Victims and Courts Bill

Lord Garnier Excerpts

Committee stage
Monday 9th February 2026 Lords Chamber

Moved by

[Lord Garnier]

40: After Clause 7, insert the following new Clause—
“Compensation for victims of fraud and other economic crimes(1) The Secretary of State must, within one year of the passing of this Act, lay before Parliament a review of victims of fraud, bribery and money laundering offences.(2) The purpose of the review under subsection (1) is to identify how victims of such economic crimes could be better compensated without such victims needing to pursue civil action.(3) The Secretary of State must provide for a public consultation on the review.(4) In this section “victims of economic crime” includes United Kingdom and overseas victims of complex corruption cases where the harm caused by the offending is not easily quantifiable.”Member's explanatory statement
This new clause requires a review to explore how domestic and overseas victims of fraud, bribery and money laundering offences could be better compensated without the need for civil proceedings to recover their losses or compensation.

[Lord Garnier (Con)]

My Lords, this is not the first time I have argued that this jurisdiction does not do enough to ensure that domestic—but more importantly, overseas—victims of economic crime committed by people or organisations based here are adequately compensated for their losses.

If the last Government and the present one have been less than enthusiastic about my proposals, I have received support from, among others, Sam Tate, a partner of the London law firm, Clyde & Co, other legal practitioners who have read my speeches and articles on this subject over the years, and from Sam Hickey, a lawyer qualified in Australia and the United States, in his paper entitled Compensating the Victims of Foreign Bribery: UK Legislation, Practice and Recommended Reforms, published in February 2025 by the International Centre for Asset Recovery, which is part of the Basel Institute on Governance, at Basel University in Switzerland.

Having been the initiator politically of the deferred prosecution agreement—DPA—system in this jurisdiction, and as a vocal advocate for the extension of the failure to prevent economic crime regime, and, I should make clear, also as a barrister whose practice includes economic crime cases, I have taken a long-term interest in this aspect of our justice system. It is, regrettably, my experience from the time I was reappointed as the shadow Attorney-General in 2009, then as Solicitor-General during the early part of the coalition Government in 2010, followed by what is now 14 years on the government and opposition Back Benches, both here and in the other place, that all three parties of government—the Conservative Party, the Liberal Democrats and the Labour Party—have acknowledged with warm words the problems my amendment outlines but have not done enough to make the necessary practical changes.

I do not say that the United Kingdom has done nothing, and there is a reasonable case to suggest that we have been at the forefront of efforts to get a grip on foreign corruption. Several of the DPA cases concluded here have involved admitted allegations of failure to prevent bribery overseas, leading to the imposition of serious financial penalties. But when it comes to compensating the overseas victims of these offences, we have fallen short. It is not right that Crown Court judges—and it will usually be High Court or senior Crown Court judges well able to make the necessary assessments with the right evidence who will be dealing with these cases—should feel inhibited by existing statute law and practice from assessing and awarding compensation to the victims I had in mind because the assessment is or may be thought to be complicated. These judges deal with complex points of law and evidence every day, and victims should not be required to take out separate civil proceedings that are expensive in terms of cost and time in order to get justice.

As I said in your Lordships’ House on 7 February 2024, since the introduction of DPAs in 2014, the courts had by then fined corporations more than £1.5 billion for violations of the Bribery Act, yet only 1.4% of that sum had been given to the citizens of victim countries of the indicted corruption. We are therefore open to charges of hypocrisy, because the United Kingdom has been essentially acting as the world’s policeman while keeping the fines for the Treasury.

Sam Hickey in his paper makes six recommendations on how we can improve our performance as providers of just and appropriate compensation to the victims of overseas corruption. Having overburdened the House only last Thursday evening with my thoughts on the need to reform the criminal law of joint enterprise, I will not go into such depth or detail in arguing for my amendment today. But I recommend that the Minister just takes a few minutes to read Mr Hickey’s paper and the basis for his recommendations, even though he kindly makes several references to things I have already said in your Lordships’ House. If the Minister is really short of sleep, I invite her to read my speeches and published articles on the subject—but in any event, Mr Hickey’s paper should be part of the review I am asking for via Amendment 40.

In essence, Mr Hickey and I, both jointly and severally, urge upon the Government—and I have said as much myself several times in this House and in the articles I have written—that we should no longer simply rely on legal principles relating to compensation orders in favour of identifiable human victims in this jurisdiction when deciding whether to include compensation in the terms of a DPA or when sentencing a corporate defendant following a conviction or plea of guilty by the Crown Court. There should be a rebuttable presumption in favour of including compensation in such agreements or following conviction. Where compensation is included in the terms of a DPA, it should be tailored to the facts of each case.

More specifically, the Serious Fraud Office, as the usual prosecutor in cases of this sort, should actively apply for compensation to be awarded to discrete victims who have suffered quantifiable losses. In the case of Glencore, the SFO did not, despite my prompting when I was acting for the Government of Nigeria, seek to apply for compensation. There were legislative problems that prevented the court dealing with it, but at least the judge had the decency to hear my argument before saying, “Thanks, but no thanks”. However, it does seem to me that there should be a preference for compensation to be put toward the benefit of victim communities or societies in the foreign state through, for example, infrastructure projects such as schools or medical facilities, or towards the reduction of national debt. If none of those is possible, compensation moneys should be put towards the anti-corruption initiatives of governments, NGOs or international organisations—as I have suggested in the past, a United Nations ESCO account might be a suitable destination—as a final resort to ensure that some measure of compensation is paid in every case.

