Criminal Finances Act 2017 and Economic Crime and Corporate Transparency Act 2023 (Consequential Amendments) Regulations 2024

Lord Murray of Blidworth Excerpts

Monday 11th November 2024 Grand Committee

[Lord Sharkey (LD)]

We support this statutory instrument but have a few observations and questions. It is clear that more needs to be done to combat fraud, now our most frequent crime. Fraud accounts for around 40% of all crimes in England and Wales, with an estimated 3.2 million offences per year, and was said by the previous Government in February to cost society about £6.8 billion a year. There are, in fact, much larger estimates. The Annual Fraud Indicator estimated that UK annual losses to fraud could be £219 billion in total, with £8.3 billion coming from individuals.

It is also clear that our current armoury needs extending. Both POCA and the Economic Crime and Corporate Transparency Act are either defective or inadequate, or both. It is not surprising that POCA 2002 requires updating—22 years is an aeon when it comes to the more exotic and newer means of being scammed. However, it is rather surprising that the Economic Crime and Corporate Transparency Act 2023, which received Royal Assent on 26 October last year, did not incorporate some of the variations introduced by this SI. The Act did, after all, deal with the seizure of assets, including crypto assets, in its Schedule 8. The Explanatory Memorandum, at paragraph 5.1, says that,

“a huge rise in the use of digital technologies in crypto assets has provided new methods to conduct crime and deposit gains from criminality”.

Paragraph 5.3 says that,

“consequential amendments are required … so that search and seizure are exercisable and effective for the purpose of crypto asset investigations”.

Could the Minister expand on all this? Where were the provisions of the ECCT Act inadequate? What events or information triggered the realisation that the amendment was needed? The fact that the amendments were needed raises the question of what else was wrong or missing from POCA or the ECCT Act. What reassurance can the Minister give us that all the defects in these Acts are remedied by this SI? Do further aspects of either Act need at least an attempt at future-proofing?

I would be grateful for an explanation from the Minister of some of the detailed provisions in the SI. The term “substantial value” is used as a qualifier four times in Regulation 2(4); it is obviously an important qualification. What is the test for

“is likely to be of substantial value”,

and is it the same test—or tests—in all four appearances of the phrase in this instrument? Who decides what the threshold is in each case?

I have a couple more questions about interpretation. Regulation 2(4)(b) inserts new subsection (7G)(a), which refers to

“any other question as to its derivation”.

Does “derivation” here mean provenance, or has it some alternative meaning? The same question applies to the use of “derivation” in Regulation 2(6). Is not the phrase “any other question” in itself extremely wide in scope? What questions, if any, are excluded by this phrasing?

I was pleased to see the attempt at an impact assessment incorporated in the EM. I wondered, however, what weight to give to the assessment of benefits. The range offered is very large, even if the lower bound quoted in the EM, of £107.60, is a misprint of £107.6 million. The difficulty in assessing the usefulness and reliability of these estimates is exacerbated by the qualifying sentences in paragraph 9.2 of the EM, which say:

“The data and assumptions surrounding cryptoassets are limited due to the technology being relatively new and rapidly changing. It is also sensitive, and many figures and police data are not suitable for the public domain”.


This seems rather opaque. Can the Minister say whether enforcement authorities are significantly disadvantaged when it comes to dealing with likely crypto asset issues? Can he be a little less mysterious about that final sentence in paragraph 9.2 of the EM—in particular, is it reasonable to rely on unspecified and apparently secret data whose reliability we cannot estimate or properly qualify? After saying all that, I should repeat that we support this SI.

[Lord Murray of Blidworth (Con)]

My Lords, I apologise to the Committee for not attending promptly. I am glad to say that I welcome these regulations and I very much hope that they will allow the police to act decisively against criminals who abuse our corporate frameworks, ensuring that Britain remains an inhospitable environment for illicit financial activity.

The regulations extend two previous pieces of legislation designed to cover crypto asset investigations. Under the regulations, search and seizure powers will be able to be exercised for the purposes of investigating crypto assets. This is an entirely necessary move, born of the fact that many criminals use new and innovative ways to avoid detection in their illegal activities.

The National Crime Agency’s national asset centre estimates that illicit crypto transactions linked to the United Kingdom are likely to have reached at least £1.2 billion in 2021 and are surely even higher now. Recent figures from the law firm RPC and Action Fraud show that losses from crypto asset fraud increased 41% last year. Can the Minister provide the latest figures on the cost to the UK economy of crypto asset fraud and the number of illicit transactions estimated to be taking place?

