water pistol—maybe he could have sent an unused water cannon.

Remember the scale of the challenge that we face. The Government’s actions hardly equate to the “rapid”, “unprecedented” and “far-reaching” transitions that the Intergovernmental Panel on Climate Change called for in its report last year.

Anneliese Dodds Portrait Anneliese Dodds (Oxford East) (Lab/Co-op)
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My hon. Friend is making an excellent speech. Does he think that the UK has a critical and special responsibility in this matter? Non-governmental organisations such as Global Witness have shown that much of the deforestation has been backed by companies that often have operations in the City of London, so we should really take more responsibility rather than pretending that it just affects a country many miles away.

Daniel Zeichner Portrait Daniel Zeichner
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My hon. Friend makes an important point on the wider context of Britain’s role on the global stage. I would argue that although we are shamefully withdrawing from our positions of influence on the global stage, we remain important through many of our major companies and should use that influence and position of authority.

Oral Answers to Questions

Anneliese Dodds Excerpts
Tuesday 25th June 2019

(5 years, 5 months ago)

Commons Chamber
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Andrew Murrison Portrait The Minister for the Middle East (Dr Andrew Murrison)
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As it happens, I recently visited a kibbutz very close to the Gazan border, and I saw for myself the effect that such attacks were having on the civilian population, despite Israel’s Iron Dome, which is good but not infallible. We condemn all rocket attacks from Gaza towards Israeli. They are completely unacceptable. While they and other violence like that continues, there is no realistic prospect of peace being forthcoming in that part of our troubled world. We must see the cessation of rockets from Gaza into Israel.

Anneliese Dodds Portrait Anneliese Dodds (Oxford East) (Lab/Co-op)
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T4. Disturbingly, medics dealing with the aftermath of the 3 June attacks in Khartoum have said that, as well as 100 people dying, about 70 women may have been raped. Many of my constituents who have links with Sudan have suggested not only that the Janjaweed should be internationally proscribed—even, potentially, as a terrorist organisation—but that we should apply sanctions to those responsible. Do the Government hear my constituents’ call?

Harriett Baldwin Portrait The Minister for Africa (Harriett Baldwin)
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The hon. Lady can tell her constituents, and indeed the people of Sudan, that we stand with them in their desire for a transition to civilian-led government. As she knows, there have been widespread reports following those horrendous attacks, and we encourage everyone to keep documentation of such atrocities. Justice will come eventually, but I summoned the Sudanese ambassador to express our disagreement with—our real abomination of—what had taken place on 3 June.

Sanctions and Anti-Money Laundering Bill [Lords]

Anneliese Dodds Excerpts
Anneliese Dodds Portrait Anneliese Dodds (Oxford East) (Lab/Co-op)
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I shall speak to amendment 21 and new clauses 8 and 13. I will try to be disciplined, as the Minister was, by keeping my remarks as brief as possible, but I would state that while many of us feel that we have seen some progress in terms of transparency for overseas territories, we need a much broader programme of reform so that we stamp out dirty money from the British financial system.

While the Minister referred to amendment 21, he failed to grasp its significance and intention. As with other Brexit-related Bills, the Opposition have many concerns about the wide-ranging powers that this Bill gives to Ministers, and in particular the way in which it gives Ministers the ability to amend, repeal or revoke legislation through regulations without appropriate scrutiny. We frequently cited Lord Judge in Committee, but it is appropriate that I do so one last time in this Chamber. He was very clear about the dangers of this power. As he said, it gives Ministers

“‘regulation-making powers for this, that and the other’”.

He is a very learned person and, as he put it,

“the secondary will override the primary.”—[Official Report, House of Lords, 17 January 2018; Vol. 788, c. 718-19.]

I do not think that many Government Members could disagree with that. Clearly this is an excessive power. It is not justified by the need for speed, for reasons that were well rehearsed in Committee.

The Government have yet again today maintained that these powers are for the sole purpose of combating money laundering and maintaining a sanctions regime, but we heard just a few moments ago that these issues can be highly contentious. There can be different points of view within our parliamentary system on these matters, and that must be reflected in an appropriately inclusive parliamentary procedure.

The Committee advocated by Her Majesty’s Opposition is necessary precisely because the European Scrutiny Committee will not be operating in its same form after we leave the EU, and our sanctions policy will not be derived from the EU once we have left. That is surely the whole point, so we will need another body that can conduct that scrutiny. We will not want Members turning up on an ad hoc basis to a secondary legislation Committee ill briefed, ill prepared and not expert about the topics at hand. That is why we are making our call, and the arguments for such a body are self-explanatory.

Kelvin Hopkins Portrait Kelvin Hopkins (Luton North) (Ind)
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I am a member of the European Scrutiny Committee, and we do take the view that after Brexit there should be a Committee that can continue to keep an eye on what is happening in the EU, because that will still be important and very relevant to what happens in Britain.

Anneliese Dodds Portrait Anneliese Dodds
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And that Committee has been able to develop its expertise around some very complex issues. We will not have such expertise in the future without the kind of Committee that we are advocating. It will be spread across a range of Departments, as is the case with our sanctions, so there is a need for a group in which expertise can be built up among Members. Surely that is enormously important.

As the Minister said, new clause 8 would bring forward the timetable for introducing a public register for foreign-owned property in the UK, but it would do so only in relation to the Government’s current proposals. It would actually be behind the initial timetable that we were given by the Government for introducing such a register, according to which we should have seen developments last month, given that today is 1 May. I will not rehearse all the arguments made by my hon. Friend the Member for Hornsey and Wood Green (Catherine West).

