Overseas Territories: Tax Transparency

Karl Turner Excerpts

Wednesday 5th February 2025 Westminster Hall

[Joe Powell]

I completely agree. Without transparency, we cannot follow the money. We have some prominent examples of properties owned by sanctioned oligarchs that came into the sanctions regime only after investigations uncovered those assets. Keeping the anonymous trust option available, without the requirement to declare the true owners, allows for exactly the sort of behaviour that my hon. Friend outlines.

The main opposition is from some highly self-interested trust lawyers, so I urge the Government to take on those claims and bring trust-owned property into the register, which would help us not only to fight economic crime but to revitalise our high streets, where buildings often sit empty because enforcement action cannot be taken when the true owners cannot be tracked down. Indeed, some of my constituents were evicted using a spurious section 21 notice by an anonymous landlord who was based overseas in a tax haven.

My local walking tour, as part of the Kensington Against Dirty Money campaign, ends outside Roman Abramovich’s frozen mansion, which he purchased for £120 million, on Kensington Palace Gardens. In the past week or so, Abramovich has again been in the news, this time for allegations that he owes approximately £1 billion in UK taxes. At the heart of this story are, again, the UK overseas territories. Abramovich and his advisers used a complex web of corporate structures, via Cyprus and the BVI, to use money from the sale of Sibneft back to the Russian Government at huge profit in 2005. They set up approximately 200 hedge funds and maintained that the operations were happening in the BVI, but it has now been uncovered that the real activity was continuing in London—indeed, in Stamford Bridge itself.

This is potentially the biggest tax case since Bernie Ecclestone, and it is vital that His Majesty’s Revenue and Customs has the resources it needs to investigate. Enforcement of the rules and regulations is critical to recovering as much money as possible for the Exchequer and supporting the Minister’s efforts to improve the public finances. It is also time to upgrade our anti-money laundering supervision regime for professional bodies such as accountancy and legal firms, so that dirty money does not flow through the City. The previous Government opened a consultation, but it has not been responded to.

This is urgent, because Abramovich’s is not an isolated case. For years, the BVI has been the global destination of choice for those seeking maximum secrecy for their money. It featured prominently in the Panama papers, in which half of the exposed entities were linked to the BVI. That is why Parliament has clearly stated its will that public registries of beneficial ownership should be implemented across the overseas territories and Crown dependencies.

At the first Joint Ministerial Council of this new Government, in November last year, the BVI, alongside other overseas territories, promised reforms to ensure maximum transparency, and the Government reiterated their commitment to full public access in due course. I absolutely support the Government in this mission, which is why it was so deeply disappointing to see the BVI’s proposals around company registries, which were published last month. Access would be severely restricted. One provision would even allow company owners to be notified not only that someone is attempting to uncover their identity, but of who is making the request and why, putting investigative journalists and anti-corruption activists at risk of legal or physical intimidation. Worse still, that warning system could tip off criminals and give them a head start, allowing them to move illicit assets before enforcement agencies can act. Such measures do not protect business or privacy; they protect kleptocrats and criminals.

We know it can be done: Gibraltar has shown us what can be achieved. It introduced a public register that is similar to the one that the UK has had for several years. If Gibraltar can do it and we can do it, so can the BVI, the Cayman Islands, Bermuda and all the overseas territories. We must not let our Crown dependencies off the hook, either.

Many overseas territories have cited the privacy concerns outlined in the European Court of Justice rulings, but I encourage them all to review the sixth anti-money laundering directive, which would ensure that journalists, civil society, law enforcement and businesses with anti-money laundering duties all have access to the register anonymously and in full. I continue to believe that public registers are the best solution for the overseas territories and Crown dependencies, but minimum progress would be to meet that European regulatory standard.

It is clear from all the evidence—I expect we will hear much more today—that we need to do far more collectively to support the overseas territories to make progress on economic crime. The path forward is challenging, but I know the Government are seized of its importance. The overseas territories must meet the June deadline to make progress towards public registers. There must be no further delays. Trust-owned property should be included in the register of overseas entities. AML supervision should be strengthened to halt the enablers of dirty money. HMRC, the National Crime Agency and other enforcement agencies must proactively make cases and have the skills and resources they need.

