Protest Measures
Debate between Roger Gale and Tom Tugendhat(9 months, 2 weeks ago)
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The Minister for Security (Tom Tugendhat)
With permission, Mr Deputy Speaker, I shall make a statement on new Government measures to tackle unacceptable behaviour at protests.
In the aftermath of the horrific attacks on 7 October, many people took to the streets to make their views heard. Many did so peacefully and respectfully. I had the great privilege of marching alongside many people, including some in this House, against antisemitism on the streets of both Manchester and London. Sadly, those protests do not tell the whole story.
Over the past few months, we have all seen disturbing and distressing examples of hateful abuse, of serious damage, and of law-abiding citizens being intimidated and prevented from going about their daily life. The right to protest is fundamental to our democracy, but when we see people hurling racist abuse, desecrating national memorials of great significance to our country, or taking flares to marches to cause disruption and fear, the only reasonable response is outrage and disgust. Tolerating these actions would be radicalising in itself. This Government will not stand by and allow a small minority to incite hatred and commit crimes, undermining our proud tradition of peaceful protest.
Today, the Government have announced a package of measures to put a stop to this criminality for good. Protesters have for too long been able to claim in law that protest is a “reasonable excuse” for criminal behaviour. Blocking roads, preventing ambulances from getting through and stopping people from getting to work or visiting loved ones are breathtakingly selfish acts. The British public certainly do not see an acceptable justification for that level of disruption to their life. That is why we are removing that defence for relevant crimes. Protesters will no longer be able to cite the right to protest as a reasonable excuse to get away with disruptive offences, such as blocking roads.
Through the package that we are announcing today, we will crack down on those who climb on war memorials. In recent months, we have seen cases where individuals have broken away from large protests and scaled national monuments. War memorials belong to all of us. They are the altars of our national grief, and it is clearly not acceptable to disrespect them in that way; it is an assault on the memory of so many who gave their life for our freedom and to defend our nation. Attacking our national memorials goes beyond the legitimate exercise of free speech. We must not give those who commit criminal acts at protests the ability to get away with it by simply hiding their identity.
Once the legislation comes into force, the police will have new powers to arrest protesters at certain protests who wear face coverings to conceal their identity. Those who shout racist abuse and extremist rhetoric will no longer be able to hide from justice. We are also protecting the public by putting an end to people bringing flares on marches. Flares have been used during large-scale protests, and have been fired at police officers, posing significant risk of injury. A new offence will ban the possession of flares, fireworks and any other pyrotechnics at protests. Anyone who flouts the new rules will face serious consequences, including up to three months in jail and a £1,000 fine for those who climb on war memorials.
The changes that we have announced today build on the legislation that we introduced last year to help the police tackle disruption from protests. We criminalised interfering with key national infrastructure through section 7 of the Public Order Act 2023. Since we passed the Act last year, the Metropolitan police have made more than 600 arrests to minimise the disruption caused by Just Stop Oil. On Tuesday, the Home Secretary met policing leaders to thank them for their work, and to encourage the use of all existing powers at their disposal, as well as these new measures, to maintain order at protests. I am very grateful to frontline officers across the country for their efforts and successes in keeping the British people safe during an immensely challenging period. I know that policing these events on a regular basis is both complex and demanding. It takes officers away from crucial work preventing crime and protecting vulnerable people in our communities.
As I have made clear, freedom of expression is vital to our democracy, and this House champions it every day. People must be able to speak without fear, and have their right to peaceful protest protected, but those freedoms and rights are not absolute, for very good reason. There is no freedom to commit violence or intimidation, or to harass others. This country has laws against vocally supporting terror organisations for a very good reason, and last month, the Government proscribed Hizb ut-Tahrir as a terrorist organisation. That group actively celebrated the 7 October terrorist attacks in Israel that led to the rape and murder of many, many people. It is an organisation that has poisoned minds for far too long.
We must, and we will, continue to stand with communities who feel threatened, and ensure their safety wherever they live and work. The Government are sticking to the plan to give police the powers that they need to crack down on crime and keep our streets safe. We will never tolerate hateful, dangerous or intimidating behaviour. We will always put the decent, law-abiding majority first. We will do what is right and fair. I commend this statement to the House.
Tom Tugendhat
I thank my hon. Friend—and he is my hon. Friend—for his support and comments. He is quite right that protecting peaceful protest and the right of free citizens to express their views on our streets is essential to the Government’s mission, and it is one of our priorities. The points that he raises are fair; in some cases, I will have to write to him with more detail, but I will cover some of the areas that I think matter greatly.