Alex Sobel Portrait Alex Sobel (Leeds North West) (Lab/Co-op)
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Global Witness has found that there are 86,000 anonymously-owned properties in the UK, many of which are empty. Does my hon. Friend agree that we should legislate so that we will know who owns these properties, and therefore be able to bring them into use by people in this country?

Anneliese Dodds Portrait Anneliese Dodds
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My hon. Friend is absolutely right. I understand that those 80,000-plus properties, which are often owned through secrecy jurisdictions, are the ones that crop up most often in corruption investigations. It is often exactly that kind of property that appears to be used illicitly, and it is enormously important that we get a grasp of this problem. We have seen—through the various laundromat investigations, for example—how British property has been used not only to hide illicitly gotten gains, but to guarantee additional profit, because those properties can be let out, guaranteeing a future income stream.

In that regard, I will give the Government one more opportunity. I have asked them many times to indicate whose side they are on. Are they on the side of the investigative journalists who have shown us so much about the movement of dirty money through our financial system, either through the laundromat investigations or through the Paradise, Panama and Luxembourg leaks papers, or are they on the side of those who want to shut down debate on this matter? It would also be helpful to know whether they think it is appropriate that the BBC and The Guardian are being singled out by the firm Appleby and having legal action taken against them purely because they published information from the Panama papers leaks. They are the only two British companies to be singled out in that way.

Moving back to the substance of new clause 8, the Government initially intimated that they would introduce the register back in April. Instead, it now will not be available until 2021, but we heard nothing from the Minister about why that delay is necessary. Investigative reporters have already created a register of sorts that we can all access on the internet. It was created by journalists at Private Eye and other organisations who matched up Land Registry data with company data. I am not aware of any significant worries about the reliability of that information, so why are there so many concerns in this regard? The Financial Action Task Force is due to report soon on our systems to combat money laundering, and this is not the time to delay any action.

If Ministers feel the need to slow down the process in order to consult the Opposition and produce draft legislation, I can tell them that Labour Members support such a measure. The Government do not need to jump through hoops with this legislation—they can move ahead immediately with our full support—so there is no need for delay. In fact, there is every need for haste. I look forward to hearing whether Conservative Members think that there are genuine reasons for this hold-up, because I do not believe that there are any. There is cross-party support for the original timetable. Indeed, faster progress was urged by Conservative peers when the matter came up in the other place, so I hope that the Government will listen to them and to the Opposition, and deliver this register to an appropriate, faster timetable.

On the question of registers, the topic of trusts has been raised in previous debates as well as this one. In fact, it is covered by an Opposition amendment, and the Minister also mentioned it. Not having transparency for trusts will place us behind developments in the European Union, because there is now consensus at the EU level about the need to ensure that there will be transparency for business-like trusts, so we will be behind the curve on that one. Of course, the coalition Government lobbied against transparency for trusts, and we now know that David Cameron personally intervened to try to prevent it. However, this Government could take a different approach and introduce greater transparency, so I hope that they will shift that position.

On the offence of failure to prevent money laundering, I hope the House will not mind if I briefly ask the Minister when exactly we will see the Government response to the consultation and call for evidence, which ended last year, on the failure to prevent economic crime. Although that process ended many months ago, we still do not know what action the Government will take—we are still waiting. There is no lack of evidence for the need to take action; there is only a lack of will, sadly, and that needs to change.

Our new clause 13 is similar to the SNP’s new clause 2, but it is rather broader, as it deals with trust and company service providers, as well as Companies House. In the previous debate, the Minister for Europe and the Americas rightly drew attention to the fact that the UK was a frontrunner in adopting a public register of beneficial ownership. The Opposition are of course pleased that the Government have accepted the need for such a register for the overseas territories but, as Members on both sides of the House have said, we need to ensure that the information in any such register is accurate, and that is the point about which many concerns have been raised.

I have been in correspondence with the Minister and with the FCA about one particular case, namely that of the so-called Business Bank Italy, in which a number of rather strange figures seem to be involved. One of them gave his title as the Italian translation of “the chicken thief” and maintained that he lived on the “Street of 40 Thieves” in the town of “Ali Babba”. I have tried to find out whether he and those associated with him are being prosecuted, but he has certainly been under investigation in Italy, and some of his associates have been prosecuted for their involvement in the mafia over there.

In contrast, the only person to have been prosecuted— I would also say persecuted—in the UK for submitting false information is Kevin Brewer, who is actually a whistleblower. He created a fictitious company and told the world about it in the pages of a national newspaper, but his prosecution has since been held up as showing the Government’s determination to

“come down hard on people who knowingly break the law”.

He broke the law in order to show that the law was an ass under the current system, and it is a disgrace that he has been prosecuted when others seem to be able to operate with impunity. The right hon. Member for East Antrim (Sammy Wilson), who is no longer in the Chamber, referred to an 85-year-old who was exercising significant control in 25,800 companies, so it is essential that such individuals are investigated.

New clause 13 would require any company formation agent to carry out appropriate due diligence on the beneficial owners of the companies that they are forming. It would cover both trust and company formation service providers, and Companies House, where companies can be directly registered without anyone else being involved in the process. I will not re-run our debates during the Bill’s previous stages, but suffice it to say that rather than providing additional clarity—I say the same of the additional exchanges that I have had with Ministers since—the waters have only been muddied. There is a huge ambiguity about the precise role of Companies House. Some Ministers seem to resist the view that it should be responsible for checking data on the business database, while others say that it should exercise that kind of due diligence and is doing so perfectly well. What I see as a parliamentarian, as do many businesspeople and others who are concerned about the fraudulent companies that appear to be able to operate with impunity, is Companies House sadly being severely behind the curve that has been set by crooks and criminals.