To galvanise our international partners, the Foreign Secretary’s proposal for a summit of financial centres here in London would create a focal point for aligning rules and policies. I hope this debate will galvanise support across the House for the vital mission of tackling corruption and economic crime.

[Karl Turner (in the Chair)]

I remind Members that they should bob if they wish to take part in the debate.

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[Several hon. Members rose—]

[Karl Turner (in the Chair)]

Order. Before I call the next speaker, I will impose an informal time limit of five minutes.

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[Several hon. Members rose—]

[Karl Turner (in the Chair)]

Order. With a time limit of four minutes, I call Bobby Dean.

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[Mark Garnier]

I hope my right hon. Friend will not mind if I do not, because I am conscious that we have very little time.

It remains a concern that major financial centres such as the British Virgin Islands, Bermuda and the Cayman Islands remain resistant to these measures. Will the Exchequer Secretary provide an update on what pressure the UK Government are placing on those overseas territories that are not fully complying with the Sanctions and Anti-Money Laundering Act 2018?

The UK Parliament has sovereign powers over the overseas territories. Therefore, we cannot allow any jurisdiction to water down these proposals. The previous Government allowed for an interim step of a legitimate interest model, which would allow access to beneficial ownership information by members of the public with a legitimate interest in accessing it, including media and civil society organisations involved in the fight against illicit finance and money laundering. Even if that might be a stepping-stone for some overseas territories, I hope the Minister will confirm that it should not dilute efforts to create a public register.

Overseas territories must align with the UK’s own standards and comply with UK law. What is the Government’s plan if further delays occur? Will there be consequences for non-compliance? This Government and the previous Government have repeatedly stated that tackling illicit finance is a priority—we agree on that point. The current Foreign Secretary has declared:

“The golden age of money laundering is over”.

I am sure the Minister would agree that our overseas territories and Crown dependencies must not become the weak link in the fight against money laundering and corruption.

[Karl Turner (in the Chair)]

Before I call the Minister, I remind hon. Members that the Member in charge normally has two minutes at the end to wind up. I would be grateful if the Minister bore that in mind.

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[Joe Powell]

If I am allowed to.

[Karl Turner (in the Chair)]

Sure.

[Mr Mitchell]

We have another three minutes, so I am keen to help out.

To be clear, we are talking here about dirty money and the source of this money—money stolen from Africa and from Africans. The baddies have all the best tunes, and they have the money to get their way, so the forces of law and order are always fighting to catch up. It is important to emphasise the open registers. The mist fell from all our eyes when, thanks to the BBC and The Guardian newspaper, the Paradise and Panama papers were published. They showed that, without this open register approach, we cannot join up the dots to see what those clever villains are doing, catch them, trap the money and hopefully return it. The hon. Gentleman and I agree completely, but I hope that we can carry the Government with us.

Draft International Criminal Police Organisation (Immunities and Privileges) Order 2023

Karl Turner Excerpts

Wednesday 17th May 2023 General Committees

[Anne-Marie Trevelyan]

Interpol is the international network, working together across all parts of the world. The SI will allow it to hold its annual general assembly here in the UK next year, and we are pleased and proud to be hosting it.

The hon. Member for Hornsey and Wood Green raised an important question about the privileges and immunities that will come from the SI for representatives of countries such as Russia or China. They will be entitled to send representatives. All 195 members of Interpol receive an invitation to every general assembly, and the UK is required to honour those invitations. Ministers have considered that aspect and the associated risks very closely, and I highlight that, other than for the secretary general, the diplomatic immunity provisions are very small for the wider cohort and relate only to official activities going on while those delegates are here in the UK for the general assembly. Otherwise, they remain normal citizens.

[Karl Turner (Kingston upon Hull East) (Lab)]

This seems a little concerning. I think I am right in saying that Russia has in the order of 80 regional units across the country. I would imagine that it would have a fairly sizeable delegation when the general assembly takes place in this country. What safeguards will be in place to ensure that Russia does not get up to things that it should not on our turf?