Immigration and Nationality (Fees) (Amendment) Order 2024

Lord Murray of Blidworth Excerpts

Monday 11th November 2024 Grand Committee

[Lord Murray of Blidworth (Con)]

My Lords, I welcome this amendment order, which proposes to adjust the fees in relation to certain immigration and nationality services, and in particular the English language qualification process. It is one of the features of the complexities of the system that these kinds of situations arise, and I am not going to be critical of the Home Office for laying an amendment order in these circumstances. It is obviously right that the Secondary Legislation Scrutiny Committee has picked up on a perception that Explanatory Notes did not set out in enough detail the purpose of the instrument. Perhaps the Minister could let us know whether it is proposed to provide revised Explanatory Notes and, if so, when. Perhaps he could also reassure the Committee on the quality of Explanatory Notes, which I know officials in the Home Office strive hard to ensure are accurate and detailed. I am sure that the Minister will take back to the department the message that crystal clarity is required in Explanatory Notes.

Of course, the fees structure is essential in maintaining a secure system of immigration control, and indeed provides an element of being self-funding. That, of course, itself achieves the kind of immigration system that we wish to see and strengthens British immigration policy. Therefore, I welcome the order and would be grateful for an answer in relation to Explanatory Notes.

[Lord Hanson of Flint (Lab)]

I am grateful to both opposition Front Benches for their comments. I find myself in the genuinely strange position of moving an order to rectify something that happened when we were nowhere near the legislation that is being rectified. I hope that both opposition Front Benches will recognise the fact that my honourable friend Seema Malhotra bringing forward this order in the Commons and me doing so in in the Lords are attempting to rectify an issue that was spotted prior to the general election, which would have been brought forward had the general election not been held in July.

I genuinely cannot say with any certainty why the fees for the services were not regulated when they were first set out. The rules relate to the historic nature of the issue and potential changes in a complex interaction of regulations at the time. I do not know why that happened but I am grateful that previous Ministers, with the advice of civil servants who have reviewed this as part of the procurement exercise that commenced earlier this year, have noticed a gap and therefore have asked Ministers to sign off the measures that will close that gap. Minister Malhotra, who is the lead Minister for this area in the Commons, and myself as the responsible Minister here in this House, have both agreed to take this order through accordingly.

I say to the noble Baroness, Lady Brinton, that there are no issues on the quality of the education and training provided under the orders. I am not aware of a slew of complaints about the fee levels in the past. This is simply an order to rectify what was seen to be an illegality. The Committee should welcome that and understand that that is why this order is being brought forward.

The regulations are being laid at the earliest opportunity to begin the process of rectifying the issue that has been identified. I want to assure this Committee that structures and processes are in place to ensure that the fees for new visa routes and requirements are captured in the immigration and nationality fees regulations when associated changes are made to the Immigration Rules. As has been mentioned, we are hoping to bring forward at an early opportunity, we hope before Christmas, the revised fee structure to rectify where we are currently. That will, I hope, set those fees on a proper legal footing and rectify the challenges that we have had to date.

Again, the noble Baroness, Lady Brinton, mentioned the sharing of information between Administrations. I find that hard. I was in Parliament in 2008. I was in the Ministry of Justice then, not the Home Office, but to be honest with her, I cannot really answer on what happened in 2008 in the Home Office with this order and its background at that time. I can simply say to her again that it is unusual for previous Administrations’ paperwork to be passed to a subsequent Administration. It did not happen in 2010 and it is not happening now. I can ask questions of officials and get good responses about issues but there is not an automatic assumption of access to previous papers. That might be something to be considered but that is a far greater sandwich display than we have before us today, if I may put it that way.

I note and take the noble Baroness’s point. However, we have to reflect on the fact that this measure is brought forward as a joint enterprise between two Administrations handing over a baton to rectify a particular problem identified previously, which this Administration are now taking forward.

Both noble Lords asked about the Explanatory Memorandum. Again, it is important to recognise that it was not the best Explanatory Memorandum in place. It is what it is now. The noble Baroness, Lady Brinton, asked about a review. For the Home Office, and for other departments, given the view of statutory instruments and the importance of SIs to both Houses of Parliament, the new Government have asked for a Minister to be appointed in each department with oversight of the statutory instrument process. I am that Minister now in the Home Office, and I have to look at, clear and be held to account for the SIs that come through any part of the Home Office department. They will have to be cleared and signed by myself. That does not guarantee—because we are all human—that something that I see and clear is going to be perfect. But I hope it gives oversight to that process, which we have not had before. The Leader of the House of Commons, Lucy Powell MP, has been clear that both Houses of Parliament need to up their game on the Explanatory Memoranda, the oversight and the accountability of SIs to both Houses. Four months into the job, I ask the noble Baroness, Lady Brinton, to give me space but to hold me to account in due course, as I know she will, on the performance on SIs particularly.

