Summit on Illicit Finance

Joe Powell Excerpts

Tuesday 9th June 2026 Westminster Hall

[Joe Powell (Kensington and Bayswater) (Lab)]

I join others in congratulating the hon. Member for North Norfolk (Steff Aquarone) on securing this debate and on restricting himself to only two mentions of mansions in Kensington in his introduction.

This should be one of the progressive causes of our time. Others have covered the harms: from the links to the drugs trade and other serious organised crime, to the housing crisis and to conflict in Ukraine, Sudan and other parts of the world. I am delighted that the Government have recognised the problem and have taken action to date, including their commitment to host this summit on illicit finance.

I disagree with the hon. Member for North Norfolk; I think it was the right decision to delay the summit. Primarily, that is because it gives us time to produce a package of progress that we can show to the world, build alliances around key themes and link this summit to the UK Government’s other international leadership positions, including the G20 presidency in 2027, the presidency of the financial action taskforce from 2026 to 2028, and the chair of the Open Government Partnership. Those are all forums where we can take illicit finance and corruption initiatives and multilateralise them through other international organisations.

There is a big opportunity here. Before being elected, I spent a decade working on illicit finance and corruption. I supported the last summit on anti-corruption that we led as a country in 2016, which was hosted by Lord Cameron of Chipping Norton. That summit helped to put beneficial ownership transparency on the map as a tool to remove secrecy from the anonymous companies that, on many occasions, facilitate money laundering. There is an unheralded British success here: 104 jurisdictions now have a live register, although I accept that there are varying degrees of openness. There is, of course, the glaring exception of most of the British overseas territories and Crown dependencies.

The lessons of the summit can be applied to December’s summit. First, as others have mentioned, there is the need for political leadership, from the Prime Minister down, to bring international counterparts to the UK and to link the summit to other international forums in which we are involved. Secondly, there should be strong cross-Government co-ordination, with regular ministerial meetings. Thirdly, there should be clear and specific policy commitments that other countries can join, rather than vague initiatives that will fizzle out immediately. Fourthly, we must be open to working with civil society, which can support the bringing of countries to the table and add ideas, enthusiasm and accountability to the summit. Fifthly, we must prepare our own package of reforms so that we open the summit with a strong policy offer.

We have an outsize responsibility in this area because we are the epicentre of global finance. My hon. Friend the Member for Bolton West (Phil Brickell) has covered the stats, and I know that the Minister cares deeply about this issue. I have three brief policy proposals on which we can make progress before the summit.

The first proposal is about property, which the Government are right to make a summit priority. The goal should be a global alliance for full transparency in property ownership, so that dirty money cannot be stashed in London or in other property markets around this country and the world. In my constituency of Kensington and Bayswater, 40% of the foreign-owned property is still held in anonymous trusts. That means that approximately 4,000 properties in my constituency have hidden ownership, despite the introduction of a register of overseas-owned properties after the full-scale invasion of Ukraine.

There is a major loophole that is incentivising more opaque ownership structures, which have only been thrown open through leaks and investigations such as the Panama and Paradise papers investigations. Dan Neidle, a tax lawyer, found that the ultimate owners of 45,000 properties in this country—properties collectively worth £190 billion—are still hidden from view. It is time to report back on the consultation opened two years ago on trust-owned property and to take bold action. Of course, beyond property there is a need to continue Britain’s leadership on beneficial ownership, the overseas territories and Crown dependencies, as the right hon. Member for Sutton Coldfield (Sir Andrew Mitchell) has outlined. That is absolutely the right place to start with our leadership in the global jigsaw. Gibraltar has done this work with no economic harm whatever and we need to extend it.

Finally, on professional enablers, I am really glad that the Financial Services and Markets Bill was in the King’s Speech. That will extend the Financial Conduct Authority’s supervision to accountants, lawyers and other financial bodies, and introduce proper anti-money laundering supervision to them.

