Economic Crime and Corporate Transparency Bill

Debate between Layla Moran and Jonathan Djanogly

Report stage
Wednesday 25th January 2023 Commons Chamber

[Layla Moran]

I thank the hon. Lady for her point, which is well made. The thing is that the Government were curious, and they did this review, which is sitting there. That is clear—the one thing that the written statement confirmed was that a review had been done and recommendations had come from it, but all we got was a summary of the recommendations. What I take from that is that they were curious and they found out, but now they do not want to tell us. What on earth happened? It is not a good look.

To move on from golden visas, we desperately need to see more action in a number of other areas to ensure that we properly tackle economic crime, particularly by kleptocrats. It is right that we focus on Russians, but it is worth saying that the Bill will apply to many other flavours of kleptocrats and bad people. As other hon. Members have said, this could be our last chance for many years to get this right, so we should consider how else it might apply. Last year, for example, Hong Kong Watch highlighted concerns about the dirty money that Hong Kong officials had gained through corruption and that has now been spent by the families of officials in the UK, including on property. I raised those concerns at the time and I will continue to press Ministers on them.

I tabled new clause 30, about Iran, to show how important it is to focus not on a single country, but anywhere there are human rights abuses. Anoosheh Ashoori made the point that

“there are a large number of children and relatives of the regime that, like the Russian oligarchs, like living the high life here and have assets here.”

Why are we not pursuing them? The new clause asks the Government to use existing legislation to do an audit and report back to Parliament. We should apply the Bill to as many places as it can be effective.

All that takes resourcing—a familiar refrain in the House—which is addressed by new clause 31. Frankly, resourcing is a lacuna in this Bill and its predecessor. I was encouraged by the number of amendments on establishing an economic crime fighting fund, which shows that it is clearly the shared will of hon. Members on both sides of the House that we put the resourcing and money behind this legislation to ensure that it is done properly. The Liberal Democrats wholeheartedly share that commitment. I say to the Minister that that money would not be frittered away; it would be an investment, because if we fund the agencies properly, they will start to bring the money back in. We know the exorbitant amount that we think we are losing to economic crime, so any investment in getting some of that money back would surely be good.

In conclusion, I urge Ministers to take note of the willingness of hon. Members on both sides of the House to act, and to take heart from it. There is much more to be done. I hope that the Bill is the next chapter, but not the last, in the House’s fight against economic crime in this country. I sincerely hope that Ministers will continue to work with us in our common aim of bringing about transparency and light to tackle this once and for all, so that we are never again left in this embarrassing position.

[Mr Djanogly]

I rise to speak to new clause 23, in my name and those of the right hon. Member for Barking (Dame Margaret Hodge) and 17 other hon. Members on both sides of the House, for whose support I am grateful. This comprehensive Bill is significant in its scope and its intention to counter fraud, which is wholly welcome, but new clause 23 speaks to its lack of focus on the proceeds of economic crime, which are the proceeds resulting from acts committed in the UK and overseas.

Such proceeds have circulated in the national economy, largely unimpeded, for too long, and a host of existing limitations and issues, such as the lack of proper financing for related law enforcement bodies, which has been much discussed over the last two days, have a compounding negative effect. Unfortunately, those limitations are all too frequently at the expense of and to the detriment of hard-working and honest taxpayers in all our constituencies—not least mine—and those who often stand to benefit are the criminals and those sanctioned for reasons related to foreign affairs. Tackling that issue is the primary motivation behind the new clause.

More broadly, like-minded countries are increasingly focusing on this area, including our fellow parliamentarians in Canada. In June last year, they made technical yet significant changes to their economic sanctions legislation, including the Sergei Magnitsky law regime. Effectively, those changes allow existing sanctions for freezing assets to be converted into orders for the seizure of those assets. Similar measures are being considered by the European Commission, in other European capitals such as Tallinn, and in the United States. Unless our regulatory measures vis-à-vis the proceeds of economic crime are reviewed and strengthened, the UK risks falling behind, which I believe would be both morally and politically unpalatable.