The Minister said that change would be difficult, but it would not. For example, when one registers a company with Companies House, one can enter whatever information one wants in the boxes on the website. That website does not even have the highly technologically sophisticated tool of a drop-down menu, which means that people can enter non-existent addresses, as I just mentioned, suggest that two-year-olds are people of significant control in a company and so on. The situation is ridiculous and dealing with it would not require a huge amount of investment.

We also need stronger action when it comes to the responsibilities of trust and company service providers. There is extensive evidence, most recently revealed by “Panorama”, that existing anti-money laundering legislation is insufficient to deter the money-laundering activity facilitated by some TCSPs.

I have had an extensive exchange of letters with the Treasury, and I am grateful to the Minister for corresponding with me on this subject, particularly regarding the problem of foreign TCSPs registering companies with Companies House. I have been informed by the Government that foreign TCSPs are of lower risk than UK-based ones, despite the fact they are not covered by UK anti-money laundering legislation. I received the latest letter this very morning, for which I am grateful, and it concludes by stating that foreign TCSPs are regulated by their home jurisdictions. That is okay then—they are regulated by their home jurisdictions, so there is no problem. Sadly the evidence suggests quite the opposite.

We have seen some positive moves from the Government today, under enormous pressure from Members on both sides of the House, on Magnitsky clauses and on beneficial ownership registers for overseas territories, but we need appropriate scrutiny of sanctions and anti-money laundering legislation, a return to something nearer the original timetable for foreign-owned property registration, and the exercise of proper due diligence on the information submitted to our companies register if we are really to clean dirty money out of our financial system.

We have to stop crooks, criminals and the corrupt benefiting from our country’s good name. Our Government need to stop obfuscating and start acting.

Alison Thewliss Portrait Alison Thewliss
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I rise to speak to the amendments in my name. I will rattle through them and say why they have been tabled. The primary concern is about Companies House. Very much as the hon. Member for Oxford East (Anneliese Dodds) has just said, we have laid out our serious concerns at all stages of the Bill. It is disappointing to get to this stage and find that the Government are still not listening to those concerns.

Companies House does not have the adequate resources or powers sufficiently to monitor and ensure the integrity of the company incorporation data submitted to it.

Sanctions and Anti-Money Laundering Bill [ Lords ] (Fifth sitting)

Anneliese Dodds Excerpts
Tuesday 6th March 2018

(6 years, 9 months ago)

Public Bill Committees
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John Glen Portrait John Glen
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I am grateful for that challenge. As I set out, the Government would only amend the definition when necessary to meet UN obligations to further the prevention of terrorism. The clause is designed just to give the scope to amend the definition of terrorist financing.

Anneliese Dodds Portrait Anneliese Dodds (Oxford East) (Lab/Co-op)
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It is good to be here with you in the Chair, Mr McCabe. My reading of the Government amendment—maybe I have interpreted something wrong—is that it says,

“or a purpose related to the prevention of terrorism.”

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Alan Duncan Portrait Sir Alan Duncan
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If I can set this out again to the hon. Lady’s satisfaction I hope she will draw a conclusion. Under the UK’s constitutional settlement, matters of foreign policy are reserved to Westminster. This Bill will provide the UK Government with powers to be used in pursuit of the UK’s foreign policy as well as to ensure that our national security is intact and to deal with money laundering. The Bill therefore relates to matters that are accordingly reserved. The devolved Administrations were consulted during the Bill’s preparation, and they have not disagreed with our assessment that the Bill deals with a reserved matter. Amendment 37 would mean that the consent of the relevant devolved Administration was required for any sanctions or anti-money laundering regulations that made a consequential repeal, revocation or amendment to any law created by the devolved Administrations. This would effectively give devolved Administrations veto rights over legislation relating to UK foreign and security policy, or to anti-money laundering policy. That is contrary to the established devolution settlement between Westminster and the devolved legislatures.

With regard to regulations under the Bill, any amendment to laws created by devolved Administrations would only arise as the consequence of the sanctions or money laundering measures under the Bill. Regulations cannot make free-standing changes to devolved legislation. Their primary purposes will always be a reserved matter. Such consequential amendments are entirely consistent with the constitutional settlement, and it would not be consistent with our devolution settlement to give the right of veto to devolved Administrations. Given that the effect of this amendment would be to rewrite the devolution settlement without consulting other devolved Administrations or seeking their consent, I do not agree with it and I urge the hon. Lady to withdraw the amendment.

Anneliese Dodds Portrait Anneliese Dodds
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We have had an interesting exchange of views. The Minister, however, did not explain a couple of things that would be helpful for the Committee to understand. He indicated that there was consultation with the devolved Governments, but did not spell out what kind of arrangements he anticipates in future that might fall short of the requested veto but that could constitute consultation. This is important, because we have just been talking about the fact that money-laundering regulations in particular span a range of Government issues, not all of which are reserved. They cut across a number of different powers and it would be helpful to know whether, for example, he anticipates that these matters would be part of the ongoing dialogue between the Westminster Government and the devolved Governments, and whether there is regular exchange of information.

The Committee has discussed SLPs, and there is huge concern about whether there is sufficient action in Westminster on that. Devolved Administrations have raised the issue, and it would be interesting to know whether that was part of a structured dialogue or whether it was something that occurs in an ad hoc way, and how the Minister anticipates that developing in the future.

Alan Duncan Portrait Sir Alan Duncan
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We have continuous discussions with the devolved Assemblies and, of course, with Scottish Members of this House. Once again, I must make it clear that clause 48 is focused entirely on reserved matters, so it does not affect our devolution settlement in any way, whereas the amendment moved by the hon. Member for Glasgow Central most certainly does.

