Sanctions and Anti-Money Laundering Bill [HL]

Baroness Bowles of Berkhamsted Excerpts

Committee: 4th sitting (Hansard): House of Lords
Tuesday 12th December 2017 Lords Chamber

[Lord Collins of Highbury]

My Lords, we may get the same response from the Minister to this amendment, but Clause 41 deals with more than simply bringing EU law into domestic law. We have a clause on anti-money laundering that basically says that we already have primary legislation, so we have no need for more and will deal with all this through regulation. I want to hear clearly from the Minister why that is the case. These probing amendments are about the Minister having to make the case. What is deficient in our existing legislative framework? Why is it not sufficient to deal with the problems that have already been identified or may be around the corner? It is up to the Minister to say why existing primary legislation is not sufficient.

If it is not sufficient, why are the Government not bringing forward primary legislation to deal with it, or making the case for primary legislation? I am tempted to use the terms “known unknowns” and “unknown unknowns”. What are we leading ourselves into? We have tabled this amendment to ask, if the Government have the powers of the super-affirmative procedure, what is the bare minimum? If we will not have scrutiny through primary legislation, let us ensure that on this clause the Government have to say what they intend to do, are required to consult on it and are required to respond to that consultation before any regulations are brought into force. That is the bare minimum.

So far, in all the Committee days, I have not heard that there is a case to be made on this anti-money laundering. By the way, I think it was on the last Committee day that I raised the question of the anti-corruption strategy. I am really pleased that that was published yesterday; I brought it with me and I hope, if we go on for long enough this afternoon, that I will have the opportunity to read it. One of the things about the strategy that concerns me is: who is leading on it? I understand that John Penrose has been given the responsibility, but when the then Prime Minister David Cameron talked about that need at the anti-corruption strategy summit, we were talking about a Cabinet Minister having responsibility. We were talking about the Government taking these issues seriously. We know that money laundering is the key element in most corruption in the world, where people secretly get money out, get it all cleaned up and buy property et cetera.

I hope the Minister will explain why we seem to have had a downgrade on corruption—and not only that. If it is a priority, why are we not getting primary legislation to address these issues? Why are we seeing this being done, in effect, through the back door? I strongly believe that if the clause remains as it is we must have the super-affirmative procedure to ensure not only that we have only proper parliamentary scrutiny but that the people who put the House of Commons there can see and comment on what is being proposed so that there is proper accountability. I beg to move.

[Baroness Bowles of Berkhamsted (LD)]

My Lords, I welcome the comments that have just been made on this group of amendments on the super-affirmative procedure. When I went to bed last night I was thinking of commenting only that this enhanced procedure was interesting and worth exploring further, particularly to see whether it goes far enough. We are entering new territory. If a procedure such as this gives sufficient consultative and amendment power to Parliament, it might work—but it is still, as has been emphasised, a big downgrade from participating in an Act of Parliament and therefore should not in any way be a “new normal” to replace what could, or should, be done more fully. Having said that, coupled with the sunset clause that noble Lords have proposed in the last group this evening, it is perhaps even more interesting as a backstop and a temporary measure.

However, this morning—I did not have an inspirational dream and I do not want to retract anything that I have just said—I replied to an email from a lobbyist seeking amendments to the withdrawal Bill to change some things in EU financial services legislation while it is being transposed. As part of my reply I explained that the issue concentrating my mind was far more the division of power between government and Parliament—how changes such as the one they sought to address by lobbying me might be addressed in future—and that there would be legislation following on from the withdrawal Bill. We could say that the Sanctions and Anti-Money Laundering Bill is an advance guard of that follow-on legislation. I ended up by saying that if the Government got their way on the division of power then the lobbyist need never lobby Parliament again. What a statement that is about lack of power and the place of Parliament, yet that is what the Government seek to do to what we proudly call the mother of Parliaments.

Now, “need never lobby Parliament again” is not entirely true. Lobbying would become concentrated solely on getting regulations voted down—in full. I wonder whether the Government have thought through how that would play out. For example, divide and rule—a tactic well used when lobbying and suggestions are varied—would no longer apply. Everyone would be as one, even if for different reasons. I have seen concerted naysaying on issues in the European Parliament—and it is both powerful and very unpleasant.

It is important that Parliament has not just negative but positive power to seek amendments, including to make additions that are significant, not just tweaks. That is what I am looking to preserve, even for any interim measure.

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Moved by

[Baroness Bowles of Berkhamsted]

77: Clause 47, page 32, line 13, leave out subsections (1) to (3)

[Baroness Bowles of Berkhamsted]

My Lords, Amendment 77, which is in my name and that of my noble friend Lady Kramer, takes your Lordships again to the issues of the Ahmed case. The amendment would delete the first three subsections of Clause 47, which repeal the Terrorist Asset-Freezing etc Act 2010, so would stop that Act being revoked. We do not agree with the repeal of that Act and its replacement by a general power to do anything, which is what the Bill does.

There have already been significant contributions from noble Lords, and especially noble and learned Lords, in respect of powers in Clauses 10, 11, 16 and 32 which reach into the same issues. If anything, the amendments proposed already have not gone far enough. The rights of appeal as well as review that are contained in the Terrorist Asset-Freezing etc Act 2010 should not be dispensed with.

The Supreme Court struck down the Treasury’s previous regime as an oppressive one that had devastating effects on families, which led to the 2010 Act. It looks like the Government are giving themselves power to do that again. We come back to worthy intentions, but the safeguards must be there. Under the current law, the court hears appeals against designation decisions, not just reviews. That should be maintained.

This amendment revisits issues debated at the time of the 2010 Act, such as who decides questions of fact and the scope of error allowed to the administrative decision-maker. There will be noble and learned Lords who have a better grasp of the issues than me, and as I mentioned, we have already been around that loop in previous debates on other clauses. However, to me, it is a question of principle: to seek to increase power and simultaneously reduce defences is not acceptable, all the more so when there is no relevant change in circumstances or threats brought about by Brexit. It is no excuse to ravage what have previously been just defences. I beg to move.

[Baroness Kramer]

My Lords, I will speak briefly. I am no expert on the relevant legislation that is being repealed under this clause, but I have spoken to those who are, and the response I have had is one of shock. Legislation that went through both Houses of Parliament, with great care, debate, consideration and amendment, is now being swept away, to be replaced by a regulatory power, which, again, is not bounded in any way. It could be identical or it could be completely different, but it is not discussed or laid out anywhere in this legislation.

In the past we have talked primarily of powers that have come through a democratic process in Brussels: through the European Parliament’s scrutiny, consultation and voting processes, and through votes of the Council. In this case, we are talking about sweeping away, to be replaced by regulation, significant legislation that came through this Parliament in a democratic process. I do not understand, nor have I heard any explanation, why the Government are choosing to take this route.

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[Baroness Bowles of Berkhamsted]

I thank the Minister for his response. I am sure he appreciates that this is, if I may use the words of the noble Lord, Lord Collins, a backstop amendment. The point is that satisfaction has to be achieved somewhere in the Bill in respect of the clauses I named, particularly Clauses 10, 11, 16 and 32, and so far we do not appear to have that. This is of a package with that. Something has to be done, so while for the moment I am prepared to withdraw the amendment, I expect this whole issue to be revisited with considerable force on Report. I beg leave to withdraw the amendment.

Amendment 77 withdrawn.