[Anne-Marie Trevelyan]

As I say, the relevant privileges and immunities being vested are limited to the official duties of all delegates invited to the general assembly. I will ensure that a Home Office Minister comes back to the hon. Gentleman in a private meeting to discuss the technicalities. He is asking about something that we do day in and day out. The Home Office team works to ensure that anyone who would wish the UK harm is clearly understood to be a risk, but the SI affords protections required for those delegates from all 195 countries to discuss the international policing issues that they are all tackling.

[Karl Turner]

I am grateful to the Minister for giving way again. I think it would assist the Committee if the Minister responsible put better and further detail together, perhaps by way of correspondence to Committee members, or indeed to the official Opposition.

[Anne-Marie Trevelyan]

I will happily set that in motion. As ever, the realities of treaty management, which are held by the Foreign, Commonwealth and Development Office, do not connect to the day-to-day delivery of these events, so I will ensure that the relevant Minister gets back to the hon. Member for Hornsey and Wood Green and to the Committee.

I thank hon. Members for raising important issues and making contributions to the debate. I hope that I have answered matters satisfactorily. We will pick up on a couple of issues with the Home Office team. In granting these privileges and immunities, we will be able to host the Interpol general assembly in 2024, which will put us in a good place to continue to influence and work with the organisation. Key to all of this is being better positioned to combat international criminality. I therefore thank Committee members and trust that they will support the order.

Question put and agreed to.

Oral Answers to Questions

Karl Turner Excerpts

Tuesday 21st November 2017 Commons Chamber

[Rory Stewart]

Badakhshan is of course a region of Afghanistan, so interference in Badakhshan from Pakistan would be a serious issue. My hon. Friend may perhaps be referring to Balochistan, where we continue to raise reports of human rights abuses with the Government of Pakistan.

[Karl Turner (Kingston upon Hull East) (Lab)]

My constituent Laura Plummer has been imprisoned in Hurghada, Egypt, for several weeks, having taken Tramadol with her to help to manage her boyfriend’s back pain. She might be tried on Christmas day. We make no criticism of the Egyptian authorities, but will the Foreign Secretary continue to make representations to them to make it known that this was a very naive young woman who has made a very bad mistake, but has not in her mind committed a crime?

[Boris Johnson]

I recognise the work that the hon. Gentleman is doing on behalf of his constituent and I thank him. We are providing every consular assistance to Laura Plummer and, as he may know, I have intervened in the matter with the Egyptian Foreign Minister, Sameh Shoukry.

Oral Answers to Questions

Karl Turner Excerpts

Tuesday 17th June 2014 Commons Chamber

[Mr Swire]

As the right hon. Gentleman knows, one reason why so many people from around the world wish to come to the United Kingdom is the excellent shape of the British economy, which is a direct result of the early action taken by this Government. He, like others, will no doubt be supporting our long-term economic plans.

[Karl Turner (Kingston upon Hull East) (Lab)]

9. What his priorities are for the UK’s relationship with India.

[The Secretary of State for Foreign and Commonwealth Affairs (Mr William Hague)]

The Chancellor and I will visit India shortly to meet the new Government. Our priorities will be to expand trade and investment, enhance our education links, strengthen co-operation on defence and security, increase collaboration on science and innovation, and build our people-to-people links through the UK’s 1.5 million Indian diaspora.

[Karl Turner]

Will the Foreign Secretary prioritise speaking with the Indian authorities about the case of the ex-soldier Ray Tindall from Hull who, while working on a US pirate patrol vessel, was arrested for straying into Indian waters? As I understand it, the court case has been constantly adjourned. His family are desperate to find out when he will be returned to the UK.

[Mr Hague]

We are constantly raising this issue. I have done so myself and the Minister of State, my right hon. Friend the Member for East Devon (Mr Swire), does so regularly. If it is not concluded, it will, of course, be a topic of conversation during my visit to India shortly. We hope that the court proceedings—the latest of which was, I think, scheduled for today—will be resolved soon. We must not prejudge what will happen in a court, but we will absolutely keep on top of this case.