If there are further points that I have missed, I will reflect on them with colleagues and respond in writing, certainly to the noble Baroness, Lady Brinton. I hope that we can agree this order today and rectify the gap that has been identified. I look forward to bringing forward future SIs to continue that process in relation to the meat of this order.

EU Settlement Scheme

Lord Murray of Blidworth Excerpts

Thursday 24th October 2024 Lords Chamber

[Lord Hanson of Flint (Lab)]

The Government have been aware of both the court cases and the challenges that have taken place—that happened under the previous Government. We believe that we are now legally meeting the obligations of High Court judgments and of the status scheme that was implemented following the withdrawal agreement. However, obviously we keep that under review. We are also aware of the challenges mentioned by the noble Earl, Lord Clancarty, on digitisation and we are working through to, I hope, meet our obligations to those citizens who have a right now to live, work and indeed in some cases vote in this United Kingdom.

[Lord Murray of Blidworth (Con)]

My Lords, the Minister will have discovered that, among his officials, one of the most efficient teams is that which deals with the EU settlement scheme. To what extent are the Government committed to retaining the status review unit, which we set up under the last Government to ensure that those who had obtained EU settled status by deception or had not otherwise met the requirements were dealt with in the appropriate way?

[Lord Hanson of Flint (Lab)]

I hear what the noble Lord has said, and although that is not directly my responsibility within the Home Office, I will refer that to my colleague who works in the House of Commons and who has direct responsibility for this area. However, I hope I can reassure the noble Lord by saying that there have been 8.1 million applications to June of this year, 7.9 million applications have been concluded, and the overall refusal rate is only around 9%. Very often, those are for reasons which this House will accept: due to criminal records or criminal behaviour. So, I hope the scheme is working well. We need to monitor it, it will be ever-changing, and I will certainly take back the points that the noble Lord made.

Refugees (Family Reunion) Bill [HL]

Lord Murray of Blidworth Excerpts

2nd reading
Friday 18th October 2024 Lords Chamber

[Baroness Hamwee (LD)]

My Lords, perhaps I should start my speech with, “As I was saying,” given that this is the fifth such Private Member’s Bill from these Benches since 2017. My noble friend Lady Ludford introduced numbers 3 and 4.

I declare an interest as a trustee of a trust established by the noble Baroness, Lady Neuberger, which has introduced me to a number of young asylum seekers applying for funding to attend university. Like so many young refugees I have met, they have impressed me by their resilience and their determination to contribute to the UK.

The first purpose of the Bill is to provide in primary legislation, not just in amendable rules that can be changed without Parliament’s involvement or scrutiny, the rights of people who seek safety in the UK to be joined by their family. It is not enough to hope that the Home Office will use its discretion. The second purpose is to define “family”. It is an unambitiously narrow definition, in the hope that the Government will see this extension to enable children to sponsor immediate family to join them as modest and doable—she says looking straight at the Minister. The right to sponsor applies to people with protection status—that is, refugees—and those with humanitarian protection who are at real risk of harm if returned to their country of origin but not for the specific reasons which bring them within the refugee convention. I shall refer to them all as refugees. The third purpose is legal aid.

Since 2017, when the first Bill was introduced, the plight of refugees has not changed, nor have the UK’s moral obligations or the importance of family, which politicians continue to emphasise. However, the political context has not stayed still: the areas affected—afflicted —by conflict; the greater politicisation of immigration; the conflation of asylum and immigration; and small boats have succeeded the lorries and trains used by desperate asylum seekers. Last year, 7% of asylum claims were from unaccompanied children. The academic think tank UK in a Changing Europe reports that 33% of the public think that the figure is not 7% but 40% or more. There is a huge leadership role for government to be clear here.

This Bill sits squarely within calls for safe routes for refugees; I acknowledge that we have some, mostly very specific. I acknowledge that, under the new Government, families separated during the evacuation from Kabul airport will benefit from an expansion of the ACRS and that a child evacuated without his parents will be able to make a referral to relocate them or—GOV.UK says “or”—his siblings. But there is so much more to do to put safe routes in place.

Today is Anti-Slavery Day. We know the dangers of being in the hands of traffickers—a very real risk for children alone—and of extreme exploitation. The organisation Missing People is clear that being missing very often means harm. I hope the noble and learned Baroness, Lady Butler-Sloss, with her experience, will expand on this. Her report seven years ago found that closing off safe routes feeds the trafficking and smuggling networks.

