Immigration (Designation of Travel Bans) (Amendment) Order 2011

Debate between Baroness Falkner of Margravine and Lord Hunt of Kings Heath

Tuesday 10th May 2011 Grand Committee

[Lord Hunt of Kings Heath]

My Lords, I shall also speak to the Libya (Asset-Freezing) Regulations 2011. Both instruments were drawn to the special attention of the House by the Merits Select Committee, to which I am grateful for its assiduous attention to Home Office statutory instruments.

The Immigration (Designation of Travel Bans) (Amendment) Order 2011, otherwise known as the travel bans order, adds UN Security Council Resolution 1970, issued on 26 February 2011 in response to the situation in Libya, to Part 1 of the schedule to the Immigration (Designation of Travel Bans) Order 2000. The effect of the amendment is to impose travel bans on Muammur Gaddafi, his family and certain Libyan government officials. The helpful Explanatory Memorandum accompanying the SI says that the travel bans order thereby implements the UK’s obligations under the UN resolution.

On 28 February, the Government also laid before Parliament the Libya (Financial Sanctions) Order 2011. The Explanatory Memorandum says that the financial sanctions order implements in the UK the asset-freezing measures in the UN resolution and prohibits any dealing with the funds and economic resources of certain individuals and entities, and making available funds or economic resources to or for the benefit of those persons. The financial sanctions order came into force on 27 February and was accompanied by a letter to the Lord Speaker. Although the financial sanctions order is required to be laid before both Houses of Parliament under the United Nations Act 1946, it is not subject to parliamentary procedure.

The two instruments need to be considered in the context of two other orders, the Export Control (Amendment) Order 2011 and the Export Control (Amendment) (No. 2) Order 2011. The Export Control (Amendment) Order 2011 introduces a new control on the export of uncirculated Libyan bank notes. The Export Control (Amendment) (No. 2) Order revokes the original order and embraces unused Libyan coins as well as unused bank notes. Taken together, these four instruments form a legislative response to the situation in Libya, much of which follows the international response to developments in that country.

I want to make it clear that I do not seek to oppose these instruments; indeed, I support them. However, I thought that it would be useful, and a service to the Committee, if the Minister was in a position to provide further information on the implementation of the instruments. The travel bans order came into effect on 28 February 2011 and the Libya (Asset-Freezing) Regulations came into force on 3 March. I would be very grateful to the noble Earl, Lord Attlee, if he could say how implementation of the instruments has proceeded so far and whether any particular problems have been experienced. I would also be grateful to him if he could say whether other countries are likely to be affected by similar action, given the events that we are seeing in a number of countries in the vicinity of Libya, about which there is great concern. I note that the asset-freezing regulations apply to small businesses. Can the noble Earl tell me how many such businesses might be affected? Perhaps he can also say whether any further action is contemplated against Libya in this area.

Overall, I have prayed against these statutory instruments because they have been drawn to the special attention of the House and there ought to be an opportunity to allow the House to debate these matters. As I have said to the Committee, I do not object at all to what is in the statutory instruments, but it would be good to know what progress has been made. I beg to move.

[Baroness Falkner of Margravine]

My Lords, I thank the noble Lord, Lord Hunt of Kings Heath, for giving us an opportunity to exercise our scrutiny function rather better by putting some very apposite and relevant questions on the table about the statutory instruments. We Liberal Democrats welcome the imposition of a travel ban on Muammur Gaddafi and his family and certain other Libyan government officials, which has allowed the implementation of the UK’s obligations under the UN Security Council resolutions in response to the situation in Libya.

I, like the noble Lord, Lord Hunt, am concerned about the practical implication of the implementation of these statutory instruments. We undoubtedly agree that we must guarantee that the excluded persons watch-list, which will be used both by staff overseas and at UK ports, identifies accurately people who are not to be admitted to the UK, and I hope that any individual who is subject to the ban and who entered the UK by deception, and so is in breach of the travel ban, will be identified and treated as an illegal entrant and will be subject to appropriate action before the jurisdiction of the International Criminal Court, if that applies. I say that advisedly because, having looked at the list of people who are covered by the United Nations travel ban, and given that the International Criminal Court’s criminal prosecutor is expected to make an announcement in September, the months leading up to then will be when these people will attempt to flee to safe havens if they choose to do so.

I am concerned to read that the ban could also be lifted in very limited circumstances, and I wonder whether the noble Lord the Minister will tell us in what circumstances the ban could be lifted here in the UK and what procedures we would go through for it to be lifted. I also wonder whether there has been any record of an individual who is as yet subject to the travel ban and who has been arrested in the UK or who is known to have connections to the UK and might already be here.

On the asset-freezing regulations, I thank, through the Minister, his noble friend Lord Green of Hurstpierpoint for his extensive response to me, in a letter dated 1 April 2011, on the travel order. It clarified a lot of my questions about how the asset-freezing regulations would be implemented in the UK. I am further pleased to note that the UK asset freezes will not be limited to assets that are held only in the name of Muammur Gaddafi, that there are several other designated individuals and that the list continues to be updated.

The issue for me is the extent to which Libyan state entities, or entities that have links to the Libyan state but that might not be official state entities, should be regarded as directly or indirectly owned or controlled by the Gaddafi family acting on behalf of, or on the direction of, members of the Gaddafi family. I know that the Treasury has issued guidance that the financial sector and other persons should bear in mind that Muammur Gaddafi and his family have considerable control over the Libyan state and its enterprises in deciding how to conduct proper due diligence over any transaction that involves Libyan state assets. Although we welcome the guidance, I have to say to the Treasury—I have raised this previously—that it seems to us that UK financial institutions are not really clear as to how to deal with freezing the assets of individuals rather than of readily identifiable state organisations or commercial enterprises. That issue has gone on over the years and I would like to record some concern that Treasury guidance does not seem to be more specific. You speak to people in the banks who tell you that they have very limited means of identifying individuals because the money is laundered in so many different ways before it arrives here. Perhaps we need to invest, through HMRC or some other body—I cannot identify the body—a little more in clearer intelligence about all those front organisations that use the City of London and other European centres to launder assets.

I conclude by saying that it is important to know that those sanctions and regimes differ from one another and from a US sanctions regime, and that people who are involved in moving their assets around, particularly when there are these sorts of asset freezes, are capable of hiring smart white-collar advisers to tell them how to buck the rules in one regime to another. I hope that here in the UK, not least to safeguard our reputation on money laundering, the Government ensure that companies monitor the position and keep abreast of new legislation, new designations and potentially new licences.