Sanctions and Anti-Money Laundering Bill [Lords]

Debate between Liam Byrne and Ben Bradshaw

3rd reading: House of Commons & Report stage: House of Commons
Tuesday 1st May 2018 Commons Chamber

[Liam Byrne]

That is absolutely what I am proposing, and my reason is this country’s national security. Let me give the hon. and learned Gentleman a simple example. Back in November 2017, my right hon. Friend the Member for Exeter (Mr Bradshaw) raised the issue of some significant agents of influence in this country: the Chandler brothers, who happen to run an important think-tank that has enjoyed unrivalled access to Ministers during one of this country’s most important national debates. The risk—I put it no stronger than that—that we are running is that that support is financed from sources that derive from the Russian Federation, and it may therefore be part of the panoply of active measures that have been drawn together since the re-election of President Putin in 2012. He has made no secret of that. He set it out in a state of the union address to the Russian people in 2013. Some call it the Gerasimov doctrine, but, whatever it is called, we saw the sharp edge of that sword on the streets of Salisbury just a few weeks ago.

I want to give the House an example of how this influence can unfold in an innocent country like ours that has perhaps been a little inattentive to some of the risks that have been growing over the past few years. As the hon. Member for Isle of Man has mentioned—[Interruption.] As the hon. Member for Isle of Wight (Mr Seely) has mentioned—he would have a different kind of specialism if he were the hon. Member for Isle of Man—the individuals to whom he referred are men of influence who help to finance an important think-tank.

I note with interest that the think-tank is financed by the Legatum Institute, which is registered in the Cayman Islands—registration number FC028686, for those who take an interest in these things—but why should these brothers be of such interest to us? Well, we know that Christopher Chandler and his chief executive, Mark Stoleson, have both taken Maltese passports through the passport-selling operation Henley & Partners. They both publicly accept that they hold accounts at the Iranian-Maltese bank Pilatus, the assets of which were frozen and its chairman arrested at the behest of the FBI in March. Both Pilatus and Henley & Partners were the subject of investigations by the Maltese journalist Daphne Caruana Galizia, who was assassinated late last year.

The hon. Member for Isle of Wight has referred to more. Richard Chandler’s file contains the additional statement:

“Richard Chandler and his brother Christopher play an important role in the capital of the companies Lukoil and Gazprom (linked to longstanding…Russian figures who could be linked to organised crime).”

Furthermore, they maintain relations with an individual, a Chechen mafia figure, who was “expelled from Monaco”. They are connected with money laundering. These allegations are made in the file.

[Mr Bradshaw]

Is my right hon. Friend also aware of the relationship between Henley & Partners and the social media data companies that have been allegedly involved in helping with political campaigns, including that of the recently elected Government in Malta?

[Liam Byrne]

These are very real and very serious allegations, yet when I tabled questions to the Treasury about whether it was exploring the Maltese golden visa route, and the access to the European banking system and the Schengen area that it provides, it said no such conversations were under way.

The point is that I would like to know more about these brothers and whether they are beneficiaries of the money knocking around the overseas territories that derives from bad sources. I want to know whether that money is derived from Russian sources, and I want to know who the business partners were.

Global Witness has done this House an incredible service by highlighting how £68 billion of Russian money is now sloshing around the overseas territories. Given the national security situation that now confronts us, and given the update to the national security strategy that has just gone through, how can we be relaxed about our ignorance of where that £68 billion of Russian money, now buried safely and securely in the overseas territories and Crown dependencies, came from?

If there is innocence, it should be proved. It should be clear. That is why the disinfectant of sunlight is so important. What we cannot have is agents of influence peddling policies and proposals backed by dirty money from one of our country’s enemies. We cannot have that, and we in this House have a responsibility to ensure that we do not run that risk.

For far too long, good and bad money has been allowed to mix together in our overseas territories and Crown dependencies. There is good money there, but we need to be honest with ourselves that some of that money comes into too close contact with cash generated by economies of evil. It is our responsibility to take steps to shut down that regime, which is why new clause 6 and the arguments of my hon. Friend the shadow Minister are so important. I hope the Minister will listen.

Intelligence and Security Committee of Parliament

Debate between Liam Byrne and Ben Bradshaw

Thursday 16th November 2017 Commons Chamber

[Mr Bradshaw]

I do beg my hon. Friend’s pardon.

I hope that one of the Committee’s early inquiries will be into Russian interference in the UK. As you know, Madam Deputy Speaker, I have been raising questions about this for the past year, during which the evidence of Russian interference in the American presidential election became credible and compelling. Until recently, the UK Government gave every impression of not wanting to talk about it, but mounting evidence on both sides of the Atlantic of covert Russian propaganda and social media activity, and the role of dark money in our democracy, makes it imperative that the Intelligence and Security Committee looks at this as a matter of urgency. The Digital, Culture, Media and Sport Committee has already launched an inquiry and the Electoral Commission is conducting investigations into Russian-backed interference in the referendum, including with regard to social media and the funding of the pro-Brexit campaign and its main financial backer, Arron Banks.