Last year the Justice and Home Affairs Committee of your Lordships’ House, which I had the privilege of chairing, published a report on family migration. We were all affected by the evidence about children seeking asylum. A young Eritrean reached the UK alone after the sort of journey that is hard to imagine. His brother made it to Libya, which is not a good place to find yourself; he was picked up by traffickers. His sister was picked up at the border of Egypt and imprisoned there for two years. That committee is one of a number—in the Commons too—to have called for an extension to family reunification.

The Government’s response was:

“Our policy is not designed to keep child refugees away from their parents, but in considering any policy we must think carefully about the wider impact to avoid putting more people unnecessarily into harm’s way”.


Well, they are in harm’s way at home. There are plenty of “push factors”, but that Government often deployed the “pull factor” argument. As the noble Lord, Lord Kerr of Kinlochard, has said, it is “inherently implausible”. That Government’s attempts at deterrence in other contexts were not notably successful. We cannot prove a negative, but various respected organisations have reported that they cannot find support for the contention. It does not seem to me a compelling argument; indeed, there is evidence of children not wanting the Red Cross to trace their family in their country of origin for fear of endangering them.

What is compelling is the importance of family. They may not always be perfect, but being separated from your parents in childhood tends to have a significant impact on your mental health and well-being, indeed your very development. I know that other noble Lords will refer to the Convention on the Rights of the Child, as well as the European Convention on Human Rights. Siblings, too, are hugely significant; what a difference it must make in a strange country if you are with your brother or sister.

Our rules reflect a very westernised view of family. In many cultures, it is common for children of both sexes to live with their parents until marriage, and for three or four generations to stay together as a unit. Dependants are not as limited a cohort as we think of them. I have been urged to add more relatives to the list, and I well understand that; my own aunts were hugely important to me. I have said that the Bill is deliberately unambitious but, under it, the Secretary of State could add to the categories: criteria would include risk to physical, emotional or psychological well-being, and the interests of the child. I have heard the term “unexpressed grief” in connection with mental health, and “the freedom to be a child”.

There are benefits to society of supporting the integration of refugees. A moment’s thought will confirm what being settled means, in the non-technical sense, for refugees and for the rest of the population. It means stability; you can focus and achieve. If you are a child, you can focus on your education rather than being one of those described as “challenging” because you are always on edge, hoping your mother might be able to phone you.

Would there be a cost to the UK? Common sense tells me the contrary. Parents can take care of their children. We all know of the costs to local authorities of looking after children they are required to accommodate and support.

[Lord Murray of Blidworth (Con)]

Will the noble Baroness give way?

[Baroness Hamwee (LD)]

I am time limited, like others, but I give way.

[Lord Murray of Blidworth (Con)]

Perhaps the noble Baroness could inform the House how many people she envisages, on an annual basis, would be granted refugee family reunion status under these measures.

[Baroness Hamwee (LD)]

I will not go into that now; I do not have it in my speech. I am time limited and conscious of other people’s need for that time. I will happily tell the noble Lord later. From the tone of that question, he obviously opposes what I am saying. I will go into that with him later, but he does not have his name down to speak.

In 2018 the UK Government requested information from EU member states about the impact of their family reunion policies. The UK is quite an outlier in Europe. There was little assessment about public services or the costs to Governments, but Italy reported that it had seen no financial effect on public resources. If the noble Lord who has just intervened is worried about numbers, he might think about costs, which are another factor. I can tell the noble Lord that the Refugee Council and Safe Passage estimate an additional 240 to 750 visa grants—not sponsorships—a year.

I turn lastly to legal aid. Yes, of course, there is a shortage of lawyers, but family reunion needs to be in scope. Exceptional case funding is so exceptional as to be well-nigh invisible. The current rules are a maze, almost impenetrable to applicants and to many lawyers.

I urge noble Lords to see this Bill all the way through, and the Government to accept what it provides. At the last iteration, the Labour Front Bench was very supportive. I will not name the spokesman for fear of embarrassing him, but he was very senior.

I have received a lot of support from outside the House. The International Rescue Committee says that it

“welcomes and strongly endorses this Bill which would see children and young people, who have fled conflict and persecution, finally reunited with their loved ones in the UK”.

In 2020, 14 children from a London primary school who had read the book The Boy at the Back of the Class—I commend it to noble Lords—told me how sad they were about the plight of lone refugee children. The boy at the back of the class was an unaccompanied asylum seeker. They were happy, though, that the book had a happy ending. In fact, the fiction involved the intervention of the late Queen Elizabeth. One child wrote:

“It must be very scary … to be in a big new country surrounded by new people. A strong country like ours can help”.


I beg to move.

Illegal Migrants

Lord Murray of Blidworth Excerpts

Wednesday 9th October 2024 Lords Chamber

[Lord Murray of Blidworth (Con)]

My Lords—

[Baroness Hoey (Non-Afl)]

My Lords—