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Luke Graham Portrait Luke Graham
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Opposition Members have spoken about power grabs, and hon. Members who are not Scottish have raised issues relating to devolved Administrations, but we need to be really clear that this is a reserved area, that there is ongoing dialogue and that Scotland has a voice here in Scottish MPs. That is why we are part of Westminster, which is our Parliament as much as Holyrood is. We need to make it very clear that we are having a discussion, but these powers are reserved.

Anneliese Dodds Portrait Anneliese Dodds
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Will the hon. Gentleman give way?

Luke Graham Portrait Luke Graham
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I will not. These powers are reserved. This is not a power grab; it is a reserved matter. Devolution does not mean “separate”. We are in conversations, and Scotland has a strong voice here in its Members of Parliament.

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Helen Goodman Portrait Helen Goodman
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I am interested that that is the Minister’s perception, but I think there might be a competing perception.

Anneliese Dodds Portrait Anneliese Dodds
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I regret to contradict the Minister, but perhaps there is a slight information gap around the procedure operated by the EU in regard to these matters. There is a blacklist of jurisdictions that have definitely been viewed as beyond the pale by the EU. That has followed a very intensive process of consultation through ECOFIN, which is obviously an intergovernmental mechanism. Countries that are not yet on the blacklist, but about which there are concerns, are on the greylist. I suggest that it would be helpful to look at that list.

I am grateful to my hon. Friend for enabling me to intervene. I made a freedom of information request to the UK Government to find out what they had done to try to remove jurisdictions from the blacklist, and the lobbying they had done in that case, which appeared to reveal that our Government had been active on this matter. So I hope Ministers will update us on what the Government have been doing in relation to this issue.

Sanctions and Anti-Money Laundering Bill [ Lords ] (First sitting)

Anneliese Dodds Excerpts
Tuesday 27th February 2018

(6 years, 9 months ago)

Public Bill Committees
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Helen Goodman Portrait Helen Goodman
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That is absolutely fine.

Anneliese Dodds Portrait Anneliese Dodds (Oxford East) (Lab/Co-op)
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Like my hon. Friend, I am grateful to you for chairing the Committee, Mr McCabe.

I am also grateful to the Minister for his explanation. Very briefly, he referred to the Isle of Man’s treatment under the CHIEF system, but we are moving to the contractual disclosure system—CDS—for customs policies. That should have happened by last year, but it has been delayed and there are many concerns about it. Will the Minister assure me that the Isle of Man will be treated properly in any new customs arrangements, and that is the Government’s understanding of the situation?

Alan Duncan Portrait Sir Alan Duncan
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Although I am not familiar with the exact details of the system the hon. Lady mentions, I think I can say confidently that the Isle of Man will be treated in the way that I described in my previous remarks.

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Hon. Members will be able to consider exceptions and licences on a case-by-case basis when the statutory instruments are laid before Parliament, and full guidance will be issued for all sectors. We will continue to engage with representatives of those different sectors to ensure that any additional sector-specific guidance addresses their concerns. We will publish more information about our policy thinking on how some of the many forms of exceptions and licensing will work under the Bill.
Anneliese Dodds Portrait Anneliese Dodds
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I am grateful to the Minister for that explanation. I shall speak briefly on a couple of points.

First, the Minister helpfully stated that the Government do support NGO operations in countries subject to conflict. Will he be more explicit and state that the Government support NGO operations in countries subject to sanctions? That is exactly what we are talking about now. The concern for many in the development community is that the balance is currently towards a presumption against activities occurring in countries where there are sanctions, rather than that being feasible for those organisations when fulfilling international obligations, as we would expect.

Secondly, on amendment 18 on the fast-track process, I was encouraged by some of what the Minister said but was slightly concerned by the reference to the Government continuing current processes, with the suggestion that those are adequate. I have certainly received information, as I am sure other colleagues have—the hon. Member for Glasgow Central referred to some of this—on the impact of fuel sanctions. I understand that delays in getting appropriate licences and exemptions in relation to sanctions on fuel in Syria have led to farcical situations in which, for example, a hospital was destroyed before it was possible to get the fuel that would serve that hospital. The current system is not working at the moment. I wonder whether we may have more of a focus on not following existing practices, which clearly are not operating adequately.

The Minister suggested that the fast-track process would lead to some kind of inappropriate, one-size-fits-all system where, for example, a need for medicine in one situation could be trumped by humanitarian concerns. Surely medical needs could come under humanitarian concerns? What we are really talking about is the need for a fast-track approach to humanitarian peace-building action that will be interpreted sensitively and intelligently, but which could get away from the current impediments for NGOs.

John Glen Portrait John Glen
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I am happy to address those points. I can of course confirm that NGOs in countries subject to sanctions are still able to access these provisions. On the hon. Lady’s point on the fast-tracking process, and the point on fuel sanctions, I said what I said in response to the amendments, but we are obviously living in a very imperfect situation, with highly challenging environments. It will not be possible to get things right every time, but I think the provisions in this legislation give us the best opportunity to do so. I think I have set out the Government’s position clearly.

Sanctions and Anti-Money Laundering Bill [Lords]

Anneliese Dodds Excerpts
Baroness Hodge of Barking Portrait Dame Margaret Hodge
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I entirely agree. Indeed, if we leave the EU without having implemented reforms that would have an impact on the overseas territories, the EU will blacklist them.