European Union (Referendum) Bill

Karl Turner Excerpts

Friday 5th July 2013 Commons Chamber

[Graham Stringer]

I agree. The arguments lack quantification—that would be one way of putting it. On the notion that the European Union is an unalloyed good idea for jobs, have people not been watching what the euro is doing not just to those countries that are in the euro, which are getting into a competitive deflationary situation, but to countries such as ours which trade with Europe? Hundreds of thousands and millions of jobs are being destroyed by the European Union. It is not helpful to our economy. A referendum would be the start of saying to the European Union, “This cannot carry on. You are damaging the whole of the European Union’s economy.”

[Karl Turner (Kingston upon Hull East) (Lab)]

Will my hon. Friend give way?

[Graham Stringer]

No. A lot of people want to speak.

I will vote for the Bill today. It is not a perfect Bill. I hope that it can be amended to bring the date forward, which would help with uncertainty. One reason for that is that whatever good motives people might have to renegotiate our position within the European Union, that is not possible. Most of the problems that we have with the European Union are enshrined in the treaties. Do hon. Members really think that Ireland, Germany, Italy and the newer members of the EU, many of whom have to have referendums before they can take a decision on the constitution, will vote to change the treaty of Rome, or of Lisbon, Nice, Amsterdam, Maastricht, or any of the others? Many of the powers that have gone from this Chamber have gone through those treaties. I do not believe that renegotiation is possible.

Some hon. Members have said that the electorates and leadership of other European countries want changes similar to those that we want. I simply do not believe that. Many European Union countries are happy with ever-closer union, for quite valid reasons. Many of them have been through a period of fascism or communism, or some lack of democracy, and, rightly or wrongly, they see the European Union as protecting them against that. They do not see their future in the way that we do as a trading nation. The trade of 90% of EU countries is within the EU. Only 50% of this country’s trade, a declining amount, is with the European Union.

A great deal more could be said on this issue, but it is fundamental to the relationship between this House and the people of this country that they are given a chance to vote. The Bill can be improved. They will eventually get a vote, one way or the other, during the next four or five years. We might as well do it willingly and thoughtfully.

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[Mr Frank Field (Birkenhead) (Lab)]

I, like my hon. Friend the Member for Birmingham, Edgbaston (Ms Stuart), congratulate the hon. Member for Stockton South (James Wharton) on proposing the Bill. I have been in the House for a number of decades and if I could give a speech as good as he gave today I would be pleased. To do it in almost his maiden speech was simply stunning, and to have had the Prime Minister sitting on the Front Bench listening to his gifts of delivery cannot have done his future career any harm whatsoever.

[Karl Turner]

Three and a half million jobs, Frank.

[Mr Field]

That sort of intervention is pathetic. I think it is quite reasonable to congratulate the hon. Member for Stockton South. If we think that we can win elections by not recognising the truth and paying tribute to people, our time in politics is wasted.

I have one point to make, which is to echo what my right hon. Friend the Member for Leicester East (Keith Vaz) said. We are going to have a referendum and the question for Labour is whether we reach that point gracefully or reluctantly. We now need to move beyond this debate and set out the terms of how sovereignty can be redrawn between us and Europe. That is my single plea. This is the easy part of the debate where we ask whether we should have a referendum or not. We clearly are going to have one, so we now have some very serious work to do.

I end by echoing what the hon. Member for Richmond Park (Zac Goldsmith) said—I hope he has a large majority; otherwise I will be accused of helping him, too—namely that this is a matter not just of us trusting the British voters, but of the possibility of them trusting us a little bit more in return, and my God, we are in need of that.

Oral Answers to Questions

Karl Turner Excerpts

Tuesday 22nd January 2013 Commons Chamber

[Fiona O'Donnell (East Lothian) (Lab)]

7. What guidance his Department is giving to heads of mission on the steps that should be taken to ensure continuing support for education and health care for women in Afghanistan and Pakistan.

[Karl Turner (Kingston upon Hull East) (Lab)]

13. What guidance is being given to heads of mission by his Department regarding the steps that should be taken to ensure continuing support for education and health care for women in Afghanistan and Pakistan.