On face coverings, my hon. Friend raises important questions about when there might be a legitimate reason for somebody to cover their face. The guidelines and the legislation that we are setting out will cover that, because police officers will have discretion to give an order requiring a face covering to be removed. Those commanding the policing of protests will therefore have discretion over when they ask for that instruction to be carried out.
Secondly, on pyrotechnics, the instruction is quite clear: the measure relates to those participating in the protest. If, particularly around Diwali or Guy Fawkes’s day—not a day that I think anybody in this House would ever celebrate—people who have bought fireworks happen to pass a protest, they will not be caught by the offence. It refers to participation in the protest.
On my hon. Friend’s point about war memorials, he and I know far too many names that have been etched on to those stones. We also know that protests on war memorials can tear open extremely painful wounds that have long been closed. That is why I think the British people, quite rightly, saw the protests on war memorials as so offensive. That is why it is right that the Government act against the small minority desecrating such an important place in our hearts.
On my hon. Friend’s question about counter-extremism, the work being done by Robin Simcox is hugely important, and we are doing an awful lot to tighten up various elements of our counter-extremism policy. Indeed, I hope very much that I will be leaving the Chamber very shortly to have a meeting on that subject. The reality is, however, that it is a very complex subject; the Secretary of State for Levelling Up, Housing and Communities is currently working on a definition of extremism alongside the Attorney General. There is an awful lot that we must do to ensure that groups that pose the danger of extremism are addressed in other ways. That is where cross-Government working has been so important in ensuring that groups are transparent in what they are doing, in who is funding them and in where they are targeting their attention.
Sir Peter Bottomley (Worthing West) (Con)
It is an honour to follow the hon. and gallant Member for Barnsley Central (Dan Jarvis), who has just put a question to my right hon. and gallant Friend the Minister for Security.
Some demonstrations are perfectly acceptable. For example, in my early years as an MP, in order to get a relief road, I escorted mothers and their prams down a major road. We went at three and a half miles an hour, which was faster than the traffic would have gone had we not been there on a demo. It was a Friday evening and people were trying to leave London. We got the relief road.
I also led a march from Speakers’ Corner to Trafalgar Square for the Cambridge Two—two social workers who were wrongly convicted and jailed for helping the homeless.
That is different from the kind of disaster that happens when there are crowd surges, especially if they are created by explosions, be they from firecrackers or other things. I was present at Óscar Romero’s funeral, when 14 people died around me from crushing because explosives or fireworks went off.
I was present at the Heysel stadium in 1985 when 39 Italians were crushed to death. Being able to control demonstrations, which should be held by agreement and understanding with the authorities, is vital for them to be safe.
On a more minor scale, there was a flash protest outside my constituency office yesterday by good-natured people who care about the people in Gaza. Had there been one young worker in that place when suddenly a flashmob appeared around them, it would have been discomfiting. I am sure that that would not be caught by these measures, and nor should it be, but I say to those doing such protests: “Think of others.”
I ask my right hon. Friend to remember a last point about disruption. When there was one of the Just Stop Oil or Extinction Rebellion demonstrations, in which people were allowed to sit around in the streets here—for far too long in my view—I said to one person who had flown in from Vancouver to join the protest that flying halfway across a continent and an ocean to help Extinction Rebellion was odd. I said, “What about the ambulances?” They said, “We’ll let them through.” I replied, “The ambulances are stuck 2 miles away. You can’t let them through. You must let people go about their ordinary business to save lives and for the prosperity of the country.”
I back the Government’s measures, and I hope my right hon. Friend knows that he will have support from across the House and the country for what he has proposed.
Tom Tugendhat
First, I thank the Father of the House for his support for these important measures, and indeed for his entirely correct observation that protest is not only necessary but important across the country. Every day, many protests happen politely, courteously and in ways that make their point without causing the kind of societal harms that, sadly, some cause. His longevity in this place, and indeed outside it, is a blessing to the House. He remembers the funeral of the late St Óscar Romero, whose extraordinary work was an inspiration to millions around the world. My hon. Friend reminds us not only that crying “Fire!” in a crowded theatre is not an expression of freedom of speech, but that, in this context, making an explosion in a crowded area can lead to human tragedy beyond expectation. The co-operation between protesters and the police is incredibly important for the protection of the public.
Tom Tugendhat
As the Scottish nationalists who are represented in Parliament today have chosen to make a point out of this issue, I will just say that many people have protested across the whole of the United Kingdom in many dignified ways. We are seeking to make sure that those across our country who quite rightly wish to exercise their right to protest can do so in a safe and dignified way.
