Human Rights Abuses: Magnitsky Sanctions

Joe Powell Excerpts

Thursday 8th January 2026 Commons Chamber

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

I join colleagues in congratulating the right hon. Member for Chingford and Woodford Green (Sir Iain Duncan Smith) on securing the debate. As he rightly said, an effective sanctions regime is an increasingly important foreign policy and defence tool. Having worked on international anti-corruption and open government efforts for over a decade before I came to this place, I know that they can make a real impact. I agree with him that such a regime includes the threat of sanctions, as well as their execution.

Like others, I am pleased that the Government have introduced over 900 new sanctions against individuals, entities and ships under the Russia sanctions regime, and over 60 designations under human rights and anti-corruption specifically. I know how seriously the Minister takes this tool, and I sincerely thank him and his officials for their complex work. I believe that the UK’s ambition on sanctions is at the edge of global leadership. That means that we must continually look for ways to make the system more effective, and I will suggest a couple of areas in which we might do so.

One obvious area, in which I know the Government are working hard, is the transparency of asset ownership across jurisdictions. If we want sanctions to work, we need to know where the assets are, and transparency is an important prerequisite for effective targeting. To give one example, approximately 40% of the foreign-owned properties in Kensington and Chelsea are controlled by trusts. Through sanctions, our borough has one of the highest numbers of frozen properties. Trusts are not automatically included in the foreign-owned property register, and although information can now be made available on request, the lack of open data makes it harder to track real ownership. I know that the Government are considering that matter.

Similarly, as my hon. Friend the Member for South Dorset (Lloyd Hatton) mentioned, the long-standing effort to bring in transparent beneficial ownership registers to the UK overseas territories and Crown dependencies would enable better tracking of assets under the control of sanctioned individuals. I support the Government review of asset and beneficial ownership in the UK, which is being carried out by anti-corruption champion Baroness Hodge, as part of the anti-corruption strategy, to identify vulnerabilities in that area. I hope that her recommendations can support our sanctions regime to be more effective.

International data sharing on this issue is important. The illicit finance summit is coming up in May. Will the Minister outline whether sanctions policy, and international co-operation around it, will be on the agenda?

On scope, we may benefit from looking more closely at how the two Magnitsky-style regimes interact, particularly in terms of corruption related to abuse of function, trading in influence and illicit enrichment, which bridge human rights and corruption. I hope that the Minister will keep under close review the potential effectiveness of sanctions relating to Georgia. I have met representatives of Georgian civil society, which has been calling for the UK to expand our sanctions further, including to Mr Ivanishvili and his top officials.

For sanctions to be effective, they have to bite, and enforcement is critical. I welcome the Government’s approach of working multilaterally with allies to maximise effectiveness. However, it is also important that we look closer to home. Roman Abramovich is a former resident of Kensington and Chelsea, and still owns frozen property in my constituency. As the House will no doubt be aware, he was sanctioned in March 2022, and his UK assets were frozen. In May 2022, he sold Chelsea football club under an agreement that the sale proceeds would be used for humanitarian need in Ukraine. It is shameful that, almost four years later, that money has still not been released. I strongly welcome the Prime Minister’s leadership in issuing a licence last month to release the money within 90 days, and in making a commitment to taking legal action if necessary.

This is a case of profound national and international importance—and a test of whether our sanctions have the bite that they need. Although I welcome the cross-party spirit with which the right hon. Member for Chingford and Woodford Green approached the debate, I find it astonishing that such a serious conflict of interest has now emerged at the top of the Conservative party. Sir Bill Browder—the man who spearheaded the global campaign for Magnitsky sanctions—has asked how it is possible that the shadow Attorney General can

“moonlight as the attorney for a Russian oligarch who is trying to wiggle out of a £2.5 billion deal to aid victims of the war in Ukraine that he made with the UK Government? Back in the day that was called a ‘conflict of interest’”.

I agree with Sir Bill, and I suspect the right hon. Gentleman has sympathy with that point, too.

The detail matters here. Yesterday, Lord Wolfson published a letter saying that the Prime Minister got his facts wrong, and that he was not advising Mr Abramovich on UK sanctions or the proceeds of Chelsea FC. First, the Prime Minister did not in fact say that Lord Wolfson is advising Roman Abramovich on UK sanctions and the proceeds of sale of Chelsea FC. The Prime Minister did say, however, that Lord Wolfson is advising Mr Abramovich. That is true, as both Lord Wolfson and the Opposition spokesperson have now confirmed. The record should, in my view, be corrected.

Secondly, Lord Wolfson’s letter omitted the most crucial piece of new information released by the Opposition spokesperson yesterday, which is that the shadow Attorney General has now recused himself from advising the Leader of the Opposition and shadow Ministers on Ukraine and Russia. Quite apart from whether someone can be an effective shadow Attorney General when they are unable to provide legal advice on the most important issues facing this country—Ukraine’s security guarantees to name but one—this recusal raises serious questions. Does it include efforts to tackle the Russian shadow fleet, including the military action yesterday? Does it include sanctions policy and enforcement? Does it include tax policy? The BBC reports that Abramovich could owe the UK up to £1 billion in tax after a botched attempt to avoid tax on hedge fund investments via shell companies in the British Virgin Islands.

