Anti-corruption Strategy

Debate between Baroness Stern and Lord Young of Cookham

Monday 10th July 2017 Lords Chamber

[Lord Young of Cookham]

I am grateful to my noble friend, who played a significant role when the then Criminal Finances Bill was going through the House in ensuring that we had the unexplained wealth orders in the right shape. That legislation hit the statute book on 27 April. We are now preparing statutory guidance, subject to the affirmative procedure order, and introducing new court rules and training for officials so that we get the orders in good shape before they are introduced. We remain committed to a register of beneficial ownership of foreign companies that own or acquire property in this country. Good progress is being made. BEIS submitted a consultation document earlier this year, and it is now analysing the responses. I say to my noble friend that we are determined to honour the commitment to introduce such a register.

[Baroness Stern (CB)]

My Lords, the Minister will know that four senior executives from Barclays Bank are facing criminal prosecution for wrongdoing that took place in the financial crisis of 2008, and that this is the first such prosecution. The director of the Serious Fraud Office, whom I hope the Minister will confirm will remain in his place, has repeatedly called for reform of UK law on criminal corporate liability to make it easier to prosecute private companies involved in wrongdoing. Could the Minister tell the House when the Government intend to reform the UK’s very weak laws on corporate liability, so that companies can be held to account for actions that facilitate money laundering of the proceeds of corruption?

[Lord Young of Cookham]

I cannot give a substantive reply to the noble Baroness, but I would like to write to her. I think I am right in saying that recently, companies have been prosecuted. For example, I think that Rolls-Royce as a company entered into a deferred prosecution agreement and, as a result, paid a penalty of over half a billion pounds—and that was for the company. I am cautious about saying anything more, because I understand that individuals are also under investigation by the SFO. I am afraid that I cannot comment on the question she raised about the personnel at the SFO, but I will make inquiries and write to her.