I know that there are many principled Conservative Members—including the right hon. Member for Sutton Coldfield (Mr Mitchell)—who care passionately about transparency, and have championed the cause from both the Back Benches and the Front Bench for many years. I urge them all to make clear to their Front-Bench colleagues that they will support a cross-party amendment setting a clear and reasonable timeframe within which the overseas territories would be required to prepare and launch public registers of beneficial ownership. I hope that the Government will listen to the advice of leading Back Benchers on their own side. Those of us who are involved in campaigning for transparency are not seeking short-term political advantage. What we want is an important, sustainable change that will have a lasting impact on the process of stamping out financial skulduggery, and a considerable impact not just on the United Kingdom’s public finances but on those of the poorest nations in the world.

We can never build a global Britain on dirty money. We will not create a strong economy on the back of being the jurisdiction of choice for every kleptocrat and crook in the world. Our British overseas territories will not prosper over time on the basis of being safe havens for illicit wealth. Transparency is an essential tool in the battle against all financial crimes. Exchanging information behind closed doors, which the Government claim is sufficient, particularly disadvantages the very same countries that suffer the most from financial crime and money laundering, because they have the weakest regulatory agencies in operation.

Relying on regulatory bodies is also very much second best. Even our under-resourced bodies such as Companies House are at best reactive in their work on uncovering financial crimes; there is very little evidence that they are undertaking proactive investigations. Indeed, the constant flow of scandals is strong evidence that the system based on the private automatic exchange of information is not working.

Let us consider the case highlighted recently by Global Witness of the $75 million paid by Glencore to Dan Gertler, a controversial businessman accused of bribing senior officials in the Democratic Republic of the Congo to advance mining interests. The money was originally due to be paid to Congo’s state mining company, but following a secret agreement was paid into one of Dan Gertler’s companies registered in the Cayman Islands. Or let us consider the case revealed in the Paradise papers of Jean-Claude Bastos, who managed Angola’s sovereign wealth fund and was paid more than $41 million from the fund via a secretive British Virgin Islands company. The BVI company was itself owned by a series of secretive offshore companies, but the ultimate beneficial owner was Mr Bastos.

Today’s Guardian contains disturbing revelations that North Korea broke international sanctions aimed at inhibiting the development of weapons by using a network of companies based in our tax havens to acquire millions of dollars-worth of fertiliser, coal and other commodities—our tax havens, undermining our national security and that of other western nations. Secrecy enables wrongdoing.

Ironically, the British Government have accepted that argument, because we are ourselves publishing our national register of beneficial ownership. The standard that we accept for ourselves should be the standard we expect for our overseas territories. To pretend, as the Government do, that the overseas territories are making good progress is nonsense. It was 2013 when David Cameron first demanded public registers; nearly five years later, we are still waiting for a number of the jurisdictions, including Anguilla and the Turks and Caicos Islands, to set up a central register.

Let me take this opportunity to debunk some of the myths that were prayed in aid when this matter was debated in the House of Lords. Raising the spectre of identity theft and personal security risks is wide of the mark. Public registers can have tightly defined case-by-case exemption policies to protect individuals who are genuinely at risk. Ministers claim that no other countries are adopting public registers. Again, that is not true: the EU is currently implementing the fifth anti-money laundering directive requiring all EU members to implement public registers by 2019, including Gibraltar, and we should be implementing that.

Arguing, as Ministers do, that we should not act until others have acted is a wretched excuse. We have been bold in leading the movement to stamp out corruption; we should pursue that course and be proud of it. As the number of tax havens decreases and the noose tightens around the remaining tax havens, our action will make action elsewhere in the world inevitable.

I welcome today’s statement from the Secretary of State for Exiting the European Union that the UK wants to lead a global race to the top in rights and standards. There is no better way of leading that race to the top than by insisting that our overseas territories adopt public registers of beneficial ownership.

Public registers will not undermine legitimate businesses or individuals who want to continue to take advantage of low-tax regimes. They will expose those who seek to hide their money because they have received it corruptly, or who unlawfully evade tax, all too often at the expense of poor people and poor countries.

Anneliese Dodds Portrait Anneliese Dodds (Oxford East) (Lab/Co-op)
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On public registers, is it not also the case that firms that are more transparent are often more successful than those that are not? We see that in the examples of Santander, SSE and many others.

Baroness Hodge of Barking Portrait Dame Margaret Hodge
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My hon. Friend on the Front Bench is completely right.

Finally, while we were all horrified by the destruction wrought by the hurricanes last year, those disasters should never, ever be used as an excuse for allowing kleptocrats, villains and tax evaders to prosper. In a White Paper on the overseas territories published in 2012, the Government stated:

“As a matter of constitutional law the UK Parliament has unlimited power to legislate for the Territories.”

I am urging tonight that the Government use their powers to insist that our tax havens—our overseas territories—put in place public registers in a defined timescale. That is a reasonable demand. Stopping it would create a grim stain on Britain’s reputation as we move to establish credibility in a post-Brexit world.

--- Later in debate ---
Anneliese Dodds Portrait Anneliese Dodds (Oxford East) (Lab/Co-op)
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It is a real pleasure to respond to the debate on behalf of the Opposition. The Bill, as many colleagues have indicated, purportedly aims to provide the UK with an appropriate system to stop the corrupt and the criminal from benefiting from our British financial system. I will first consider the sanctions-related matters before looking at the money laundering matters, although they are of course intrinsically linked.

As with much of the Government’s Brexit-related legislation, many concerns have been expressed about the lack of parliamentary oversight of the Bill’s provisions. As my hon. Friend the Member for Bishop Auckland (Helen Goodman) set out, many positive changes were made when the Bill was discussed in the other place, and they must not now be rolled back in this place. Other matters of concern persist, as indicated by the hon. Members for Glasgow Central (Alison Thewliss) and for East Dunbartonshire (Jo Swinson), and echoed in the calls for clarity from the hon. Member for Huntingdon (Mr Djanogly).