Thirdly, it is naive in the extreme to think it possible to separate the various legal cases that Mr Abramovich is engaged in and which affect UK national interests. According to The Times, Abramovich’s own representatives say that £1.4 billion of the proceeds from the sale of Chelsea cannot be released to a charitable foundation until legal proceedings brought by the Jersey Government are concluded. I would welcome clarification from the shadow Minister and the Minister on whether they consider that the ongoing litigation, and Mr Abramovich’s position on its connection to the transfer of the Chelsea FC proceeds, conflicts with the ability to transfer that money speedily?

Fourthly, there has been a concerted effort to conflate the vital principle of the right to legal representation and the prevention of conflicts of interest. I absolutely support the right to legal counsel of people I may find disreputable or worse, including sanctioned individuals—that is the basis of a strong legal system—but it is a choice to serve as shadow Attorney General, and it is a choice to represent a sanctioned Russian oligarch in the Jersey case. My view is that those two roles are incompatible. By recusing himself from giving the Conservative party legal advice on Ukraine and Russia, Lord Wolfson has himself confirmed that, in his view, it is not possible give that advice while being paid to represent Roman Abramovich, and that, given the choice, being paid to represent Roman Abramovich is more important to him than fulfilling his duties as shadow Attorney General. He could have made the opposite choice, but he did not.

I want our sanctions regime to be as effective as possible. I know that the Government are committed to continuing to learn and adapt as that regime evolves. I hope—I really mean this—that the Leader of the Opposition will clear up the mess that has been created and restore the cross-party consensus that is in our national interest.

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[Wendy Morton (Aldridge-Brownhills) (Con)]

I congratulate my right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith) on securing the debate. He has long been a determined and principled advocate for human rights, and it is entirely fitting that he brought this important issue before the House for debate. I thank Members from across House for their many contributions.

The debate is not about whether Magnitsky-style sanctions are justified—they are—but about whether they are being used as effectively as they should be, and whether the Government are doing enough to ensure that they deliver real consequences for those responsible for the gravest human rights violations.

The UK has one of the most developed autonomous sanctions regimes in the world. The Sanctions and Anti-Money Laundering Act 2018, introduced by the last Conservative Government, gives Ministers the power to impose asset freezes and travel bans on individuals and entities responsible for serious human rights abuses and corruption. That framework was designed to give the UK the ability to act decisively, in co-ordination with allies and without delay. Ministers spoke of a regime capable of reaching from Xinjiang to the murder of Jamal Khashoggi and to the persecution of the Rohingya. Those ambitions were right, but the test is how the regime is applied in practice, because sanctions that are slow, inconsistently applied or weakly enforced do not deter abusers; they signal hesitation.

Much of today’s debate has understandably focused on Russia, and rightly so. Since launching its illegal, full-scale invasion of Ukraine, Russia has been responsible for widespread and systematic abuses, including war crimes and crimes against humanity. The UK’s response has been significant. It was under the last Conservative Government that the framework for these measures was put in place; as a result, around £28.7 billion in Russian-linked assets have been frozen, but freezing assets is only part of the picture. How is this sanctions regime being enforced? How many investigations has the Office of Financial Sanctions Implementation opened in the last year? How many enforcement actions have been taken, and how many penalties have been imposed? Without visible and credible enforcement, there is a real risk that sanctions become something that can be managed, worked around or even absorbed as a cost of doing business.

Several Members have raised the issue of Russia’s so-called shadow fleet—the vessels and networks used to evade sanctions and to continue exporting oil. The Government have sanctioned a number of ships, which is welcome, but, as others have said, the shadow fleet is consistently adapting. It relies on complex ownership structures, opaque insurance arrangements and ship-to-ship transfers designed to obscure origin and destination. As the shadow Foreign Secretary, my right hon. Friend the Member for Witham (Priti Patel), has made clear from this Dispatch Box, enforcement needs to be relentless, not only identifying vessels but targeting the wider networks that enable this activity.

That brings me to a recent example that raises important questions about enforcement. Recent reporting has suggested that sanctioned Russian crude oil was delivered to a refinery part-owned by Lakshmi Mittal, a UK-resident businessman, using vessels that had already been blacklisted by western authorities. Those shipments reportedly involved ship-to-ship transfers and other practices commonly associated with sanctions evasion. Those reports may ultimately lead to enforcement action, and I have written to the director of OFSI to seek clarification, but they underline a wider point: if sanctions are to be effective, they must follow all those involved in enabling sanction busting, not just the ships themselves. That includes those who benefit from, facilitate, finance, or fail to exercise proper oversight over, the continued flow of Russian oil revenues.

When credible concerns are raised about potential sanctions circumvention involving UK-linked individuals or businesses, there must be confidence that those concerns are examined rigorously and without hesitation. Does the Minister know whether OFSI is actively assessing the activity reported in connection with Mr Mittal’s refinery? How does OFSI approach cases where supply chains are deliberately complex, span multiple jurisdictions and are designed to obscure accountability? How are the Government ensuring that enforcement action keeps pace with increasingly sophisticated attempts to evade sanctions in the energy sector?

It is also reasonable to ask whether the Government are prepared to apply the same level of scrutiny where individuals with UK links hold influential positions, such as directorships in major international institutions, banks and multinational companies, while also being connected to sectors implicating Russian energy flows. Can the Minister confirm that no individual, however prominent, and no corporate structure, however complex, is treated as being beyond scrutiny? Sanctions must be applied consistently and without exception, because their credibility depends on it.

