Economic Crime: Law Enforcement

Debate between Baroness Hodge of Barking and Kevin Foster

Thursday 7th July 2022 Commons Chamber

[The Parliamentary Under-Secretary of State for the Home Department (Kevin Foster)]

This is certainly an interesting day to be responding to a debate. As is the case with the shadow Minister, this is not my usual field, but I agreed to respond to this debate about a week ago. [Interruption.] It is always nice to have those comments from the Deputy Leader of the Labour party. It is always a pleasure when she joins us.

I thank my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) and the right hon. Member for Barking (Dame Margaret Hodge) for securing this debate, and all the other Members who have contributed. It was good to have the rare chance of hearing from my good friend, the hon. Member for Strangford (Jim Shannon).

We all agree that economic crime poses a threat to the integrity of our economy, and to the security and prosperity of the UK and our allies. Let us not forget the innocent victims who suffer both emotionally and financially at the hands of unscrupulous fraudsters. Economic crime, as outlined by many who contributed, affects more UK citizens more often than any other crime type, and we have heard many examples of that today.

The UK has one of the world’s largest and most open economies, and London is one of the world’s most attractive destinations for overseas investors. Those factors make the UK attractive for legitimate business and contribute to our prosperity, but the Government accept that they also expose the UK to the risk of money laundering via some of those processes.

The public/private economic crime plan published in 2019 provided impetus and direction for our collective efforts in this area, including strengthening law enforcement and increasing domestic and international co-operation. There has been progress in tackling the threat. For example, in recent years we have built some key capabilities, including the creation of the National Economic Crime Centre and substantial reform of the suspicious activity reports regime.

As a number of hon. Members touched on during the debate, we have enacted the Economic Crime (Transparency and Enforcement) Act 2022, introducing reforms to enable law enforcement to take more effective action against kleptocrats who launder their funds in the UK. We have also legislated for a levy on the anti-money laundering regulated sector, which from next year will raise £100 million a year to help us to combat economic crime.

I hear some of the concerns expressed by colleagues about the potentially fragmented nature of the enforcement landscape, yet I would emphasise that that does not mean there is not joint and co-ordinated working between the law enforcement agencies concerned. The ever-evolving and clandestine nature of economic crime requires a multi-agency response, drawing together the relevant expertise, capability and resources to effectively tackle this challenge head-on.

The Government believe that the National Economic Crime Centre plays a leading role in setting strategic priorities for the enforcement response to economic crime and bringing agencies together. The NECC leads intensification campaigns to prevent, prepare for and protect against economic crime and to pursue those responsible for it. Co-ordinated by the NECC, the joint money laundering intelligence taskforce serves as a world-leading model of best practice, enabling tactical and strategic intelligence sharing between the public and private sectors to better tackle economic crime and support high-priority operations. However, we recognise the need to go further, as many hon. Members have set out.

[Dame Margaret Hodge]

I note the Minister’s theoretical description of what happens, but the practice, for anybody who puts any allegation that we get from whistleblowers into the system, is that it just gets passed from one agency to another and it then falls down a black hole and we never hear about it again. While theoretically co-operation and co-ordination take place, in practice they do not. The other thing I would say is that, if in practice the system is working so brilliantly, why are prosecutions and convictions down by so much when we know economic crime is going in the opposite direction?

[Kevin Foster]

We would accept there is a need to go further and certainly, following today’s debate, we look forward to the debates we will have on the forthcoming Bill. From what we have heard today, I think Members across the House will have thoughts, opinions and valuable contributions to make on how we can strengthen our regime, in both its legal construction and its direct impact.

We recognised in the 2021 spending review the need to invest in this area. The economic crime levy, combined with public contributions, is now an overall package of £400 million to tackle economic crime over the next three years. In the wake of Russia’s invasion of Ukraine, the National Crime Agency established a new combating kleptocracy cell specifically to combat corrupt elites, their dirty money and those who enable them to abuse our financial system. We also recognise that we need to further empower law enforcement through the forthcoming economic crime and corporate transparency Bill, which will be designed to tackle economic crime and protect our national security while supporting enterprise. The Bill will include much-needed reforms to Companies House and limited partnerships, with additional powers to seize suspect crypto assets more quickly.

Prime Minister's Role in Creating a Safe Environment

Debate between Baroness Hodge of Barking and Kevin Foster

Thursday 26th September 2019 Commons Chamber

[Kevin Foster]

I am not sure whether I shall be using the “Kiss my Parliament” adage. [Interruption.] Well, I suppose, it is a new take on the famous “Never kissed an MP” T-shirt that some people like to wear. However, my right hon Friend is absolutely right to say that it is not just about MPs; it is about journalists, judges—anyone involved in public life. Some of the comments that have been directed at one journalist this morning would hardly be seen as the top brow of political debate. As I said, though, it is about the Government looking to create an environment that is safe for all to engage in, not just within this House, because ultimately the culture of debate outside this House will be reflected in the Parliament that is elected to be in this House.

[Dame Margaret Hodge (Barking) (Lab)]

Down the years that I have been a Member of this House, we have had memorable and important debates on highly contested issues—on Iraq, when I remember Robin Cook’s speech; on 9/11, when I remember David Blunkett’s speech; on the great crash, when I actually remember Gordon Brown’s speech. When I come into the Chamber today—I think last night was the culmination of a trend—I feel I am coming into a session of the Bullingdon Club. That is what it feels like in here. That culture is set by the leadership; it is always set by the leadership.

The courageous thing that the Prime Minister could have done today would have been to come to this House and explain to us why he thinks that style of leadership is appropriate. In his absence, will the Minister tell us what practical steps the Prime Minister will undertake to set a new culture of leadership that brings this House back to sensible debate on critical issues and makes us the important Chamber that we should be?

[Kevin Foster]

When reflecting on some of the great debates and issues of the past, I sometimes wonder how the political discourse might have been affected if Twitter, Facebook and other social media had existed at that time. That certainly applies to the 1975 referendum.

The Prime Minister and the Government will continue the work that we have already outlined to tackle intimidation, hatred and abuse, and, during the current Parliament, bring back a deal that will deliver the referendum result and finally put the Brexit issue to bed. I hope we can look forward to wide cross-party support for that.