Economic Crime (Transparency and Enforcement) Bill

Debate between Angela Eagle and Paul Scully

2nd reading
Monday 7th March 2022 Commons Chamber

[Paul Scully]

I will come to those figures because I totally agree with my hon. Friend that the rules and new laws must be enforced. We can talk as much as we like, but this is about action, and we are leading the way on action.

This Bill will also reform unexplained wealth orders by removing the key barriers to their use by law enforcement and include amendments to financial sanctions legislation, helping to deter and prevent breaches of sanctions.

Questions have been raised today about why it has taken this long to come up with the legislation. We had prelegislative scrutiny on the register of ownership a couple of years ago, which obviously was interrupted by the pressures of covid on parliamentary time. None the less, that means we have been able to adapt the paragraphs that have already been drafted, undergone prelegislative scrutiny and had a clean bill of health from Committees in this place to the new norm following the Russian invasion of Ukraine.

[Dame Angela Eagle]

We on the Treasury Committee have just published a report on economic crime and some of the evidence we took highlighted a great deal of frustration among those working in this area and trying to make the system work, in particular at the Minister’s Department’s lack of progress with reform of Companies House. That is in the Minister’s own specific bivouac; why has more not been done faster?

[Paul Scully]

I am thinking of the word bailiwick rather than bivouac, but I hope the hon. Lady will agree that our being able to reflect on that legislation and align it with the broader reforms of Companies House that we have subsequently announced has enabled the broader legislation to work together and be more effective. That has been absolutely essential in ensuring that the new requirements are workable and proportionate and the register strikes the right balance between improving transparency and minimising burdens on legitimate commercial activity.

Economic Crime (Transparency and Enforcement) Bill

Debate between Angela Eagle and Paul Scully

Committee stage
Monday 7th March 2022 Commons Chamber

[Paul Scully]

I thank the hon. Gentleman for his intervention. I have spoken to colleagues across the House. We will certainly look at how to draft the measure correctly to ensure that it serves its purpose. We will certainly look in the other place to debate that further.

[Dame Angela Eagle (Wallasey) (Lab)]

Will the Minister give way?

[Paul Scully]

I will not give way for a second, because I want to ensure that we can cover the ground. I will deal with some of the opposing amendments at the right time: at the end of the Committee.

Clauses 20 to 30 cover the annotation and inspection of the register, and the disclosure, protection, correction and removal of information. Clauses 31 to 39 cover measures including the false statement offence and amendments to land registration as well as provisions about offences and penalties. The schedules define key terms such as “registrable beneficial owner” and cover amendments to land registration laws, for example, regarding land ownership and transactions for England and Wales, Scotland and Northern Ireland respectively.

[Dame Angela Eagle]

Will the Minister give way?

--- Later in debate ---

[Paul Scully]

I thank the right hon. Gentleman for that point; it comes back to something that was said in the previous debate about persons of significant control, which I did not address at the time. However, I will take that point away and discuss it with the right hon. Member for Barking (Dame Margaret Hodge) and others to make sure that we can get any drafting on that exactly right.

[Dame Angela Eagle]

Will the Minister give way?

[Paul Scully]

I will not just because I want to make sure that we can cover all the areas, and we will be short of time.

Important changes in part 2 include changing the unexplained wealth order regime, increasing the scope of the existing powers to ensure that an enforcement authority can obtain the information that they need even when the assets in question are held in trusts or other complex ownership structures. That is to ensure that the true owners cannot hide their claim over assets to avoid the force of the law. The introduction of an alternative test to the existing income requirement also provides flexibility for agencies to tailor the UWO applications to the facts of a case.

Clauses 44 to 47 will mitigate the significant operational risks to an enforcement authority and provide a more encouraging basis for them to use their powers to seek a UWO: first, by extending the period for which an interim freezing order has effect, enabling agencies to review material provided in response to a UWO without significant time pressures; and secondly, by reforming the cost rules to protect law enforcement against incurring substantial legal costs following an adverse ruling.

Part 3—clauses 48 to 51—strengthens the financial sanctions legislation to change the monetary penalty test and internal review process. Those changes will allow the Office of Financial Sanctions Implementation to publicly name sanctions breaches even when no monetary penalty has been imposed and allow for greater information sharing across Government.

We are really grateful for the support of all parties in passing this legislation as quickly as possible, but in the light of the deteriorating situation and the Government’s desire to work together to strengthen and accelerate this package, I want to outline further measures that we have tabled as Government amendments.