Magnitsky-style sanctions were never intended to apply to Russia alone; they were designed to target serious human rights abuses wherever they occur, so let me turn to a number of other areas. First, there is Sudan, which has been mentioned today. We welcome the sanctions already imposed on individuals associated with the RSF, but the situation on the ground remains dire. Civilians continue to suffer, particularly in Darfur, so what more is being done? Are further designations under active consideration? How are sanctions being used alongside diplomatic efforts at the UN and with regional partners to press for a ceasefire and accountability?

Secondly, let me turn to people smuggling and human trafficking. These crimes, which have been mentioned today, involve exploitation, violence and abuse on a large scale, often facilitated by corruption and financial secrecy. In 2025 alone, more than 41,000 illegal migrants crossed the channel in small boats—nearly 5,000 more than in the previous year. Have the Government considered whether Magnitsky-style sanctions could be used more systematically against the leaders of those criminal networks, particularly where there is evidence of corruption or serious human rights abuse? What assessment has been made of that option?

There are a number of long-standing and deeply concerning situations in which Magnitsky sanctions remain highly relevant. In Hong Kong and China, the UK has sanctioned some officials for abuses in Xinjiang and for undermining rights and freedoms. That was the right decision, but serious concerns remain; for instance, not a single Chinese or Hong Kong official has been sanctioned in connection with the dismantling of Hong Kong’s freedoms, despite more than 200,000 Hongkongers relocating to the UK. The recent guilty verdict against Jimmy Lai is a stark reminder of the continued assault on the rule of law, press freedom and judicial independence in Hong Kong. Are the Government actively considering Magnitsky-style sanctions against Chinese Communist party officials involved in that case, including those responsible for political interference in the judicial system?

I also ask the Minister what action is being taken against those responsible for placing bounties on the heads of activists—including individuals now living here in the UK—in acts of clear transnational repression. The US has already sanctioned officials linked to those bounties; why has the UK not followed suit? More broadly, these issues sit alongside growing concerns about foreign influence and intimidation here in the UK, including through the proposed Chinese super-embassy in London, and the need for the effective implementation of the foreign influence registration scheme. How confident is the Minister that the UK’s sanctions policy, its approach to foreign influence, and its response to transnational repression are properly aligned?

Turning briefly to Iran, as we have seen, the regime’s response to peaceful protest has been brutal. Arbitrary detention, torture and executions continue, so what further steps are being taken to sanction those responsible for repression, and how is the UK working with partners to ensure that Iranian officials involved in those abuses cannot move or hide assets abroad? In Myanmar, nearly four years after the coup, the military junta continues to carry out widespread abuses against civilians, so are additional designations being prepared, and how is the UK ensuring that sanctions remain targeted, relevant and effective over time?

Finally, I turn briefly to Venezuela, where decisive action taken by the US against the Maduro regime has once again underlined the seriousness of the human rights and democratic crisis facing that country. Against that backdrop, can the Minister set out clearly the Government’s current approach to Venezuela sanctions, how human rights considerations are being reflected in policy, and whether Magnitsky-style sanctions remain firmly on the table?

[Joe Powell]

Would the shadow Minister consider briefly responding to my question about whether she thinks it is appropriate for the shadow Attorney General to be simultaneously advising shadow Ministers and a sanctioned Russian oligarch?

[Wendy Morton]

I am happy to respond. I refer the hon. Gentleman and his colleague who also raised that question, the hon. Member for Bolton West (Phil Brickell), to a letter that Lord Wolfson, the shadow Attorney General, has published. That letter sets out the position very clearly.

Returning to the subject of the debate, when we step back, a clear pattern emerges: sanctions only work if they are enforced rigorously, applied consistently and backed by the political will to follow the evidence wherever it leads. As such, I will close with a few final questions for the Minister. How are the Government strengthening enforcement against sanctions evasion, particularly in complex sectors such as energy and shipping, and where do they see as the next priority for designations? What steps are being taken to improve transparency and accountability to Parliament? If sanctions are to serve their purpose, they must be more than symbolic; they must be enforced, credible and consistent. That is what victims of human rights abuses deserve, and that is what the UK’s reputation as a serious and principled actor on the world stage requires.

Jimmy Lai Conviction

Joe Powell Excerpts

Monday 15th December 2025 Commons Chamber

[Yvette Cooper]

I know that the right hon. Member has campaigned and spoken out on this area for a long time, so let me recognise his continued speaking out, not just for Jimmy Lai, but more widely on issues around China and national security concerns. Let me be clear that we will continue to pursue this issue through international routes, as well as directly with China. He raises issues around sanctions. As he will know, we never talk about sanctions in advance, but we have expanded the sanctions not just around cyber-threats, but on issues such as support for Russia and the war on Ukraine.

I have addressed the question of the planning process for the embassy, but let me be clear that the UK continues to have strong restrictions on the numbers of people who can come to the UK and on the visa arrangements. All of that continues and does not change at all as a result of any planning decision. No state can bully and persecute the British people for exercising their basic rights. That is why we have been clear in our strong condemnation of this politically motivated prosecution and in calling for the release of Jimmy Lai.