We still lack clarity over the extent to which our sanctions regime will be aligned with that of the EU 27. The evidence is clear that sanctions are more effective when imposed collectively—the hon. Members for Glasgow Central and for Huntingdon made that point very well. I was disappointed by the Foreign Secretary’s comments in this regard, which I thought were contradictory; he simultaneously admitted that unilateralism might not be effective while vaunting the possibilities of a totally independent regime. There are no indications in the Bill of how we will concretely ensure the continued co-ordination that is so necessary in this area.

We heard in the debate some persuasive arguments about the need for stronger commitments in the Bill, not just fleeting mentions, on the necessity for sanctions to target those responsible for human rights violations, particularly those responsible for gross human rights violations, as in the so-called Magnitsky regimes. The right hon. Member for Sutton Coldfield (Mr Mitchell) spelled out clearly the reasons for such an explicit approach. I hope that Government Members will have listened to those arguments.

Finally in relation to the sanctions-related provisions, the hon. Members for Glasgow Central and for East Dunbartonshire mentioned the need to ensure that measures are appropriately calibrated so that they target criminal individuals and terrorists, not legitimate aid agencies and financial service providers delivering legitimate services. It is essential that we have accurate and appropriately granular mechanisms in that regard.

Let me move on to money laundering. I was very pleased, as I am sure were many Members, about the informative and courteous style of debate that we have had on money laundering tonight. I am afraid that is in contrast to the comments on money laundering from the Government when introducing the Bill, which I thought were disturbingly brief. It is clear that the problem of money laundering is getting worse, not better. I will not go into all the arguments and evidence on that now, because that has been done very ably by other Opposition Members, not least my hon. Friend the Member for Ealing Central and Acton (Dr Huq). At the centre of the UK’s problems with money laundering lies a lack of transparency and accountability, both of which are essential if we are to ensure that the criminal and the corrupt do not profit from our leaky financial system.

On the issue of public registers of beneficial ownership in our associated territories, may I say what a powerful tour de force we have had from the right hon. Members for Arundel and South Downs (Nick Herbert) and for Sutton Coldfield? I am sure that the right hon. Member for Arundel and South Downs, as a former Home Office Minister, has a huge insight into the damage being done by the lack of transparency in this area, aiding international criminals. The Government must listen to the uncomfortable truth that he has set out so ably tonight.

My right hon. Friend the Member for Barking (Dame Margaret Hodge) set out how long this process has been running, as the Government requested beneficial ownership registers from the overseas territories five years ago. Many Members have indicated that we have had a slippage from the Government’s initial commitments in this regard. The failure to clean up their act by some of our overseas territories is having a severe impact on their reputation. As someone who has had many meetings with representatives of those jurisdictions, and who supports them tremendously, let me say that it is not their foes but their friends who are arguing for more transparency, because we see the reputational damage that the lack of transparency is doing to them. As my right hon. Friend the Member for Barking said, the Government’s failure to act constitutes complicity. I agree with the hon. Member for Amber Valley (Nigel Mills) that the UK must exercise leadership.

There has also been a lack of clarity from the Government over whether they are minded to follow EU-level developments, particularly the anti-money laundering directive known as AMLD 5. I agree with the hon. Member for Chelmsford (Vicky Ford) about many things—we worked together previously in the European Parliament—but I am afraid I cannot agree with her assessment that we know for certain that the Government will continue to cohere with EU-level developments. The hon. Member for East Dunbartonshire (Jo Swinson) and my hon. Friend the Member for Enfield, Southgate (Bambos Charalambous) explained very clearly why we do not have the clarity that we need.

I think it especially important to focus on the regulation of trusts. Under David Cameron, the Government argued against their inclusion in EU registers of beneficial ownership. The Foreign Secretary claimed that the UK was ahead of the rest of the EU with our register of beneficial ownership, but we have been a drag on the EU when it comes to more transparency on trusts.

Anneliese Dodds Portrait Anneliese Dodds
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At EU level, we have been. David Cameron argued against the inclusion of trusts in EU beneficial ownership registers, but we now have a chance to change. I can see that the Foreign Secretary is appalled by the idea that we might have acted as a drag in that regard, but I am sure that he will be converted to the cause of more transparency.

As the hon. Member for East Dunbartonshire rightly mentioned, it is deeply concerning that the timetable for the foreign-owned property register has slipped so substantially. I take on board what was said by the hon. Member for Amber Valley—we already have a register of sorts, in the guise of Private Eye’s tax haven property map—but that map was created, essentially, by mistake. It was created when the Land Registry released data, by mistake, which was then matched up with Companies House data. The Government should be delivering the register themselves. I appreciate that there should be additional disincentives, but that is not a reason not to act now.

Finally, let me say something about the issue of due diligence in relation to British company ownership. Yes, we do have a public register run by Companies House, but the responses to a series of parliamentary questions that I have tabled have shown that there is little or no oversight of the veracity of the data supplied to it. That is illustrated by the worrying case mentioned by my hon. Friend the Member for Brighton, Kemptown (Lloyd Russell-Moyle), to whom I pay tribute for all his effort to help his constituent. There are not enough resources in Companies House, and there is a regulatory gap in respect of those registering companies with it directly. There are even problems for those who register through company formation providers, many of which have been shown not to be fulfilling their responsibilities. In that context, it may be necessary to launch a pincer movement requiring all such firms to have UK bank accounts: at least they would then be covered by anti-money laundering legislation through the bank account system.

The Financial Action Task Force is due to report next month on the UK’s approach to money laundering and ensuring the integrity of the international financial system. I am sure Members in all parts of the House agree that it would be a huge international embarrassment if the taskforce concluded that the UK Government had chosen not to adopt measures that would help to clean up our financial system. I am afraid I agree with my right hon. Friend the Member for Barking that there are grim stains on the UK’s reputation in this regard.