New clauses 32 to 40 will amend the Sanctions and Anti-Money Laundering Act 2018 to streamline the current legislation so that we can respond even more swiftly and effectively to sanction oligarchs, individuals and businesses associated with Putin’s regime and others like them in the future. New clause 32 will simplify the procedural requirements that can delay the implementation of sanctions. New clauses 33 and 34 are designed to streamline the designation of individuals and entities, allowing us better to respond to fast-moving events. New clause 36 will ensure that the proposed changes in new clauses 33 to 35 will apply to sanctions regulations that are already in place. New clause 37 will remove the requirement for Ministers to review each sanctions regime every year and to review each designation every three years. That will free up vital resource to focus on developing new designations.

[Dame Angela Eagle]

Will the Minister give way?

[Paul Scully]

I will—the hon. Lady has been trying so hard.

[Dame Angela Eagle]

I thank the Minister for giving way finally, but it all counts. He seemed to be saying to colleagues earlier that his attitude to our amendments is that he is willing to discuss them after the Commons stages of the Bill and to do something in the Lords. Is that what he is saying? Is he telling us today that the Government will not accept any more Opposition or Back-Bench amendments and that he will leave it to the House of Lords to change these things? Clearly, if that is going to be his attitude, we need to know.

[Paul Scully]

I will cover the amendments more fully in my closing remarks, once they have been spoken to. None the less, I want to ensure that the amendments with which I have sympathy do exactly what they are intended to do and that the drafting is right. I am happy to work with colleagues who have tabled them to make sure that we can get that right and to see what more we can do in the other place.

Economic Crime: Planned Government Bill

Debate between Angela Eagle and Paul Scully

Wednesday 26th January 2022 Commons Chamber

[Paul Scully]

I congratulate my hon. Friend and thank her for the work she does in this area. We have had a number of conversations and we will always look to see what more we can do to strengthen the whistleblowing framework in legislation. We do not necessarily agree on the end result, but, again, it is a complicated area that we do want to get right, for the reasons she set out. I will continue to work with her and with my hon. Friend the Member for Thirsk and Malton.

[Dame Angela Eagle (Wallasey) (Lab)]

While the Minister wrings his hands, London has become the jurisdiction of choice for dirty money. The levels of fraud are soaring upwards in the wrong direction. We have waited years and years for the open register of beneficial ownership of companies and it has not appeared, and we have waited years and years for corporate liability reform. How much longer do we have to wait? How much worse are this Government going to let fraud and money laundering get before they get off their collective backside and do something?

[Paul Scully]

What I am not going to do is pre-empt Her Majesty.

Greensill Capital

Debate between Angela Eagle and Paul Scully

Tuesday 13th April 2021 Commons Chamber

[Paul Scully]

Having been in opposition at a local level, I know what causes speculation and mistrust among the public, and it is that chipping away, the politicisation of some of these issues. But the Chancellor has been particularly robust in his actions and his outcomes here. There is a review; Nigel Boardman will do his work. People have committed to be open and transparent with him, and the review will report back at the end of June, and will show results for the public to see.

[Dame Angela Eagle (Wallasey) (Lab) [V]]

Was the British Business Bank approached by senior civil servants or Ministers about Greensill’s having access to the coronavirus large business interruption loan scheme? Did Greensill exceed its authority and lend more than it was authorised to lend—£400 million to the Gupta group alone, all of which has now been lost?

Oral Answers to Questions

Debate between Angela Eagle and Paul Scully

Tuesday 9th February 2021 Commons Chamber

[Dame Angela Eagle (Wallasey) (Lab)]

What recent steps he has taken with the Secretary of State for Work and Pensions to improve the enforcement of workplace health and safety laws.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)]

The Government have invested an additional £14 million to support the Health and Safety Executive’s enforcement of health and safety laws. My Department has provided guidance on safer working in response to covid-19 that helps to inform the HSE’s monitoring and enforcement activities. This guidance is kept under continuous review.

[Dame Angela Eagle [V]]

Given the emergence of new, more transmissible strains of covid-19, why has the Minister not updated his Department’s workplace guidance with stronger recommendations on ventilation, personal protective equipment and the increasing requirement for effective surface disinfectants to be used, so that everyone can be kept safe at work?

[Paul Scully]

The HSE and Public Health England continue to look at the guidance, and they believe that it is robust enough for the new variants. It has been very clear, right from the outset, that ventilation is an important weapon in tackling covid.