Serious Crime Bill [Lords]

Debate between Dominic Raab and Steve Barclay

Monday 23rd February 2015 Commons Chamber

[Mr Raab]

I welcome the shadow Minister’s intervention and she has got half a point, but the thing is that I have been nailing those on my Front Bench on this for three years and the difference is that they have stuck to their line fairly consistently whereas literally in the last month the leader of the Labour party has gone on record—his advisers have been trailing it liberally after the glitzy Hollywood dinner with the Clooneys—saying that actually he would go for a UK Magnitsky Act, but when push comes to shove it is nowhere to be seen. This raises a whole question about the Labour party having the courage of its convictions. So I have made this point to Members on my own Front Bench, but I also think the shadow Minister needs to be responsible for her own position and her own party’s position—and, indeed, answer for what the leader of the Labour party has trailed widely in the media.

Coming back to the substance of this, it is also worth remembering that in cases of extradition or deportation there is already a huge amount of transparency over both the policy and who is being removed. As a result, there is intense and legitimate scrutiny of Government policy. So if the public have the right to know whether the Government intend to remove the likes of Abu Qatada, why should they not equally be told whether we are banning such people from coming here in the first place? If we are serious about trying to alter Putin’s behaviour, should we not start by making sure that those who bankroll him cannot enjoy the fruits of their labour here, clandestinely in luxurious comfort? Those individuals who bankroll Putin and his like should know that when they cross the line and engage in serious international crimes, their association with him and support for him will bar their ability to enjoy the luxurious Knightsbridge lifestyle that so many of them crave. To ensure that message hits home consistently and publicly, we need transparency over such visa bans.

This new clause does not single out Russia. It would apply to any individuals linked to terrorism, violent extremism, gross violations of human rights law, money laundering and other serious organised crime, whatever their nationality and wherever they take place.

[Stephen Barclay]

Is a further reason why we need transparency that there is very little transparency around the beneficial ownership of multimillion pound property in London? For example, a respected non-governmental organisation estimates that 45% of London property valued at above £2 million is owned offshore where the beneficial owner is opaque. If those who have profited through torture and corruption are able to own London property, it is even more important to be transparent about whether they are travelling here.

[Mr Raab]

My hon. Friend is absolutely right. We need to shine a light on the murky mafia-related activities that are infecting our country through the acquisition of property and also by the physical entry of individuals into this country.

This amendment would also make an important statement about British foreign policy, particularly as inevitably in the 21st century we have to rub along with, deal with and engage with Governments who do not respect the same standards of liberal democracy as we do here in Britain. I am a realist and I recognise that we will have to engage with regimes with a dubious commitment to human rights or the rule of law, but there ought to be some moral red lines here. People carrying dirty money and individuals with blood on their hands should not be welcome on the streets of Britain. This is not just a question of moral principle. Sooner or later, if we keep allowing such unsavoury characters into the UK, bringing all their baggage and vendettas with them, we risk finding that it is British citizens who are caught in the crossfire or worse. After all, the Litvinenko inquiry has already heard that Putin’s thugs were willing to engage in nuclear terrorism here in public, so the threat to the British public is real and serious.

I remain convinced that Britain should enact a Sergei Magnitsky law, like the Americans, with mandatory visa bans and asset freezes imposed on people linked to the worst international crimes. In the meantime, at the very least we need to shine a light on the exercise of existing UK powers to deny entry or visas to the shady characters who prop up Putin, or indeed any other despot around the world.

This new clause does that. It would allow a temporary delay in disclosure of the identity of anyone banned if necessary for national security or law enforcement, and it would not alter the substantive scope of any existing powers, but it would ensure that they are exercised consistently, and it would ensure that the public are told whom we ban from Britain. I commend new clause 18 to the House.

[Stephen Barclay]

I rise to speak to new clause 28, tabled in my name, which is much more modest than the new clause tabled by my hon. Friend the Member for Esher and Walton (Mr Raab). It is simply about giving law enforcement more time in respect of multimillion pound money laundering cases.

At present around 316,000 suspicious activity reports are filed each year with law enforcement agencies. Those are cases where the banks, the lawyers or the accountants have serious concerns around money laundering. According to the Home Office’s own figures, between £23 billion and £57 billion are being channelled through the UK economy each year, so we know the scale of money laundering is significant. At present, when a suspicious activity report is filed the law enforcement agencies—the National Crime Agency has now taken on this responsibility —have just seven days to say whether they give consent to those multimillion pound transfers going ahead. That is just seven days on a case that might well have been built over many years, often involving jurisdictions where information is difficult to obtain, and if law enforcement decides it does not wish to give consent to these transactions, which the financial institutions themselves have said look suspicious, they have just 31 days to build the case to the satisfaction of the courts. If they fail to do so, they risk the penalty of costs against them, which sets a strong disincentive to law enforcement to take those cases forward. To put that in context, the proceeds of crime unit investigated only 110 cases from the 316,000 suspicious activity reports filed with it, so clearly the system is not working.

I thought I would give just one case to bring this to life. The Nigerian case OPL 245 has a bit of a jargony name, but it involves $1 billion paid by a British oil company for some offshore land in Nigeria with oil assets. To put this in context, $1 billion was paid for this land for drilling—they do drill offshore, I should point out for the benefit of any Members who might be confused as to how they obtain the oil—yet 14 years earlier this land was granted to a company owned by the then Nigerian oil Minister. In essence the land was granted by the Nigerian oil Minister to a company that he owned and for which $1 billion was then paid 14 years later. In investigating that case that had developed over many years involving complex financial arrangements over different jurisdictions, law enforcement has just 31 days to build a case that would block the transfer of $1 billion that is going to a corrupt official and his henchmen.

New clause 28 simply seeks to give law enforcement agencies more time to build their case. I shall not press it to a vote, but I hope that the Minister will tell us whether the Government believe that the current arrangements provide sufficient time, or whether they accept the substance of the new clause, which is that the current arrangements are insufficient and that they load the dice against law enforcement, meaning that corrupt assets can be transferred from the UK to criminals. If the Government accept my proposal, I hope that they will change the law at the earliest opportunity to create a more level playing field by giving more time for these complex, multi-jurisdictional cases to be investigated.