Security Threat to UK-Based Journalists
Debate between Roger Gale and Tom Tugendhat(1 year, 9 months ago)
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The Minister for Security (Tom Tugendhat)
I want to update the House on steps that the Home Secretary and I have been taking to address the concerning activities of the Iranian regime and its operatives in the United Kingdom.
The United Kingdom is committed to defending our freedoms—values that define us and make us who we are—and none is more fundamental than freedom of the press. The Iranian regime’s violent oppression of its own citizens and repeated violations of human rights have shown us who the supreme leader and his enforcers really are. It has murdered its own people and made hostages of others, and the protests that began in September 2022 show that it does not have the support of the Iranian people.
In recent months, the Iranian regime has publicly called for the capture or killing of those holding it to account. That includes very real and specific threats towards UK-based journalists working for Iran International, a prominent Persian-language news channel, and their families. The Home Secretary and I absolutely condemn this outrageous violation of our sovereignty and the attempted violation of the human rights of those journalists. In response, we have put in place an extremely robust range of security measures, including armed policing. However, because of the severity of the threat and the particularities of the site, counter-terrorism policing have advised Iran International to move to a more secure location in the United Kingdom. Until its studio is ready, it has chosen to continue its broadcasting from existing studios in the United States—I assure the House that this measure will be temporary. Until then, I have asked officials to help find a temporary location for Iran International’s UK operations, and we will make sure that its permanent new studio in the United Kingdom is secure. I spoke to counter-terrorism policing this morning to confirm that.
Let me be clear: freedom of the press is at the heart of our freedoms. Tehran’s efforts to silence Iran International are a direct attack on our freedoms, and an attempt to undermine our sovereignty. They will fail. Democracy is as much about journalists and civic activists as it is about politicians. The media must be free to work without fear, which is why this Government have already set up the Defending Democracy Taskforce, and why we will be taking further action in response to these threats. I am not alone in saying this: earlier this afternoon, I spoke to my counterparts in France, Germany and the United States. They all agreed, and spoke of incidents that have targeted individuals in their own countries. When I spoke to Iran International over the weekend, it praised our police; it is right to do so, because only last week, the vigilance of our officers resulted in an individual being charged with a terrorism offence after being arrested near the broadcaster’s office.
None the less, this is clearly an appalling situation. The Government, police, agencies and our allies are working together to ensure that Iran International’s operations will resume, and these threats will not silence us, nor them. I know that this House will wish to express its support for that principle too.
As of last week, we had responded to 15 credible threats to kill or kidnap British or UK-based individuals by the Iranian regime since the start of 2022. Between 2020 and 2022, Iran tried to collect intelligence on UK-based Israeli and Jewish individuals. We believe this information was a preparation for future lethal operations. In 2021, UK police asked partners to share information on Iran-based Mohammed Mehdi Mozayyani, a member of the Islamic Revolutionary Guard Corps who worked to conduct a lethal operation against Iranian dissidents here in the United Kingdom. We know that the Iranian intelligence services work with organised criminal gangs, and I can assure the House and the public that we will go after anyone working with them.
Our partners in Europe and the United States face similar threats, and we are working together to keep our people safe. My call this afternoon with other allies was about co-ordinating action that we will take to protect ourselves and ensure a unified response to these threats. We are strongest when we work with our allies around the world, and the Iranian regime should be in no doubt that we are absolutely united.
Let me be clear that this is a persistent threat. It is not carried out by rogue elements, but is a conscious strategy of the Iranian regime. Our Government will act. My right hon. Friend the Foreign Secretary has already summoned the Iranian chargé d’affaires, and we will be looking at further sanctions on those linked to the Iranian regime. We already have around 300 sanctions in place against Iran, including of the Islamic Revolutionary Guard Corps in its entirety.
Today, alongside international partners, eight further individuals were sanctioned, but our response will not end there. Today I have instructed the Home Office to lead work on countering Iranian state threats, making use of the full breadth and expertise of the Government and our extraordinary and courageous police, security and intelligence agencies. We will target the full spectrum of threats we see coming from Tehran. I will be asking our security agencies to explore what more we can do with our allies to tackle threats of violence, but we will also address the wider threat to economic security from illicit finance and the threat from malign interference in our democratic society.
At home, the Charity Commission will soon report on its statutory inquiry into the Islamic Centre of England, which is accused of having links to the Iranian regime. We must ensure that our police and intelligence agencies have the power to crack down on state threats such as those from Iran, which is why urge the House to back the National Security Bill, which is going through Parliament at the moment.