The American investigation into alleged collusion between the Kremlin and the Trump campaign, led by Justice Department special counsel Robert Mueller, has also now reached Britain. The FBI has named Nigel Farage, the former UKIP leader, as a person of interest, and Mueller has indicted a former Trump campaign operative, George Papadopoulos, who had meetings in London with a UK-based academic, Josef Mifsud, to discuss the latter obtaining dirt on Hillary Clinton from the Kremlin. We know that Mr Papadopoulos has had access to British Ministers, and that Professor Mifsud has met the Foreign Secretary, although that was at first denied.

While it is imperative that the Government and their agencies give the fullest help and co-operation to the Culture Committee, the Electoral Commission and the Mueller investigations—although I know this is not his area of responsibility, I would be grateful if the Minister could assure the House that that will be the case, especially as I have been told that the Mueller team was in London recently and was not happy with the co-operation it was receiving from the UK authorities—it is the Intelligence and Security Committee that has much freer and direct access to our intelligence and security services and can question them directly. That is why its reconstitution is so important.

Despite the mounting evidence of recent months, the Foreign Secretary was still insisting last week that he had seen no evidence of Russian interference, but on Monday the Prime Minister said, or at least implied, something very different in her Mansion House speech. She excoriated the Putin regime for hacking, interfering in elections, and spreading fake news to sow discord in western democracies and threaten our international order.

It would be helpful to the Houses of Parliament and the country as a whole if the Government would end this confusion now. Is Britain among the countries that the Prime Minister had in mind when she made her speech? Indeed, it would be rather odd, given the uniquely disruptive impact of the Brexit vote and Putin’s well publicised desire for it, if Britain alone were immune from the Kremlin’s intentions. If the Government will not clear this up, I hope the ISC will. I hope that the ISC will also use its good offices to ensure that the Government and all their agencies give every assistance necessary to the other UK bodies investigating these matters and to Robert Mueller’s team.

Additionally, I urge the ISC to include the issue of dark money and the role of think-tanks in any of its deliberations on this matter. We know that more than £400,000 was donated during the EU referendum to the Democratic Unionist party by the Constitutional Research Council. The CRC has also given money to hard Brexit-supporting MPs, including the Under-Secretary of State for Exiting the European Union, the hon. Member for Wycombe (Mr Baker). It was reported last week that the fine the Electoral Commission imposed as a result of the DUP donation resulted from a failure to disclose its source. That is not acceptable.

[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

My right hon. Friend is making a brilliant and forensic speech, and he is to be commended by us all for pursuing this matter over the past year. Does he agree that a priority for the ISC should be to get to the bottom of whether foreign money was donated to the election campaigns and to the referendum campaign? A gap in the law means that the Electoral Commission is not empowered to investigate foreign actors and foreign money, and their influence on our democracy and this House.

[Mr Bradshaw]

I completely agree with my right hon. Friend. Our legal framework is completely outdated for meeting the challenges that we face.

There is a further issue that I hope the Government will address. They have promised to close the loophole in Northern Ireland, where political donations remain secret for historical reasons, but that is completely unacceptable. It is quite clear that Northern Ireland has recently been used as a channel for such donations. The Government, to their credit, have said that they will change the law. Every single party in Northern Ireland— except the DUP, I think—believes that such a change should be retrospective. That would allow us to go back to the time of the referendum so that we would know where the money came from, and we could have full confidence in the integrity of our political and democratic process.

I also urge the ISC to look at the Legatum Institute, its relationship with the Government, and the background of its founder and main funder, Christopher Chandler. It should also consider the activities and funding of political organisations such as Conservative Friends of Russia, now renamed as the Westminster Russia Forum.

I come now to my final and perhaps most important point: the relationship between our intelligence and security services and those of our closest ally, America; and the relationship of each with their respective Government. President Trump is at war with his intelligence community. He has made it abundantly clear that he would sooner believe Putin than his own intelligence and security professionals. That is shocking, but it would be even more worrying for us if that breakdown in relations were mirrored here and had a negative impact on the vital work of our agencies and the extent of their co-operation with their US counterparts.

When the news website BuzzFeed ran a series of articles recently about unexplained Russia-related deaths in Britain, its head of investigations, Heidi Blake, was inundated with American intelligence sources complaining that they did not think their British counterparts were taking these incidents seriously. If that is true, it is extremely worrying.

Until recently, British Ministers have gone out of their way to avoid talking about Russian interference. They might have been worried about doing anything that might cast doubt on the legitimacy of the EU referendum result or embarrass President Trump, from whom they hope to get a trade deal to save them from the Brexit disaster.

I hope the ISC, now that it will finally be reconstituted, will be able to reassure itself and this Parliament that our intelligence and security services continue to act freely within the law, unhampered by any narrow political concerns of Ministers, and that their vital co-operation with their US counterparts has not been affected by the breakdown between the latter and their President. This issue goes to the heart of the security and integrity of our democracy and political system, and I wish the members of the Committee well in their important work ahead.