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.

Oral Answers to Questions

Lloyd Hatton Excerpts

Tuesday 25th February 2025 Commons Chamber

[Anneliese Dodds]

The hon. Gentleman is right to raise the importance of funding for global health. Of course, this is not just important for those directly impacted; it is important for us here in our country, because we know that diseases do not respect borders. I set out a few moments ago the fact that the Prime Minister is committed to that Global Fund replenishment, and rightly so.

[Lloyd Hatton (South Dorset) (Lab)]

3. What assessment he has made of the effectiveness of steps taken by the British Virgin Islands to tackle illicit finance.

[The Secretary of State for Foreign, Commonwealth and Development Affairs (Mr David Lammy)]

The overseas territories, including the British Virgin Islands, work to uphold international standards on tax transparency and illicit finance and enforce UK sanctions. The overseas territories agreed to implement corporate registers that are accessible at least to those with legitimate interest by June 2025. We are aware of BVI’s public consultation on its register and are working with it to improve its proposal.

[Lloyd Hatton]

The BVI will soon close the consultation on its proposal to grant only limited access to a register of beneficial ownership. That proposal means that it will be virtually impossible for even a select few to trace those using the BVI as a place to secretly stash their cash, and this comes some five years after the first deadline to set up a register was missed. I know that the Secretary of State agrees that sunlight is the best disinfectant when it comes to combating illicit finance, so what steps is he taking to ensure that the BVI establishes a genuine and fully transparent register of beneficial ownership?

[Mr Lammy]

The BVI committed at the Joint Ministerial Council to improving access to its corporate register by June. I met BVI representatives just after that time at the end of last year, and my hon. Friend the Minister of State will meet the BVI again in the coming weeks. It is important that that public consultation on the proposed register will close this Friday, and we are working with the BVI to improve its proposal.

Oral Answers to Questions

Lloyd Hatton Excerpts

Tuesday 30th July 2024 Commons Chamber

[Lloyd Hatton (South Dorset) (Lab)]

T1. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Foreign, Commonwealth and Development Affairs (Mr David Lammy)]

The Government are reconnecting Britain with the world in European capitals, in NATO and at Blenheim, and I have been resetting relations with Europe and reinforcing support for Ukraine. I have also deepened partnerships with the global south to tackle the climate crisis and unlock economic growth, and I am taking a balanced approach on the middle east, calling for an immediate ceasefire, the release of all hostages and more aid into Gaza.

[Lloyd Hatton]

A builder living on Portland, a B&B owner in Weymouth and a shopkeeper on Swanage high street all pay their fair share of tax, yet some individuals take advantage of offshore tax havens such as the British Virgin Islands to avoid paying their fair share. My constituents play by the rules; we ought to know a bit more about those who choose not to. Can the Secretary of State set out what steps his Department is taking to throw open the books in British tax havens and implement public registers of beneficial ownership?

[Mr Lammy]

I raised this issue in opposition—I think it was the subject of the last speech I gave before the election—and it is an issue that I intend to take up with full vigour. We were concerned that parts of the last Government were turning a blind eye to these issues. I hope to come forward with further proposals in the coming weeks.