The relationship we have with Iran is not the one we want; it is not the one we chose. We have a deep respect for Iran’s rich history and for the Iranian people. From the “Shahnameh” to the works of Saadi, the wealth of the nation has been in the words of her people. They taught ethics and governance and the importance of law, but today the tyrants in Tehran have betrayed those great pillars of Persian civilisation and are trying to silence those words and their own people, but they will not be silenced. To the brave Iranian journalists and community here in the United Kingdom, I say that this country, this Government and this whole House stands in solidarity with you against the oppression that you face. Mr Deputy Speaker, let me directly address the Iranian regime, which is responsible for these heinous crimes. We will hold you to account for your blatant violation of our laws and values. We will expose your crimes against the British people and against the Iranian people. We will expose your actions around the world. We will work with our allies to hold you to account, personally. We will act to keep our country safe. I commend this statement to the House.
Tom Tugendhat
I thank the hon. Lady for her comments. She is absolutely right to press me on those issues, because it is absolutely true that this has been ongoing. She is also aware that proscription is a legal instrument, and that therefore there is a natural element of discussion. We do not comment on whether we are going to proscribe; we wait until we have the actions ready to do it. She will understand that we will wait until we have full advice.
What we need to be doing is exactly what we are doing, which is sanctioning individuals. I announced eight further sanctions today. We have spoken about various different actions we have taken, and I am grateful that the hon. Member has quite rightly praised the work of the police and the intelligence services, which have done a phenomenal job in keeping us safe. I am afraid that it is not true to say that nothing has happened since the IR. Since then, MI5, Counter Terrorism Policing and many other agencies of the state have been working tirelessly to keep this country safe, and to defend our values and freedoms.
Mr Deputy Speaker (Sir Roger Gale)
I call the chair of the Intelligence and Security Committee.
Sir Julian Lewis (New Forest East) (Con)
I can confirm what is in the public domain, which is that the committee is undertaking a study of Iran and its security implications, and I will just say that I am cautiously optimistic that various causes of delay in the supply of evidence and the progress of that work are within sight of being overcome.
I would like to add my congratulations to the police and security authorities on the announced foiling of 15 credible threats. What I would like to know, without any prejudice to our future inquiries, is whether the Minister is in a position to tell us anything about the origins of the people making those 15 threats. Were they home-grown, or were they people who had come here from Iran? He does hint at the involvement of criminal gangs, which suggests a franchise. How are people able, in this country, to pose such threats? They know who they are, so it should not be difficult for him, either now or in a subsequent announcement, to give an analysis to this House.
Tom Tugendhat
I hope my right hon. Friend will invite me to his committee, where I will be able to answer these questions more fully. He will understand that I cannot address them on the Floor of the House. His reading of the question, however, is interesting and, as usual, very well informed.
Economic Crime and Corporate Transparency Bill
Debate between Roger Gale and Tom TugendhatWednesday 25th January 2023
(1 year, 10 months ago)
Commons ChamberRead Full debate Economic Crime and Corporate Transparency Act 2023 View all Economic Crime and Corporate Transparency Act 2023 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Consideration of Bill Amendments as at 25 January 2023 - large print - (25 Jan 2023)
The Minister for Security (Tom Tugendhat)
I beg to move, That the clause be read a Second time.
Mr Deputy Speaker (Sir Roger Gale)
With this it will be convenient to discuss the following:
New clause 1—Disclosure of information in the public interest likely to be relevant to the investigation of economic crime—
‘(1) It is a defence to an action based on the disclosure or publication of information for the defendant to show that—
(a) the disclosure or publication complained of was likely to be relevant to the investigation of an economic crime, and
(b) the defendant reasonably believed that the disclosure or publication complained of was likely to be relevant to the investigation of an economic crime.
(2) Subject to subsection (3), in determining whether the defendant has shown the matters mentioned in subsection (1), the court must have regard to all the circumstances of the case.
(3) In determining whether it was reasonable for the defendant to believe that the disclosure or publication complained of was likely to be relevant to the investigation of an economic crime, the court must make such allowance for editorial judgement as it considers appropriate.
(4) For the avoidance of doubt, the defence under this section may be relied upon irrespective of whether the statement complained of is a statement of fact or a statement of opinion.”
New clause 2—Economic crime: power to strike out statement of case for abuse of process—
The court may strike out the whole or part of any statement of case which can be reasonably understood as having the purpose of concealing, or preventing disclosure or publication of, any information likely to be relevant to the investigation of an economic crime.”
New clause 3—Home Office review of the Tier 1 (Investor) visa scheme: publication—
Within a day of the passage of this Act, the Secretary of State must publish in full the findings of the Home Office review of the Tier 1 (Investor) visa scheme which relate to economic crime.”
