Global Anti-Corruption Sanctions

Baroness Bennett of Manor Castle Excerpts

Tuesday 27th April 2021 Lords Chamber

[Lord Ahmad of Wimbledon (Con) [V]]

My Lords, we take the recommendations seriously and will ensure that, as has been suggested, they are fully evaluated to see how we can further our own domestic regime to ensure that the issue of money laundering can be tackled head on.

[Baroness Bennett of Manor Castle (GP) [V]]

My Lords, I congratulate the Minister on the Statement being open in acknowledging the attraction of the City of London to

“corrupt actors who seek to launder their dirty money through British banks or through businesses.”

As welcome as the individual sanctions announced on Monday are, they are very much one-sided. They target those who take the money, robbing poor communities and global south nations. But of course the ultimate robber barons in the sadly common case of bribery, and those who profit most from the transactions, are those who pay over the money for the favours purchased —they would not pay unless it paid them, often handsomely. So will the Government be actively seeking to identify and sanction those on both sides of these transactions?

The noble Lord, Lord Collins, asked about parliamentary nominations of possible sanctions. Beyond that, will the Government implement a system whereby non-governmental actors, be they from civil society, the private sector or beyond, can submit information about potentially listing targets for consideration, including by creating a secure portal and adequate safeguards to mitigate any risk for those submitting that information?

[Lord Ahmad of Wimbledon (Con) [V]]

The noble Baroness makes some practical suggestions, which I will of consider. On her second point, we are already working with civil society organisations, as well as other actors beyond Parliament. If people put forward the names of certain individuals who should be designated under either the global anti-corruption sanctions regime, which we have just introduced, or the global human rights sanctions regime, we will give them due consideration.

I note what the noble Baroness says about creating portals. The challenge will remain, with increasing cyberthreats and cyberattacks, to ensure not just the robustness of the system provided but that, for anyone being looked at to be designated, an early warning does not result in them being able to abscond or avoid being subject to the sanctions that are intended to be applied to them. Therefore, we keep quite a tight rein on individuals or organisations that will be sanctioned in the future. But I note the noble Baroness’s practical suggestions and will take those back.

I add that we are going through an evolutionary process on the whole concept of sanctions. Two years ago, we did not have anything in this space on the specifics of the framework of sanctions. We now have two distinct sanctions regimes, and I am sure we will see the strengthening of both over the coming months and years.