In any event, we should legislate for a rebuttable presumption in favour of real compensation. We should, as I have suggested before, consider a variety of methods for calculating the amount of compensation, including a victim’s losses, the value of the bribe, a percentage of the fines and penalties, or the gross profit of the briber. If there are no discrete victims with quantifiable losses, we should look to whichever measure of compensation is the greatest.

We should devise a formal procedure that victims, states and NGOs could use to request compensation. We need to clarify the concepts underlying compensatory practices, including the kinds of remedies available, the harm that might lead to compensation and the victims who might receive it. We also need, as I have said on several occasions before, to incentivise corporations to pay compensation by, for example, subtracting the compensation from the penalty. I accept that it could be said of my argument that repetition never made a bad point better. But I gently suggest that successive government failures to listen to a reasonable argument, year after year, is not evidence of its successful refutation but of a wilful or negligent refusal to see what is in front of them: that is to say, injustice piled on injustice, and corrupt companies being given license to bribe with impunity and to act without concern for their victims because it is happening out of sight and overseas. Amendment 40 is, if I may say so, a moderate amendment in its ambitions—perhaps too moderate—but it is certainly worthy of the Government’s consideration, and I urge them to do so. I beg to move.

[Baroness Brinton (LD)]

My Lords, I have tabled Amendment 46 in this group. In the Commons, it was tabled by Sarah Champion MP, who has long argued for supporting victims effectively and has a particular interest in the function of the Criminal Injuries Compensation Authority. The amendment asks the Secretary of State to amend the criminal injuries compensation scheme to widen eligibility for compensation to all victims of child sex abuse, including online-facilitated sexual abuse, to ensure applicants with unspent convictions are not automatically excluded where offences are linked to the circumstances of their sexual abuse, and to increase the time limit for applications for compensation from victims of child sexual abuse to seven years. I will not give any more detail of that.

The reason for this is that, until the 2012 scheme, a crime was generally considered violent if it involved physical injury, the threat of immediate violence or a non-consensual sexual assault. Those were the ones the compensation scheme could look at. In practice, this means that many cases of online child sexual abuse are excluded, even where the abuse involves sustained coercion, blackmail or domination and the child experiences profound and lasting harm.

We know that victims often face significant barriers in accessing compensation for this reason. There is a problem with the strict time limits that the CICA imposes, because that means that many traumatised victims, who may be navigating complex criminal justice processes and/or are unaware of their eligibility, often struggle to apply in time. The independent inquiry into child sexual abuse report on accountability and reparations recommended extending the time limit for child sexual abuse cases and giving claims officers greater discretion, but these proposals were sadly rejected by the previous Government.

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[Lord Garnier (Con)]

My Lords, I begin by apologising to noble Lords who had other amendments in the group for not addressing their arguments, but I do not think they needed my assistance. I am grateful to my noble friend Lord Sandhurst and to the noble Lord, Lord Marks, for their support for my Amendment 40. As has been pointed out, my amendment asks for a review. I agree with the noble Lord, Lord Marks, that we need to be imaginative and inventive—those were not his precise words, but I think that is the thrust of what he was saying. I suggest that doing nothing, doing a little slowly or patting ourselves on the back for what we might have done in the past are no longer acceptable.

I know that the Minister is sincere in her response. I am also aware of her professional experience, both in private practice and at the Crime Prosecution Service, and I look forward with gratitude to our meeting. I am aware of the terms of the 2002 Act to which she referred, but it does not meet the problem I have identified, as I know from my own professional experience. Furthermore, the provisions of FiSMA are untested, or insufficiently tested in my view, and I am not sure that reliance on that statute answers the problem we have been discussing. The review that the Minister spoke about is not due to report until 2027. Everything is always tomorrow, the week after, the month after or the year after; nothing is ever grabbed now and answered. This is my experience, having spoken about these questions for many years in the past, so I ask the House to forgive me if I come across as cynical.

That said, I look forward to having a positive discussion with the Minister during the Recess.

[Baroness Levitt (Lab)]

After.

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[Lord Garnier (Con)]

After? There we are: a week after, a week after, a week after. The great god Delay is the one we all worship—for goodness’ sake. I thank the Minister for the meeting, but I think we spoke about this meeting before Christmas at Second Reading and it has slipped and slipped. I feel like an ice skater who is running out of bad jokes. I thank her for her forbearance. I know she is relatively new to her post and will not have had the joy of having to deal with my repetitive strain injury over the last several years. Anyhow, let us try to make some positive advances, produce some practical answers and not just push this thing further down the road, because there are victims out there whose lives have been ruined by corrupt criminal behaviour. I appreciate our Treasury should be in special measures, but it has been sucking in all this money in London, whereas people in sub-Saharan Africa and elsewhere are suffering. Having got that off my chest, again, I beg leave to withdraw my amendment.

Amendment 40 withdrawn.