New clause 4—Offence of failure to prevent fraud, false accounting or money laundering—
‘(1) A relevant commercial organisation (“C”) is guilty of an offence under this section where—
(a) a person (“A”) associated with C commits a fraud, false accounting or an act of money laundering, or aids and abets a fraud, false accounting or act of money laundering, intending—
(i) to confer a business advantage on C, or
(ii) to confer a benefit on a person to whom A provides services on behalf of C, and
(b) fails to prevent the activity set out in paragraph (a).
(2) C does not commit an offence where C can prove that the conduct detailed in subsection (1)(a) was intended to cause harm to C.
(3) It is a defence for C to prove that, at the relevant time, C had in place procedures that were reasonable in all the circumstances and which were designed to prevent persons associated with C from undertaking the conduct detailed in subsection (1)(a).
(4) For the purposes of this section “relevant commercial organisation” means—
(a) for the offence as it relates to false accounting and fraud, “relevant commercial organisations” are defined as—
(i) a body which is incorporated under the law of any part of the United Kingdom and which carries on a business (whether there or elsewhere),
(ii) any other body corporate (wherever incorporated) which carries on a business, or part of a business, in any part of the United Kingdom,
(iii) a partnership which is formed under the law of any part of the United Kingdom and which carries on a business (whether there or elsewhere), or
(iv) any other partnership (wherever formed) which carries on a business, or part of a business, in any part of the United Kingdom, and
(v) for the purposes of this section, a trade or profession is a business;
(b) for the offence as it relates to money laundering, “relevant commercial organisations” are defined as—
(i) credit institutions;
(ii) financial institutions;
(iii) auditors, insolvency practitioners, external accountants and tax advisers;
(iv) independent legal professionals;
(v) trust or company service providers;
(vi) estate agents and letting agents;
(vii) high value dealers;
(viii) casinos;
(ix) art market participants;
(x) cryptoasset exchange providers;
(xi) custodian wallet providers.”
This new clause introduces a new criminal corporate offence for failure to prevent fraud, false accounting and money laundering, by aligning it with other corporate criminal offences.
New clause 5—Identification doctrine—
‘(1) A body corporate commits an offence of fraud, money laundering, false accounting, bribery and tax evasion where the offence is committed with the consent, connivance or neglect of a senior manager.
(2) An individual is a “senior manager” of an entity if the individual—
(a) plays a significant role in—
(i) the making of decisions about how the entity’s relevant activities are to be managed or organised, or
(ii) the managing or organising of the entity’s relevant activities, or
(b) is the Chief Executive or Chief Financial Officer of the body corporate.
(3) A body corporate also commits an offence if, acting within the scope of their authority—
(a) one or more senior managers engage in conduct, whether by act or omission, such that, if it had been the conduct of only one representative, that representative would have been a party to the offence; and
(b) the senior manager who is responsible for the aspect of the organization’s activities that is relevant to the offence — or the senior managers collectively — fail to take all reasonable steps to prevent that offence being committed.”
This new clause reforms the “identification doctrine”, so that a body corporate commits an economic crime offence where the offence is committed with the consent, connivance or neglect of a senior manager or senior managers.
New clause 6—Failure to prevent fraud, false accounting or money laundering: individual liability—
‘(1) A person (“S”) commits an offence if—
(a) at a time when S is a senior manager or corporate officer of a corporate body (“C”), S—
(i) takes, or agrees to the taking of, a decision by or on behalf of the corporate body as to the way in which the business of the corporate body is conducted, and
(ii) fails to take any steps that S could take to prevent such a decision being taken;
(b) at the time of the decision, S is aware of a risk that the implementation of the decision may lead to the commission of an offence of money laundering, fraud, false accounting, bribery or tax evasion; and
(c) the implementation of the decision causes C to commit such an offence.
(2) For the purposes of this section—
(a) an individual is a “senior manager” of a corporate body if the individual plays a significant role in—
(i) the making of decisions about how the entity’s relevant activities are to be managed or organised, or
(ii) the actual managing or organising of the entity’s relevant activities;
(b) “officer”, in relation to a body corporate, means—
(i) a director, manager, associate, secretary or other similar officer, or
(ii) a person purporting to act in any such capacity;
(c) in paragraph (b)(i) “director”, in relation to a body corporate whose affairs are managed by its members, means a member of the body corporate.