[Chris Evans (Islwyn) (Lab/Co-op)]

16. What guidance is being given to heads of mission by his Department regarding the steps that should be taken to ensure continuing support for education and health care for women in Afghanistan and Pakistan.

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[Alistair Burt]

Very closely. Progress in both countries is being handled almost on a mutual basis: many meetings take place at which FCO and DFID officials are present in post together. I have already provided some details relating to Afghanistan, but progress is being made in Pakistan as well. Because 50% of women in Pakistan currently give birth at home and some 12,000 die in childbirth or for related reasons, we have so far contributed to the support of some 17,000 community midwives there. Work of that kind can be done only with the support of the FCO, working with the Pakistan Government, and the good work of DFID and the non-governmental organisations that work with it to provide care on the ground.

[Karl Turner]

What is the Minister’s assessment of the contribution of women’s education to the long-term stability and development of Afghanistan?

[Alistair Burt]

It is utterly crucial. There is no recorded instance of a society in which women have been involved and engaged being in a worse position than before. That involvement and engagement is vital to progress.

We are supporting projects including Afghan Women In Business and the promotion of entrepreneurship for women in Afghanistan. The number of women who are engaged in business remains incredibly small, and the female literacy rate is only about 12%. Our work must involve a combination of involving women in education, helping them to become involved in business, and, of course, continuing to support their political participation.

Oral Answers to Questions

Karl Turner Excerpts

Tuesday 19th June 2012 Commons Chamber

[Nic Dakin (Scunthorpe) (Lab)]

5. What recent discussions he has had with his European counterparts on the eurozone crisis.

[Karl Turner (Kingston upon Hull East) (Lab)]

14. What recent discussions he has had with his European counterparts on the eurozone crisis.

[The Secretary of State for Foreign and Commonwealth Affairs (Mr William Hague)]

My ministerial colleagues and I have regular discussions with our eurozone and European counterparts. It is in the UK’s interests to have a stable eurozone, the countries of which must do all they can to stand behind their currency.

[Mr Hague]

We might be drifting away from foreign policy, Mr Speaker. The fact that the United Kingdom has its safe haven status, with the lowest interest rates in our history, is an important point that the hon. Gentleman ought to remember. When our Prime Minister put his name to the letter ahead of the March European Council, along with 11 other Heads of European Governments, calling for measures to stimulate growth—improving the single market, free trade agreements with other nations and removing barriers to business—it received a strong endorsement from many European nations. Clearly we influence the debate very strongly.

[Karl Turner]

I hear the Foreign Secretary’s response to my hon. Friend, but yesterday the Prime Minister gave what is becoming his all-too-familiar speech to eurozone countries. Does the Foreign Secretary agree that reciting the same old platitudes is a poor excuse for leadership? Is it not time for a plan for jobs and growth?

[Mr Hague]

The Prime Minister is fully entitled to say what he believes should be done, as are many other world leaders at the G20. There is no reason the UK should be unable to give its views about what should happen in the eurozone, given that the United States and many other countries are free to do so. The eurozone economies have an important effect on our economy, and what is happening there is having a chilling effect on our economy, so we are fully entitled to give our views, as well as to show strong leadership in controlling and bringing down the excessive deficits left to us by the Labour party and in having a safe haven status that is the envy of much of the rest of Europe.

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[Alistair Burt]

Yes. I thank my hon. Friend for raising this case. Our consular teams in the Foreign and Commonwealth Office and in Dubai are aware of this case and we have met representatives of the family. It is a distressing and puzzling case and we are giving as much assistance as we can, along with other agencies, to the investigation.

[Karl Turner (Kingston upon Hull East) (Lab)]

T6. Last week, a Conservative Member of this House expressed huge admiration for General Pinochet. Given that General Pinochet sanctioned sadistic torture against innocent men, women and children, will the Foreign Secretary condemn his colleague’s comments?

[Mr Hague]

I am not aware of the particular comments, but the hon. Gentleman can rest assured that the Government support a strong, democratic, free and open future for Chile, and our relations with the Government of Chile are excellent on that basis. Looking to the future, there is no doubt about where we stand.