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

I thank the Foreign Secretary for her tribute to Sebastien Lai, who, as she says, has joined us in the Gallery. This afternoon, Members from across the House heard from Sebastien—Jimmy’s son and a constituent of mine—and the international legal team supporting him and the family. Jimmy is now 78. A British citizen in failing health after five years in solitary confinement, he now faces a fifth Christmas away from his family, including a granddaughter he has never met, Sebastien’s first child. What message does the Foreign Secretary specifically have for Jimmy’s family, and can she assure them that everything will be on the table in what the Government decide to do next?

[Yvette Cooper]

We send our wholehearted support to Jimmy Lai’s family, who face the most difficult of circumstances, and to Jimmy Lai himself, who is a British citizen and has our strong support. We will continue to raise this issue in every forum that we can. The priority must be to draw on those humanitarian grounds, if nothing else, to get the immediate release of a man who is 78 and who has already been incarcerated for far too many years.

Sudan: Humanitarian Situation

Joe Powell Excerpts

Monday 15th December 2025 Commons Chamber

[Chris Elmore]

I am more than happy to look at any position at a multilateral level that supports the people of Sudan and brings a cessation of violence as quickly as possible, whether at the UN General Assembly, the Security Council or the Human Rights Council, as part of ongoing work across the multilateral space.

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

I welcome the additional aid and sanctions, and I praise my constituents who have done so much to keep Sudan in the public eye. What lessons have been learned from the fall of El Fasher to prevent the RSF repeating its tried and tested pattern in Tawila, where approximately 650,000 civilians and 300 aid workers, including British citizens, are at grave risk?

[Chris Elmore]

I thank my hon. Friend for his important question. Prevention work is ongoing to try to avoid further horrendous scenes. This conflict is ongoing and we are doing our very best at the UN level, across the European Union and working with the African Union to ensure that these conflicts do not continue and that we learn lessons as soon as possible.

Financial Transparency: Overseas Territories

Joe Powell Excerpts

Wednesday 5th November 2025 Westminster Hall

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

I congratulate my hon. Friend on securing the debate. Does he agree with the National Crime Agency that if it had open and accurate data on who owned and controlled those businesses, its operations would be much more effective? Those businesses are often linked to overseas territories, so the National Crime Agency cannot find their real owners and crack down on them.

[Phil Brickell]

I thank my hon. Friend for his passionate campaigning on this issue. He is absolutely right that we need more transparency to support our law enforcement agencies to tackle this issue, and I will come on to that now.

I pay tribute to the brilliant enforcement work undertaken by the National Crime Agency through its Operation Machinize. Just last week, police visited a number of addresses in my constituency, seizing £17,000-worth of goods in the process. I applaud the work of our enforcement agencies, but as I will explain, these tireless professionals need more support in their work.

Elsewhere, financial murkiness causes friction for British businesses. When I worked in finance, we would often conduct “know your customer” checks and hit a wall, because a trust or a corporate service provider was incorporated in a secrecy jurisdiction. The beneficial owner was always elsewhere. Every time we spoke to law enforcement, journalists or civil society about dirty money, the same names came up: the BVI, the Cayman Islands and Bermuda. It is farcical.

Banks, lawyers and accountants are on the frontline of anti-money laundering checks. Collectively, they spend over £38 billion a year on financial crime prevention—the equivalent of £21,000 every hour. A good-quality public register of beneficial ownership would make their work cheaper, faster and, frankly, more effective, unlocking the growth potential of our world-leading financial services sector.

On national security, since Russia’s barbaric invasion of Ukraine, the UK has quite rightly been at the forefront of the global sanctions regime against Putin. I commend the Minister for his personal leadership in ensuring that it is Putin and his cronies who pay for their unlawful war. The overseas territories have played an important role in enforcing those sanctions, freezing over £7 billion in Russia-linked assets. Indeed, initiatives like the Cayman Islands’ Operation Hektor, which has frozen £6 million of assets, deserve recognition.

Enforcement is only as strong as the weakest link. If opaque corporate structures allow sanctioned individuals to move assets through nominee companies, the whole system is undermined. That is why full beneficial ownership transparency is not a bureaucratic nicety; it is a national security measure. Opponents will say that UK law enforcement agencies have access to this information, but many agencies are critically underfunded and simply do not have the capacity to keep up the bewildering game of whack-a-mole that they play with bad faith actors.

Transparency International UK has identified around £700 million-worth of UK property linked to sanctioned Russian oligarchs that went unflagged in the UK’s register of overseas entities in 2022. Among them is a vast Hampstead estate valued at up to £300 million, reportedly owned by Russian chemicals magnate Andrey Guryev. Reports suggest the property was originally acquired using a company based in—you guessed it—the British Virgin Islands. I asked my friend Yaroslaw Tymchyshyn, chair of the Bolton branch of the Association of Ukrainians in Great Britain how he felt about this. He said:

“The government needs to seize all Russian assets which should be used to fund the Ukrainian war effort. It irks us that the oligarchs are living the high life in the west, whilst the Russians continue to bomb and use drones to kill civilians, including children.”

What should I say to him?

Elsewhere, the Office of Financial Sanctions Implementation has reported that since February 2022 more than a quarter of suspected sanctions breaches have involved intermediary jurisdictions, including the BVI and Guernsey. This level of financial secrecy allows sanctioned elites and hostile actors to hide their wealth, undermining Britain’s sanctions regime and weakening our ability to deter aggression. When dirty money flows unchecked through our financial system, it erodes the credibility of our foreign policy, drives up the cost of energy and food, and ultimately fuels Putin’s brutal war in Ukraine.

