Sanctions Implementation and Enforcement

Lloyd Hatton Excerpts

Thursday 15th May 2025 Commons Chamber

[Stephen Doughty]

The right hon. Gentleman knows the industry and these measures—of course, he also held senior roles in government that were responsible for these matters—so he will understand that I am not going to go into the technical details of every individual case. However, I can tell him that, for example, His Majesty’s Revenue and Customs has issued six compound settlements since 2022 against UK companies that have breached the Russia trade sanctions, for a total of £1,363,129. Those include a compound settlement in August 2023 for £1 million, so I feel absolutely justified in saying that avoiding sanctions does not pay, and I am committed to ensuring that we have more of these actions in future. Some of them will be public, while others will not be—a range of measures is in place. We are introducing new powers, particularly to find ways of settling cases in which companies have come forward and voluntarily disclosed, but equally so that those that do not do so will face penalties.

[Lloyd Hatton (South Dorset) (Lab)]

Too often, sanctions evasion happens via our British overseas territories, particularly through secretive havens such as the British Virgin Islands, and a lack of public ownership records complicates efforts to find out who is involved in sidestepping our sanctions regime. With that in mind, can the Minister set out how he is working with all of the overseas territories to finally meet their commitments to introduce registers of beneficial ownership, and can he reassure this place that our sanctions are robustly enforced across the entire UK family?

[Stephen Doughty]

My hon. Friend is absolutely right to raise this issue, which I have repeatedly raised with the leaders of the overseas territories and indeed with the Crown dependencies. We have seen robust action on sanctions, both in implementing sanctions and working with our authorities to ensure that we have the biggest enforcement effect. I have mentioned the recent meetings we had at Lancaster House with sanctions enforcement officials, as well as the specific example of BVI. The National Crime Agency has been working with the British Virgin Islands on a range of issues, and that work has been very productive, but my hon. Friend is absolutely right that transparency contributes to effective sanctions. I have repeated my expectation that OTs and CDs should introduce fully accessible public registers of beneficial ownership, but the OTs also agreed at last year’s Joint Ministerial Council to introduce legitimate interest access registers. We have seen real progress from a number of them, although some others are not quite there yet. My hon. Friend can be assured that I am not resting in raising serious concerns about this issue, and I will continue to do so over the weeks ahead.