There must be no more anonymously owned properties, which allow dirty money to be stashed with impunity; no more tax haven secrecy, which facilitates billions in criminal and corrupt cash; and no more hiding places for professional enablers, who turn a blind eye to dirty money. Those ideas should be the basis for a summit that can show our leadership on the global stage.

--- Later in debate ---

[Dr Ellie Chowns (North Herefordshire) (Green)]

It is a pleasure to serve under your chairship, Sir Roger. I thank the hon. Member for North Norfolk (Steff Aquarone) for securing this important debate.

I welcome the Government’s commitment to hold a summit on tackling illicit financial flows, but it is essential that more political priority is given to this issue and that the UK shows more leadership in this space. If the summit is to be a success, we need to put our own house in order and play a critical role in helping to clean up the global financial system. We must also clean up the influence of dirty money, which infests our politics and the fabric of our country.

The UK plays a core part in this issue, particularly due to the role of the overseas territories and Crown dependencies in facilitating these flows. As we have already heard, if we include the overseas territories and Crown dependencies, it is calculated that £788 billion of illicit finance from financial crime, money laundering, corruption, illegal trade and tax abuse flows through the UK and its territories every single year. That is a huge problem.

I was particularly struck by the calculation from Tax Justice UK that the UK and its overseas territories and Crown dependencies are responsible for about a quarter of revenues worldwide lost due to tax abuse. That is extraordinary. We represent less than 1% of the global population. Our economy, depending on how it is measured—purchasing power parity or not—is between 2% and 3% of the global economy, yet we are facilitating 25% of global tax abuse. That is absolutely unacceptable. I welcome the commitment from Members across the Chamber today to tackling that. I very much hope that we will hear strong words, followed by strong action, from the Government today and in the summit.

It is crucial that we have full transparency over property ownership and beneficial ownership. It is crucial that registers are fully accessible to everybody and are not just, as has been suggested by some territories, accessible only to certain people at certain times—pre-qualified, with notifications being sent to owners that people are looking into their affairs. Transparency is a fundamental principle, and it is essential to prevent the abuses that we know the system of secrecy actively enables. I very much hope to see strong action from the Government on that at the upcoming summit.

It is also crucial that the summit recognises that tax abuse includes both tax evasion and tax avoidance. The UK economy loses tens of billions of pounds each year, as the hon. Member for Kensington and Bayswater (Joe Powell) mentioned.

[Joe Powell]

I appreciate the cross-party spirit in which this debate has been held, but it would be helpful if the Green party leader would pay his own council tax as a demonstration of leading by example.

[Dr Chowns]

I am disappointed that the hon. Member is taking the opportunity to score a cheap political point when we have been working cross-party on these issues. On that specific issue, the leader of the Green party has apologised and made clear efforts to pay any tax that he may be found to owe. As has become clear, this a complex issue that affects potentially tens of thousands of people in the UK, and we would welcome clarification on it. But that is a cheap political point to attempt to score in a debate about abuses of the tax system that are resulting in hundreds of billions of pounds of lost revenue to countries around the world.

I would like to pick up on a specific issue that I know the Government intend to address in the three priorities they have set out for the summit: the illicit gold trade. I have previously spoken in the main Chamber about the deeply concerning role of the illicit gold trade in funding and facilitating the horrors that we see in the conflict in Sudan, so it seems crucial that the UK Government do everything possible to clean up that particular mechanism for funding abuses globally.

The huge, significant role played by the UK in supporting and enabling illicit financial flows not only harms us in the UK, with the presence of illicit businesses in our high streets and villages, as the hon. Member for North Norfolk spoke about, or, as the illegal Russian invasion of Ukraine highlighted, affect us through dirty Russian money embedded in our economy; it also has huge ramifications around the world. The UK’s role in facilitating flows of illicit finance actively supports the impoverishment of already impoverished countries and Governments. We have a responsibility to clean up our act in this country both because it will benefit us and improve revenues to the public Exchequer for reinvestment in public services and because we have a fundamental moral duty to ensure that we do not facilitate flows of dirty money globally.