In addition, criminal gangs involved in drug smuggling, people trafficking or protection rackets need to launder their ill-gotten gains into the regular economy. The financial secrecy afforded by the overseas territories gives the perfect cover to dodgy accountants, lawyers and corporate service providers. Edin “Tito” Gačanin, a Dutch passport holder but a Bosnia and Herzegovina native, was convicted last year of trafficking drugs from South America into Europe. It has been alleged that Gačanin is connected to the infamous Kinahan cartel, one of Europe’s most notorious organised crime gangs. As reported by the BBC, that cartel has flooded UK streets with drugs and guns over two decades. According to an investigation by The Times, in order to avoid US sanctions, the Kinahans recently sought anonymity using jurisdictions such as the Cayman Islands, the BVI and the Isle of Man.

Even organised fraud finds shelter in the overseas territories. Just last month, the Foreign Secretary rightly announced sanctions on a global scam network led by Cambodian citizen Chen Zhi, who allegedly used BVI companies to launder profits. Those profits were reportedly routed into a £12 million mansion in north London, a £100 million City office block and a string of luxury flats, while victims across the world were left penniless. Even when the authorities do catch fraudsters, financial secrecy in our offshore territories inhibits our ability to hold criminals to account.

Covid fraudster Gerald Smith was prosecuted by the Serious Fraud Office, but tried to use a BVI company to obstruct the seizure of a flat he owned to avoid paying compensation, resulting in a direct loss to the taxpayer. He still owes £82 million—and he is not alone. Just this summer the SFO told the all-party parliamentary group on anti-corruption and responsible tax, which I chair, that 25% of all cases that it is currently investigating have links to the overseas territories.

A final point on national security: I am gravely concerned that secrecy jurisdictions open a back door into our politics. The FinCEN files reveal that in 2016 the husband of Lubov Chernukhin received more than £6 million from Suleiman Kerimov, who was sanctioned in 2022 by the UK for his connections to Putin. Kerimov used a BVI company to conceal that payment. Lubov Chernukhin has donated more than £2 million to the Conservative party since 2012.

I have additional concerns about the Electoral Commission’s capacity to keep up with cryptocurrency donations, which Reform has reportedly already begun accepting. Indeed, the crypto platform Zebec sponsored a panel at Reform’s party conference on “Strengthening the Rule of Law: legislative reform?”. Zebec is, unsurprisingly, ultimately controlled by an entity registered in the British Virgin Islands, as reported by The Observer. Protecting our democracy from foreign interference is made all the more difficult by crypto firms involving themselves in our politics while hiding behind the veil of corporate secrecy, enabled by our overseas territories.

We come on to international leadership. Financial secrecy in jurisdictions under the Union flag does not just damage our economy; it damages our credibility. The UK rightly prides itself on being a global leader in the fight against economic crime. We have made real progress with the Economic Crime (Transparency and Enforcement) Act 2022, the Economic Crime and Corporate Transparency Act 2023 and the register of overseas entities, by boosting the powers of Companies House, and with the Treasury’s recent welcome announcement on reforming our anti-money laundering framework.

Next year, when the UK hosts the countering illicit finance summit, the Government will have a chance to show further leadership, but the UK cannot credibly call on others to improve transparency if the jurisdictions flying our flag lag behind on beneficial ownership. Our diplomats work tirelessly to promote British values overseas—the rule of law, fair competition and integrity in public life—yet, when investigative journalists, non-governmental organisations or foreign Governments look into global corruption cases, the trail often runs through a British overseas territory. That damages us and weakens our hand in international negotiations, giving cover to regimes that would keep their elites’ wealth hidden.

What needs to happen? In 2018, MPs led by the right hon. Member for Sutton Coldfield (Sir Andrew Mitchell) and the Government’s anti-corruption champion, Baroness Hodge, successfully secured an amendment to the Sanctions and Anti-Money Laundering Act 2018. I pay tribute to them for their tenacious campaigning over many years. Their amendment required all overseas territories to introduce registers of beneficial ownership by 2020. That deadline slipped to 2023, and then to 2025—another deadline that was largely missed.

The UK’s overseas territories are a valued and integral part of our British family. Their ties to us are deep, and their prosperity is something we rightly cherish. They are our partners in defence, trade and increasingly in tackling the great global challenges of our age: climate change, migration and the rule of law. But being family means being honest, and I am afraid to say that certain jurisdictions have not covered themselves in glory by obfuscating, delaying, ignoring and frustrating the will of this Parliament. It is not acceptable. Missing deadlines sends a “terrible message” to the world, according to the current Deputy Prime Minister, in response to a question I asked him earlier this year when he was before the Foreign Affairs Committee.

This speech is not lazily tarring all overseas territories with the same brush. Far from it: Gibraltar, Montserrat and St Helena have delivered and deserve praise. The Falkland Islands are on track to implement by mid-2026 and are engaging constructively with the UK Government. Bermuda has made positive noises, although there is still room for improvement in its recent statement on next steps under its Beneficial Ownership Act 2025.