(3) A person guilty of an offence under this section is liable—
(a) on summary conviction—
(i) in England and Wales, to imprisonment for a term not exceeding 12 months (or 6 months, if the offence was committed before the commencement of section 154(1) of the Criminal Justice Act 2003) or a fine, or both;
(ii) in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum, or both;
(iii) in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding the statutory maximum, or both;
(b) on conviction on indictment, to imprisonment for a term not exceeding 7 years or a fine, or both.”
This new clause introduces direct criminal liability for corporate officers who take a decision, or fail to take a decision, that knowingly results in an offence being committed.
New clause 7—Whistleblowing: economic crime—
‘(1) Whistleblowing is defined for the purposes of this section as any disclosure of information suggesting that, in the reasonable opinion of the whistleblower, an economic crime—
(a) has occurred,
(b) is occurring, or
(c) is likely to occur.
(2) The Secretary of State must, within twelve months of the date of Royal Assent to this Act, set up an office to receive reports of whistleblowing as defined in subsection (1) to be known as the Office for Whistleblowers.
(3) The Office for Whistleblowers must—
(a) protect whistleblowers from detriment resulting from their whistleblowing,
(b) ensure that disclosures by whistleblowers are investigated, and
(c) escalate information and evidence of wrongdoing outside of its remit to another appropriate authority.
(4) The objectives of the Office for Whistleblowers are—
(a) to encourage and support whistleblowers to make whistleblowing reports,
(b) to provide an independent, confidential and safe environment for making and receiving whistleblowing information,
(c) to provide information and advice on whistleblowing, and
(d) to act on evidence of detriment to the whistleblower in line with guidance set out by the Secretary of State in regulations.
(5) The Office for Whistleblowers must report annually to Parliament on the exercise of its duties, objectives and functions.”
New clause 21—Civil recovery: costs of proceedings—
After section 313 of the Proceeds of Crime Act 2002 insert—
“313A Costs orders
(1) This section applies to proceedings brought by an enforcement authority under part 5 of the Proceeds of Crime Act 2002 where the property in respect of which the proceedings have been brought has been obtained through economic crime.
(2) The court may not make an order that any costs of proceedings relating to a case to which this section applies (including appeal proceedings) are payable by an enforcement authority to a respondent or a specified responsible officer in respect of the involvement of the respondent or the officer in those proceedings, unless—
(a) the authority acted unreasonably in making or opposing the application to which the proceedings relate, or in supporting or opposing the making of the order to which the proceedings relate, or
(b) the authority acted dishonestly or improperly in the course of the proceedings.”
This new clause extends the cap on adverse costs introduced by the first Economic Crime Act (Transparency and Enforcement) 2022 for Unexplained Wealth Orders, to all civil recovery orders.
New clause 23—Review of measures to prevent proceeds of economic crime entering the UK economy—
Within six months of the passage of this Act, the Secretary of State must lay before Parliament the report of a review of what further regulatory measures could be taken to prevent the circulation in the UK economy of the proceeds of economic crime controlled by individuals or entities subject to sanctions.”
This new clause creates an obligation for the Secretary of State to report to Parliament on the merits of further regulatory measures for preventing the circulation in the economy of the proceeds of economic crime controlled by individuals or entities subject to sanctions.
New clause 25—Report into effectiveness of Act in addressing economic crime involving sanctioned individuals—
‘(1) The Secretary of State must, within six months of this Act being passed, lay before Parliament a report of a review into the effectiveness of the measures in this Act in addressing economic crime involving designated persons.
(2) The report must consider the case for further legislation to make provision for the seizing of assets of a designated person where there is evidence that the designated person has been involved in economic crime.
(3) In this section, “designated persons” has the meaning given in section 9 of the Sanctions and Anti-Money Laundering Act 2018.”
New clause 27—Compensation for Victims of Economic Crime—
‘(1) The Secretary of State must, no later than 90 days from the date on which this Act comes into force, publish and lay before Parliament a strategy for the potential establishment of a fund for the compensation of victims of economic crime.
(2) The strategy may include provisions on the management and disposal of any assets realised by the government, or any body with law enforcement responsibilities in relation to economic crime, under relevant UK legislation.”
This new clause would require the Secretary of State to prepare and publish a strategy on the potential establishment of a fund to provide compensation to victims of economic crime.
New clause 30—Assets of Iranian officials obtained through economic crime—
Within six months of the passage of this Act, the Secretary of State must lay before Parliament the report of a review of regulatory measures to prevent the circulation in the UK economy of assets of Iranian officials which have been obtained through economic crime.”
New clause 31—Fund for the purposes of tackling economic crime—
In the Companies Act 2006, after Part 29 insert—
Part 29A
Economic Crime
993A Fund for the purposes of tackling economic crime
‘(1) The Secretary of State must by regulations establish a fund for the purposes of tackling economic crime.