Let me issue one last plea. I have been very disturbed by the Government’s decision not to defend publicly the journalists who were singled out by Appleby. It picked on British companies, the BBC and The Guardian, which were taken to court after releasing details that were in the public interest. Sadly, the Treasury team—I see that some of its members are present—has not yet been willing to condemn that behaviour. I appeal to Ministers, including those in charge of foreign policy, to do so now, and to confirm that those disclosures were in the public interest.

Counter-Daesh Update

Anneliese Dodds Excerpts
Tuesday 7th November 2017

(7 years, 1 month ago)

Commons Chamber
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Boris Johnson Portrait Boris Johnson
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Of course I am sorry if any words of mine have been so taken out of context and so misconstrued as to cause any kind of anxiety for the family of Nazanin Zaghari-Ratcliffe—of course I am. But the most important thing is that I do not believe—and I have this from the Iranians themselves—that those words had any impact on the judicial process. We are going to work flat out to secure the release of Nazanin Zaghari-Ratcliffe. I am very happy to have been able to make that clarification to the House today, and I am delighted that, as I say, Richard Ratcliffe welcomes the clarification that I have made. If the hon. Lady would pass on my thoughts to her constituents who are the family of Nazanin Zaghari-Ratcliffe, I would be very grateful.

Anneliese Dodds Portrait Anneliese Dodds (Oxford East) (Lab/Co-op)
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It is precisely because many of us have, for many months, been working to try to secure Nazanin’s release that we are so upset about the mistake that has been made. I accept that, perhaps inadvertently, we are aware of the impact of her detention on her and her family, and that that is occasioning the extent of our dismay. This is not an attempt at politicisation; it is genuine upset.

I hope that the Foreign Secretary will now go to look at the website of the Iranian judicial authorities, where his remarks are repeated for all to see. I think it is difficult, therefore, for him to absolve himself of responsibility. We know, and I hope that the Foreign Secretary is aware, that the Iranian authorities do not deal with ambiguity. They need clarity—clear words. Anyone who has engaged with them, as I and many others have done over many months to try to secure Nazanin’s release—we have been critical of them—will be aware of their approach and know that they need clarity. We need six words from the Foreign Secretary: “I’m sorry; I made a mistake.” Please give us those six words now.

Boris Johnson Portrait Boris Johnson
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I say respectfully to the hon. Lady that I think the mistake, the error and the fault lie with the Iranian authorities. It is to them that she should direct her anger.

British Prisoners in Iran

Anneliese Dodds Excerpts
Tuesday 18th July 2017

(7 years, 5 months ago)

Westminster Hall
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Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.

Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.

This information is provided by Parallel Parliament and does not comprise part of the offical record

Alistair Burt Portrait The Minister for the Middle East (Alistair Burt)
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As always, it is a pleasure to serve under your chairmanship, Mr Hollobone. May I begin by congratulating the hon. Member for Hampstead and Kilburn (Tulip Siddiq) on securing this debate? I thank all Members who have spoken—principally my hon. Friends the Members for Henley (John Howell), for North East Hampshire (Mr Jayawardena) and for Hertsmere (Oliver Dowden) and the hon. Member for Leeds North West (Alex Sobel). I also thank the Front-Bench spokespeople, particularly the hon. Member for Leeds North East (Fabian Hamilton), for an appreciation of some of the politics behind this.

I certainly recognise the intense interest in this issue, not only across the parties in this House but among the public in the United Kingdom and beyond. Of course I recognise the deep concern felt about all the cases mentioned today and the huge frustration at the lack of progress. I will try to offer as much clarity as I can and set out what the Government are doing to assist the detainees and their families. I will also explain the limitations on what we can do.

Like everyone else, I wish to see all those mentioned today returned to their families and to the UK. My responsibility and our responsibility is to work in the most effective way we can, in all the circumstances, to achieve that, and to explain what we do and why. I know everyone here would welcome me doing more. I am not sure how much people would welcome me doing something that made life more difficult. That is the dilemma in which we find ourselves.

Let me say what I am trying to do. This issue has been a priority for me since my appointment last month. I spoke to the deputy Foreign Minister of Iran about our prisoners on 21 June and raised the subject again when I met the Iranian ambassador on 6 July. Two days before that, I met relatives of Mrs Zaghari-Ratcliffe, and earlier this afternoon I met the family of Mr Foroughi. At both those meetings I assured the families that I would do everything I could for their loved ones. The families also have round-the-clock access to support and assistance from our dedicated Foreign Office officials. I know how much the officials put into this, and I think the families involved know that as well. There is no intention to keep anyone in the dark about anything. There is a limit to how much information we have, but everything that we can communicate is communicated directly to the families. They have 24-hour access to consular officials, and they and all colleagues here have constant access to me.

Anneliese Dodds Portrait Annaliese Dodds (Oxford East) (Lab/Co-op)
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Will the Minister give way?

Alistair Burt Portrait Alistair Burt
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No, because I want to leave time for the hon. Member for Hampstead and Kilburn to speak at the end. I cannot possibly answer all the questions raised. All colleagues who have a question on the table will get an answer by letter, but I want to address as much as possible of what the hon. Member for Hampstead and Kilburn said.

I want to assure all colleagues that we are doing everything we can for our detainees. Our strategy is based on decades of experience—both our own experience and that of international partners—of dealing with Iran. We judge that approach to be in the best interests of those detained, but we keep it under constant review. If our assessment of the right way to handle this is to change, we would consider any alternative courses of action, but for now we judge the approach we are taking to be the most constructive one.