Elsewhere progress has been slow and patchy. The British Virgin Islands, in particular, remain a serious concern. Transparency International UK has warned that the British Virgin Islands’ proposed company register framework is not compatible with global transparency standards, with journalists being granted information on only a subset of data, rather than the beneficial ownership that they record, even baking in a tip-off for people being investigated, giving them a chance to object to their information being shared with a journalist. The Cayman Islands have also been slow to move from consultation to implementation. Although some good work has been done, substantial areas remain, including exorbitant costs and an unreasonably high threshold for granting applications from civil society and journalists.

The fact remains that some of the largest financial centres under the British flag are still operating secretive structures that enable tax evasion, sanctions evasion and kleptocracy. Occasionally, capacity restraints are cited. The UK Government rightly have an obligation to step in and provide technical support. There is also a suggestion that some jurisdictions do not want to fulfil their promises, lest they lose their competitive advantage.

To those naysayers, I say that the UK has an obligation to help its overseas territories to diversify their economies. It can be done, as in the case of the Isle of Man, where considerable work is under way to invest in offshore wind. Let me be clear: transparency has not hindered economies elsewhere. The UK has had a fully public register for years, and the sky has not fallen in. Research commissioned by the UK Government estimated that corporate transparency reforms produce data worth up to £3 billion to the public and private sectors. Look at Gibraltar, which has continued to grow, driven by insurance, gaming and fintech, even after introducing full beneficial ownership transparency.

I have a number of asks of the Minister. Last month, the Prime Minister’s anti-corruption champion, Baroness Margaret Hodge, visited the BVI to understand what progress it is making towards fully open registers of beneficial ownership. What update can the Minister give us on that visit? With November’s Joint Ministerial Council rapidly approaching, will he remind those overseas territories that continue to delay the implementation of publicly accessible registers of beneficial ownership, with the maximum possible degree of access and transparency as per last year’s joint communiqué, of their commitment?

Concerningly, the 2024 JMC communiqué contained the following line:

“We note the UK Government’s ambition that Publicly Accessible Registers of Beneficial Ownership (PARBOs) become a global norm and its expectation that Overseas Territories and Crown Dependencies implement full PARBOs.”

Will the Minister confirm that the overseas territories and the Crown dependencies are still expected by His Majesty’s Government to implement fully public corporate registers? If legitimate-interest access filters are an interim step, what assurances can he give me that journalists, civil society organisations and others with a genuine interest will have open and repeated access to company data in the overseas territories? Finally, will the Minister meet me and Yaroslaw from the Bolton branch of the Association of Ukrainians in Great Britain to reassure him that the Government are doing all they can to bring an end to Putin’s barbaric war in Ukraine, including by enforcing economic sanctions in the OTs?

My speech does not seek to undermine the important constitutional relationship between the overseas territories and the UK. I welcome, for example, the £7.5 million recently provided by the UK to Commonwealth member Jamaica after Hurricane Melissa, alongside $1.2 million from the Cayman Islands. But partnership brings mutual obligations, which must include the shared commitment we have all made to openness, integrity and accountability, because every pound laundered through a BVI shell company and every mansion bought with stolen public funds is a stain on our national integrity.

Cleaning up this system is not just an act of international justice; it is a patriotic duty. We cannot build clean foundations for growth while our financial system remains a refuge for dirty money. Public, accessible and verifiable registers of beneficial ownership are not a burden; they are our competitive advantage. They enable cheaper due diligence for firms and cleaner supply chains for investors, they protect small businesses by making procurement fairer and fraud harder, they strengthen our economy by rooting out corruption before it takes hold, and they give the British people confidence that when they pay their taxes, buy a home or open a small shop on the high street, the system is fair and honest.

The autumn Budget is scheduled for 26 November. After her Budget speech, tradition dictates that the Chancellor will go to the Two Chairmen for a well-earned gin and tonic. That pub, which I hasten to add is not accused of any wrongdoing, is owned via the Isle of Man and leased to Greene King, which is itself owned via the Cayman Islands. I think that encapsulates just how out of hand the shadow financial system has become.

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[Jim Shannon (Strangford) (DUP)]

It is a real pleasure to serve under your chairship, Mr Twigg. I thank the hon. Member for Bolton West (Phil Brickell) for leading today’s debate with such a detailed, informative speech. We are all impressed by the way he set the scene.

This United Kingdom is made up of four countries that are directly impacted by public finances in how we can distribute allocated money and what we have the capacity to deal with, so this debate is important. There is already a strain on public finance; we all witness it every day. We see our public Departments struggling, especially health and education. Whether it is here or back home, the issues are the same. We must also note that the Chancellor has not yet ruled out tax rises ahead of the Budget. The public are already taking on the burden of the UK’s debt.

We have seen, and the Government are aware of, countless instances of tax evasion and avoidance by people in the United Kingdom, especially in the jurisdiction of the Cayman Islands. That contributes to lost tax revenues across the country. My issue is the loss of tax revenue—money that should be spent in this country on our own people. The UK Treasury loses billions each year to offshore tax avoidance. Northern Ireland relies on the block grant from Westminster through the Barnett consequentials for our devolved Government, so this tax avoidance and evasion means less funding for crucial sectors in Northern Ireland such as health, education and infrastructure. That is frustrating for people. [Interruption.]

[Joe Powell]

Will the hon. Gentleman give way?

[Jim Shannon]

Just for a second; thank you.

[Joe Powell]

I thank the hon. Gentleman for joining the last debate we had on this topic in this Chamber seven months ago. Does he agree that the link we are discussing between the overseas territories and the sorts of criminal activity that we all see demonstrates that the British public would be on side with cleaning up this mess?