(2) The regulations must specify the purposes for which the fund may be used, including funding the activities of law enforcement agencies in tackling economic crime.””
New clause 32—Review of definition of cryptoassets—
Within 18 months of the passage of this Act, the Secretary of State must lay before Parliament the report of a review of the adequacy of the definitions of cryptoassets contained in this Act.”
New clause 33—Economic Crime Committee of Parliament—
‘(1) The Secretary of State must by regulations establish a body to be known as the Economic Crime Committee of Parliament (in this section referred to as “the ECC”).
(2) The ECC will consist of nine members who are to be drawn both from the members of the House of Commons and from the members of the House of Lords.
(3) Each member of the ECC is to be appointed by the House of Parliament from which the member is to be drawn.
(4) The ECC will have the power to meet confidentially.
(5) The ECC may examine or otherwise oversee any regulatory, enforcement or supervision agencies involved in work related, but not limited to—
(a) tax avoidance and evasion by corporations;
(b) illicit finance;
(c) anti-money laundering supervision;
(d) tackling fraud;
(e) kleptocracy and corruption; and
(f) whistleblower protection.”
This new clause would oblige the Secretary of State to establish an Economic Crime Committee of parliament to examine and oversee regulatory, enforcement and supervisory action against economic crime.
New clause 39—Duty to report on economic crime resourcing and performance—
‘(1) The Director General of the National Crime Agency must—
(a) prepare a report on the resourcing and staffing of its work to counter economic crime, and its performance tackling economic crime, and
(b) send it to the Secretary of State as soon as practicable after this section comes into force.
(2) The Director General must prepare and send to the Secretary of State further reports on these topics annually.
(3) Each report must include, in particular—
(a) a report of the total annual budget and number of staff allocated to economic crime for each unit within the National Crime Agency,
(b) a report of the number of investigations, arrests, prosecutions and convictions relating to economic crime for each unit within the National Crime Agency, and
(c) a report of other relevant data including, but not limited to, cases per year broken down by both type and outcome; number of restraint or confiscation orders obtained; and value of assets confiscated.
(4) Reporting under subsection (3) must provide a breakdown between domestic economic crime and international economic crime. Reporting on international economic crime under subsections (3)(b) and (3)(c) must provide a breakdown by the income classification of the countries affected.
(5) The Director General must publish every report under this section—
(a) as soon as practicable after they send it to the Secretary of State, and
(b) in such manner as they consider appropriate.”
Section 6 of the Crime and Courts Act 2006 currently places a duty on the Director General of the National Crime Agency to make arrangements for publishing information about the exercise of NCA functions and other matters relating to the NCA, and publish information in accordance with those arrangements. This new clause inserts a new section that places a specific duty on the Director General to prepare an annual report on the NCA’s resourcing and performance relating to economic crime. The section stipulates the minimum information that the Director General must include in the report.
New clause 40—Report into options for corporate liability for economic crime—
‘(1) The Secretary of State must produce a report on corporate criminal liability for economic crime offences.
(2) The report must consider the merits of different models for corporate liability in respect of economic crime, including but not limited to—
(a) the respondeat superior model; and
(b) the failure to prevent model, insofar as it has not already been introduced by the enactment of this Act.
(3) The report must be laid before Parliament within six months of this Act being passed.
(4) In this section—
“the respondeat superior model” means a model for corporate criminal liability in which an entity is guilty of an offence if an employee or agent commits an economic crime offence—
(a) in the course of their employment or agency, or
(b) with an intent to benefit that entity;
“the failure to prevent model” means a model for corporate criminal liability in which an entity is guilty of an offence if a person associated with that entity commits an economic crime offence, intending—
(a) to confer a business advantage on that entity, or
(b) to confer a benefit on a person or other entity to whom the associated person provides services on behalf of the entity with which it is associated, except that the entity shall not be liable where the conduct was intended to cause harm to that entity,
unless the entity can prove that it had in place such prevention procedures as were reasonable in the circumstances, or that it was reasonable not to have any such procedures in place;
a person is “associated with” an entity if they are a person who performs services for or on behalf of that entity, including in, but not limited to, the capacity of an employee, agent or subsidiary.”
Government amendments 44 to 49, 57 and 58 to 100.
