Oral Answers to Questions

Ian Murray Excerpts

Wednesday 16th March 2022 Commons Chamber

[Mr Speaker]

We now come to the shadow Secretary of State, Ian Murray.

[Ian Murray (Edinburgh South) (Lab)]

I am sure that the Secretary of State would like to join me in welcoming Dr Riches, who is watching our proceedings today. She is from the Royal Society and she is shadowing me as part of a pairing scheme. She is very welcome.

Holyrood unanimously approved a legislative consent motion for the Economic Crime (Transparency and Enforcement) Bill, which included an amendment from my Labour colleague Michael Marra urging the UK Government to remove a provision that would require ownership of land only from 2014 to be registered in Scotland registered, when the requirement is from 2004 in England. So if someone has laundered Putin’s dirty money in Scotland before 2014, they are in the clear. For example, Perthshire’s Aberuchill castle was bought by the Russian steel magnate Vladimir Lisin for over £5 million in 2005. He has been on the Treasury’s watchlist since 2008, but he is not covered. Vladimir Romanov, who bought Heart of Midlothian football club along with swathes of central Edinburgh, is allegedly hiding in Moscow under the protection of Putin. He would not be covered either, but both of them would be covered in England. Does the Secretary of State think that is right? What is he doing to implement the LCM amendment to sort this smugglers’ cove in Scotland?

[Mr Jack]

I join the hon. Gentleman in welcoming the Royal Society pairs who are in London. I also thank the Labour party for its support for the Economic Crime (Transparency and Enforcement) Bill—it is hugely appreciated.

On the registration of property, England and Wales changed the rules for transparency of ownership in 1999, but in Scotland they were changed in 2014. The problem we have is that, if we go back before 2014, there is a risk that third parties who did not know they were engaging with an overseas entity that was non-compliant could be hurt. That hurt would be for something they were engaged in unwillingly, and we must protect those third parties. That is the reason why we have not gone back before 2014, and the Joint Committee on the Draft Registration of Overseas Entities Bill, which reviewed the draft legislation, agreed with that, but I have every sympathy with the points the hon. Gentleman makes.

[Ian Murray]

I am sure that anomaly could be sorted to ensure that we do not hurt unsuspecting third parties. One of the most important ways to clamp down on illicit Russian money and influence in the UK is through the reform of Companies House. Despite Labour’s attempts, the Economic Crime (Transparency and Enforcement) Act 2022 does not contain such reforms, but they are important, because Scottish limited partnerships, which were set up for Scottish farmers in the 19th century, remain an outdated and opaque vehicle of ownership that is used in the 21st century to obscure beneficial ownership. There is widespread support for that change, but the Government refused to act. Will the Secretary of State commit now to reforming Scottish limited partnerships and wider company law so that we can see who actually owns the companies and shut down those laundering loopholes?