[Jim Shannon]

I thank the hon. Gentleman for giving me the chance to get my cough sorted; I appreciate that very much. I agree with him.

There is obvious unfairness in taxation, especially because citizens face higher scrutiny than wealthy users of offshore arrangements. For example, the average person will at some point in their life be hit with a tax bill—that dreaded letter that comes through saying, “You haven’t paid enough tax.” The same does not go for those who partake in tax avoidance. The Treasury should do more to ensure that such people pay into the system just the same as everybody else.

The UK’s register of overseas entities 2022 revealed that several properties in Northern Ireland were held via entities in secrecy jurisdictions—more evidence of offshore-linked ownership of commercial and residential assets, especially in Belfast. Such investments can inflate property value and cause confusion over true ownership of property. That has a great impact on the ordinary person.

My focus and my responsibility are my constituents and the money that they must lose from their wages each month to increase Government spending. There must be more clarity and better insight. Government must do more to reinstate trust with the public, because there is disillusionment when it comes to finance. The Minister is a good and honest man. I look to him for an acknowledgment that Northern Ireland and the devolved nations suffer as a result of this and that he will endeavour to do more for this country to protect finance and, ultimately, my constituents.

--- Later in debate ---

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

I congratulate my hon. Friend the Member for Bolton West (Phil Brickell) on securing this debate and on his election to the chair of the excellent all-party parliamentary group on anti-corruption and responsible tax. I thank other Members here and the right hon. Member for Sutton Coldfield (Sir Andrew Mitchell) for championing this issue.

We last met in this Chamber to debate this issue seven months ago to the day, so it is helpful to have another debate to check on progress and demonstrate to the overseas territories the strength of cross-party feeling about it. Such debates do have an impact. My hon. Friend the Member for Bolton West and I were featured in a cartoon in a BVI newspaper not long ago for bringing this issue up so frequently in the House—I take that as a badge of honour.

The Government’s commitment to make London the anti-corruption capital of the world, as opposed to a dirty money capital, is extremely welcome. I know the Minister is personally committed to that agenda, and I look forward to the anti-corruption strategy in the next few weeks.

[Sir Andrew Mitchell]

Although the hon. Gentleman may have been in a cartoon, Baroness Hodge and I were the subject of a demonstration in one of the overseas territories, with placards saying, “Let’s hang Mitchell and Hodge”.

[Joe Powell]

I am sure we all agree that we would not support that action.

I want to make a serious point about where progress has been made. Some of us recently met the leader of Gibraltar, Fabian Picardo. Gibraltar now has an open register, and he told us that it has had no impact on investment there. In fact, it has attracted a different type of investor: those making sustainable, long-term investments into a reliable market where financial secrecy is not undermining the strength of the financial services.

I note that in the Public Gallery there is a representative of St Helena, which has made great progress—as others have said, we are also meeting representatives of the Cayman Islands and Bermuda. Although it is not perfect, there has been political commitment from those leaders to make progress and work together.

But the harms are still severe: serious organised crime, drugs on our streets, the high streets issue that many hon. Members have spoken about, sanctions evasion, tax dodging, environmental crime, destruction of tropical forests and property. I invite Members to join me on our “Kensington Against Dirty Money” walking tour, which Baroness Hodge and I conduct in my constituency. The No. 1 source of foreign ownership of property—my constituency has 6,000 such properties—is the BVI. The question is: why? It is not a victimless crime, and we need to understand why it is happening.

Let me very briefly talk about next steps. I really welcome Baroness Hodge’s trip to the BVI. She is a fearless champion for this issue. It would be good to understand the BVI’s red lines for a legitimate interests test. I think it should be broad, reliable and repeated access for those journalists who have helped to uncover so many issues in the past, while maintaining the Government’s long-term goal of publicly accessible beneficial ownership registers as the gold standard.

The summit on illicit finance next year is a huge opportunity; it was great that the Deputy Prime Minister confirmed that on the world stage at the UN General Assembly this year. The summit will be 10 years on from the 2016 anti-corruption summit, where public registers of beneficial ownership for UK companies were first introduced. Could the summit be the moment when we finally move forward on this issue, too?

Ukraine

Joe Powell Excerpts

Wednesday 15th October 2025 Commons Chamber

[Yvette Cooper]

I thank the hon. Member for his kind words. I agree with him that there must be no other option for Putin than to cease aggression and that this is ultimately about hope for Ukrainian children.

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

I strongly welcome the sanctions targeting the $108 billion in oil revenue that the Kremlin received last year and the progress on the $350 billion in frozen Russian sovereign assets. I applaud the Foreign Secretary and the Chancellor for their efforts in building a coalition with the EU and others to move from using the interest payments to using the capital. Does she agree that that recent breakthrough shows that legally this money should be treated as a downpayment on the reparations for the horrific harm that Russia has caused, which we know it will do everything to avoid paying?

[Yvette Cooper]

My hon. Friend makes an important point. The EU has set out work linking the issues around assets to reparation payments. We welcome that work and we believe that there is a strong basis to go forward. We need to do so in a co-ordinated way and recognise the importance of supporting Ukraine.