Our ambassador raises the issue of our detainees with the Iranian authorities at every opportunity; he seeks to secure consular access and to ensure their welfare. The Prime Minister and the Foreign Secretary have raised all our consular cases with their counterparts and have stressed the importance of resolving them as quickly as possible. My predecessor, the right hon. Member for Bournemouth East (Mr Ellwood), discussed the issue with the Iranians on numerous occasions, both in London and Tehran. However, we must recognise that there are limitations on what we can do.

I turn now to some of the questions raised by the hon. Member for Hampstead and Kilburn, starting with dual nationality. Nationality is a key factor. All the British nationals currently detained in Iran also hold Iranian nationality. Questions of nationality are for individual states to decide. Unlike the UK, Iran does not legally recognise dual nationality. It considers our detainees to be Iranian, which has implications for consular assistance, which are set out in the passports of those with dual nationality. Under international law, states are not obliged to grant consular access to dual nationals, which is why our passports state that the British Government are unable to assist dual nationals in the country of their other nationality.

Our travel advice for Iran reiterates that statement and highlights the additional potential risks for British-Iranian dual nationals travelling there. None the less, we try to help dual nationals in exceptional circumstances. In practice, that is often difficult, as we are finding in Iran. We have repeatedly asked the Iranian authorities to grant us consular access to our dual-national detainees. However, as Iran considers them to be Iranian, it does not recognise our right of access. We know that other countries face similar difficulties, but we will continue to press for consular access.

Let me turn to some other issues. On publicly calling for the release of the detainees, we are doing everything we can for them, including trying to secure access to them and to ensure their welfare. However, we do that in the way that we judge is in their best interests, and we assess that the approach we are currently taking is the most likely to be in the best interests of all our prisoners in Iran.

As has been stated, there are new opportunities with Iran’s opening up. Following the destruction of our own embassy there some years ago, a new embassy has opened and new relationships are opening up. It is a complex country with a complex power structure, as the hon. Member for Leeds North East made clear, but I am hoping to take the opportunity—and I am sure the Government are hoping to take it—to explore what this new chance of a relationship with Iran means, both for us and for them. That will take some time, but it provides the opportunity for contacts to be made in a different way from before. That will supplement the efforts already being made on a regular basis to raise the issue by our consular team and by Ministers at the highest level.

Raising the issue can mean a variety of different things, from just mentioning it at a particular time to, following the development of a relationship, an opportunity to go into the issue further. Some of the issues that we consider here are blindingly obvious, such as how a country is seen by others around the world. We understand that very well. Different aspects of the Iranian Government understand some of that, but not others. We want to make sure that they see an issue like this as we see it, so that they can take the steps that we need to see our nationals returned.

Human rights in Iran generally are another key part of the debate, but what do we do about them? The Government take human rights and the rule of law seriously, and the human rights situation in Iran remains dire. I am putting that on the record, so that we in this Chamber, and the Iranian Government and the Iranian ambassador, who will read the account of the debate, will see it and know exactly what we mean. The human rights situation in Iran remains dire, and we are determined to continue to hold the Iranian Government to account. We frequently release statements condemning the human rights situation in Iran and regularly take action with the international community.

For example, we designated more than 80 Iranians responsible for human rights violations under EU sanctions, helped to establish the UN special rapporteur on human rights in Iran and strongly support the human rights resolutions regarding Iran at the UN. We believe that continued engagement with Iran on economic development and openness are the best ways to develop our relationship and will give us better leverage to discuss other issues. We do not pursue trade to the exclusion of human rights and the rule of law; they can be, and are, complementary.

We considered very carefully the invitation to visit Evin prison earlier this month. The decision to participate in the tour was taken because we felt it would provide an opportunity to engage directly with prison authorities regarding the dual-national detainees. We felt that taking this opportunity should be taken, in the best interests of all our detainees and their families. Our consul repeatedly asked to see the British-Iranian detainees but was denied access. The risk of not accepting the invitation was the Iranian authorities saying, “We gave you an opportunity to see the conditions. You didn’t take it. What do you expect?” There are occasions when we are trapped if we do and trapped if we don’t.

Everyone in the FCO who deals with this—the consular team, which has been in constant contact with the families—knows how hard people are being pressed, but the truth is that this is not a matter in the hands of the UK Government to resolve. If it is to be resolved, it has to be resolved by the Iranian regime, and we have to play a part in making sure that we have done everything we can to facilitate that and make it work. There are different approaches to that. There is a public approach, which people can see; it is right that this issue is brought up here and in the most direct way by the hon. Member for Hampstead and Kilburn and all hon. Members who represent those who have been detained, and it is right that this is carried worldwide. However, different groups have different responsibilities, and my responsibility is to do what the Foreign Secretary and I consider to be most effective to secure the return of the detainees to their families. As we can see, that means our having a different approach from that which people might like to see.

All I can say is that, so long as I have the conviction that everything we are doing is as appropriate as it can be and is best designed to get the result we all seek, I will continue to do it. If the Government need to change course, we will, but I will not put an artificial barrier in the way of our progress by doing something that I might subsequently regret. I assure colleagues that we are doing everything we can to seek the result that we all want, but we are doing it in the way that we consider—with our experience of Iran and the experience of those who have worked with Iran for a long time—to be the best way possible. That does not in any way deny the efforts of others to do things in their way and to make sure that the Iranian authorities know how we feel, how the public feel and how the world feels.

We must do the work that we can to ensure the best interests of those who have been detained. That is why we are doing what we are doing, and I pledge to colleagues that I will continue to do what I consider to be in the best interests of those detainees, but I will constantly listen to those with other ideas and to the families, so that we do as much for them as we possibly can.