Tom Tugendhat
It is a pleasure to see you in your place, Mr Deputy Speaker, and it is the first time I have had the privilege of speaking under your chairmanship on these matters. It is also a pleasure to see so many of the usual faces on this matter. Many of us have gone over these questions in Committee and, actually, in the many years beforehand in various different ways, so it is an enormous privilege to be here. It is particularly a privilege to be speaking after the Minister my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) did such a brilliant job yesterday. I am only picking up where he left off, so I am afraid the second act will not be nearly as compelling as the first.
All those who participated in the Bill Committee gave enormous insights into various different perceptions of how we should be thinking about economic crime and corporate transparency. We have had many interesting debates, and I thank enormously those who have taken part in the various different ways. The fact that we have a two-day debate on Report speaks pretty clearly about the significant size and complexity of this Bill.
Yesterday, we debated parts 1 to 3, which cover Companies House reform and corporate transparency. Today, we turn our attention to parts 4 to 6. The clauses in part 4 create new powers that allow law enforcement to more quickly and easily seize and recover cryptoassets. The creation of the civil forfeiture power for cryptoassets will mitigate the risk posed by those who cannot be criminally prosecuted, but who use their funds to further criminality or for terrorist purposes. This did not prove to be particularly contentious in Committee.
In part 5 of the Bill, we are making it easier for businesses to share information more effectively with each other and with law enforcement to prevent and detect economic crime. We are also creating new exemptions to reduce unnecessary reporting by businesses carrying out transactions on behalf of their customers. We are also giving frontline legal services regulators enhanced enforcement powers to support them as they uphold the economic crime agenda within their regulated community.
I will briefly summarise the amendments we have tabled relating to parts 4, 5 and 6 of the Bill. Many of them address the debate that took place in Committee and will ensure that the Bill works as intended. I should acknowledge that the amendments are perhaps slightly greater in number than we would have liked. The vast majority—amendments 51 and 57 to 100—are minor technical or consequential amendments to ensure that the detail of the cryptoasset measures will work effectively and can be used as soon as possible. That reflects the technical detail of the subject area and the need to make the changes work for each of the jurisdictions of England and Wales, Scotland and Northern Ireland that are covered by the Proceeds of Crime Act 2002.
I now turn to the more substantive Government amendments. New clause 14 allows the Solicitors Regulation Authority to proactively request information from its regulated community for the purpose of monitoring compliance with the economic crime regime. It will enable the SRA to monitor and detect breaches of the rules and legislation related to economic crime, including offences related to money laundering, terrorist financing and sanctions.
Government amendments 44 to 47 to clauses 171 and 172 concern information orders. They seek to clarify the cases in which the information order power can be used and to provide clarity to operational partners about how they should be used. They will ensure that the power can be used only for the criminal intelligence functions of the National Crime Agency, and that when assessing a request for information from a foreign intelligence unit, the NCA must be satisfied that the information would support the FIU’s intelligence function.
Ukraine
Debate between Roger Gale and Tom Tugendhat(2 years, 7 months ago)
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Tom Tugendhat
There is no question but that what we are seeing too often, sadly, not just in Bucha, but in many other areas, including Kharkiv and Sumy, are war crimes. They are crimes against humanity in some cases as well. The sexual violence used against women and girls is truly horrific, and it is clearly not incidental but deliberate; it is clearly an ordered attack—an absolutely vile one.
Let us look at what we need to do. We need to move from the current phase into what this is going to be, which is a campaign, in the sense that it is now going to last. I am afraid that we do not see an easy resolution, a sudden ending of this conflict, peace breaking out and liberation being achieved. Instead, we see a grinding push back of those Russian forces and the need for all of us to be able to sustain this operation to push back the Russians. That will not be achieved if we rely on ex-Soviet equipment—on the stocks left behind at the end of the cold war and the fall of the iron curtain. We need to look at a Finlandisation of Ukraine; we need to be assisting it with the full conversion of its military to a NATO standard, which we can sustain, because we have the weapons, the industry and the factories that can then supply Ukraine. We have the ability to do that because we have the mass and the firepower to sustain the Ukrainians. But we can do that only if we make a deliberate effort and choice to change from where we are now to a proper campaign footing. But this is not just about Ukraine. My right hon. Friend the Foreign Secretary and the shadow Foreign Secretary have spoken a little about how this is fundamentally not just a battle for Ukraine; it is a battle for all the world and, very particularly, it is a battle for the UK.
Sir Roger Gale (North Thanet) (Con)
Were Russia to be allowed to succeed, would Moldova not go next, with Georgia after that? Is it not therefore crucial, in the western interest, that we make sure that there is no success for Putin?
Tom Tugendhat
My right hon. Friend is absolutely right to say that this is one of those domino moments where we can hold the advance and prevent the next one from falling, or we can watch a series of them going down.