Gibraltar

Joe Powell Excerpts

Thursday 12th June 2025 Commons Chamber

[Mr Lammy]

On the first point, we have stuck to the political framework that was negotiated and agreed back in 2020 by the then Foreign Secretary, the former Member for Esher and Walton. I have a photograph from the agreement that was struck, of where we would be locating effectively a joint facility in the airport. There will be a second line queue, as there is in St Pancras, and there will be Spanish border guards and police situated in that second line. Of course, if there was an alert at that point—not on its own, but at that point—there would be a hand-back facility with the Gibraltar police, so they will be working alongside that Spanish team. If there was an alert, the individual would have the right to legal advice. They would be able to either return to their country of origin—let’s say the UK—or voluntarily go over to Spain to face questions. The key thing is that it is joint and alongside the work and efforts of the Gibraltar police and the Gibraltar customs and border guards.

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

I strongly welcome this political agreement and congratulate the Foreign Secretary and the ministerial team on achieving it. I recently met Chief Minister Picardo, alongside my hon. Friend the Member for Bolton West (Phil Brickell), the right hon. Member for Sutton Coldfield (Sir Andrew Mitchell) and other members of the all-party parliamentary group on anti-corruption and responsible tax, to welcome the progress that Gibraltar has made on anti-money laundering, including through publicly accessible registers of beneficial ownership. Will the Foreign Secretary confirm that it is the intent in the future EU-UK agreement that there will be a section on anti-money laundering? Does he agree that it sends a message to other overseas territories that tackling economic crime can be a strength in terms of business confidence and investment, and not something to be feared?

[Mr Lammy]

I am grateful for my hon. Friend’s work in this area. He will recognise that Gibraltar, as an overseas territory, is at the strong end of tackling issues of illicit finance and is paving the way. There is more work to do on this issue and particularly on beneficial ownership. I intend to take this forward, working alongside our new envoy in this area, Baroness Hodge, and culminating, I hope, in an event in London next year.

Israel and the Occupied Palestinian Territories

Joe Powell Excerpts

Tuesday 10th June 2025 Commons Chamber

[Mr Falconer]

I thank my hon. Friend for his kind words and for his commitment to issues throughout the region. He has been raising the concerns of his constituents with me since we were both first elected, and I am sure that he will continue to do so. I know that many people in Chipping Barnet are focused not just on the horrors that we have discussed in relation to aid provision and on the violence, but on the circumstances of the hostages, who remain very much in our minds. There is a British mother who is waiting for the safe return of her son. We will not cease our efforts to try to secure the release of those hostages.

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

I welcome the sanctions against Smotrich and Ben-Gvir, and the coalition that was built to exert maximum pressure. It is very significant, as the Government’s sanctions have been in other contexts around the world relating to human rights, corruption and other issues. Next week’s conference will be critical to, in the Minister’s words,

“defend the vision and viability of two sides living side by side in peace.”

Surely it is time to recognise the state of Palestine and agree a credible timeline with allies to bring this about. Will the Minister confirm that that is the Government’s objective?

[Mr Falconer]

My hon. Friend has extensive experience of international coalition building and of taking steps against those who support corruption or who, as in this case, breach human rights. I can confirm that we will work with our friends and allies to try to preserve a path to a two-state solution at the conference next week, in the way that he sets out.

Israel and the Occupied Palestinian Territories

Joe Powell Excerpts

Tuesday 20th May 2025 Commons Chamber

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

As others have said, 14,000 babies are at immediate risk of starvation—this could not be a more serious moment. I welcome the suspension of trade negotiations and the expansion of sanctions. However, with other sanctions designations—on human rights and corruption; on Russia, Georgia, Belarus and others—we have taken them to the political level. Will the Foreign Secretary consider extending the sanctions regime to the political decision makers advocating for ethnic cleansing and the takeover of Gaza?

[Mr Lammy]

My hon. Friend is one of the House’s experts on how our sanctions regime works, and I can reassure him that all that he has outlined is under consideration?

Oral Answers to Questions

Joe Powell Excerpts

Tuesday 13th May 2025 Commons Chamber

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

The reduction to 0.3% will require painful decisions, but there are innovative financing mechanisms on which Britain could lead—for example, increasing special drawing rights, using the exchange equalisation account, guarantees and debt relief. Can the Minister commit to working with the Treasury to look at all these non-ODA instruments in which Britain could show leadership and fund our development programmes?

[Stephen Doughty]

I absolutely can make that commitment. I will not go into any individual item on my hon. Friend’s list of suggestions, but as I said in an earlier answer, we are looking at all measures by which we can support development and economic growth globally, working with multilateral partners.

Israel: Refusal of Entry for UK Parliamentarians

Joe Powell Excerpts

Monday 7th April 2025 Commons Chamber

[Mr Falconer]

I know that my neighbour, the Father of the House, the right hon. Member for Gainsborough (Sir Edward Leigh), has also been on such a delegation. Like the hon. Member, he reported an incident with settlers. I refer the House to my previous statements about the expansion of settler violence and illegal settlements in the Occupied Palestinian Territories.

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

The power of bearing witness, as my hon. Friends were attempting to do, was shown at its most extreme in recent days by the paramedic Refat Radwan, who filmed the recent attack on 15 aid workers by the IDF before losing his own life. Does the Minister agree that in this case there must be accountability and not a cover-up?

[Mr Falconer]

I do believe that wherever there are incidents against humanitarian workers, including the one that my hon. Friend mentions, there must be full accountability.