Sanctions and Anti-Money Laundering Bill [HL]

Baroness Stern Excerpts

Committee: 3rd sitting (Hansard): House of Lords
Wednesday 6th December 2017 Lords Chamber

Moved by

[Baroness Stern]

69G: After Clause 41, insert the following new Clause—
“Public registers of beneficial ownership of companies in the British overseas territories
(1) For the purpose of preventing money-laundering, the Secretary of State must provide all reasonable assistance to the governments of—(a) Anguilla;(b) Bermuda;(c) the British Virgin Islands;(d) the Cayman Islands;(e) Montserrat; and(f) the Turks and Caicos Islands,to enable each of those governments to establish a publicly accessible register of the beneficial ownership of companies registered in that government’s jurisdiction.(2) No later than 1 January 2019 the Secretary of State must prepare an Order in Council, and take all reasonable steps to ensure its implementation, in respect of any British overseas territories listed in subsection (1) that have not by that date introduced a publicly accessible register of the beneficial ownership of companies within their jurisdiction, requiring them to adopt such a register.(3) In this section a “publicly accessible register of beneficial ownership of companies” means a register which, in the opinion of the Secretary of State, provides information broadly equivalent to that available in accordance with the provisions of Part 21A of the Companies Act 2006 (information about people with significant control).”

[Baroness Stern (CB)]

My Lords, I rise to speak to Amendment 69G in my name and those of the noble Baroness, Lady Kramer, and the noble Lords, Lord Collins and Lord Kirkhope, who regrets very much that he cannot be here. The amendment continues the debates that began in what is now the Criminal Finances Act 2017. It reflects the widespread and continuing concern about how the lack of transparency in the offshore financial centres of the British Overseas Territories—that is, Anguilla, Bermuda, the British Virgin Islands, the Cayman Islands, Montserrat and the Turks and Caicos—enables the corrupt and criminal to find a haven for their ill-gotten wealth.

The publication of the Panama papers in April 2016 revealed information about thousands of questionable financial transactions. Half of the companies disclosed by the Panama papers—around 140,000—were registered in the British Virgin Islands, which we have heard mentioned a number of times today in relation to property transactions. Those revelations brought home to many the highly damaging effects of the lack of transparency in those overseas territories. During the proceedings of the Criminal Finances Bill, a similar amendment to this was debated, which would have required the Government to help the British Overseas Territories to produce publicly accessible registers of beneficial ownership by the end of 2018. Should any of the territories fail to produce such a register, the Government would require them to do so through an Order in Council no later than the end of 2019.

The amendment became victim to the wash-up before the general election, and an alternative government amendment became part of the Act. This requires the Government to,

“prepare a report about the arrangements in place between … (a) the government of the United Kingdom, and (b) the government of each relevant territory, for the sharing of beneficial ownership information … The report … must be prepared before 1 July 2019, and … must relate to the arrangements in place during the period of 18 months from 1 July 2017 to 31 December 2018 … The relevant Minister must … publish the report, and … lay a copy of it before Parliament”.

Considering the impending dissolution of Parliament and the lack of time, the government amendment was very welcome.

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I hope that, with that rather detailed response, the noble Baroness, Lady Stern, will be satisfied that we are making good progress. We are raising this matter at the highest level. Indeed, the intervention of my right honourable friend the Prime Minister underlines how important she considers this issue to be, as did the previous Prime Minister.

[Baroness Stern]

I thank all those who have spoken in support of the amendment and those who have spoken strongly against it. A debate is always very good for the brain. I thank the Minister very much for the information he has given us, for the hard work he has done at the joint ministerial council and for the progress that is being made. It is likely that this matter will be returned to on Report but, for now, I beg leave to withdraw the amendment.

Amendment 69G withdrawn.