Offshore Companies: Property

Lord Browne of Ladyton Excerpts

Tuesday 29th March 2022 Lords Chamber

[Lord Ahmad of Wimbledon (Con)]

My Lords, I am surprised that the noble Lord let the speaker of the BVI leave without giving a straight answer to his question. Perhaps he should have been slightly more persuasive in his normal way. That said, I agree with the noble Lord that it is important. Of course, it is the responsibility of Parliaments and Governments to ensure that appropriate access is given. I have already indicated that there is a working, constructive relationship, particularly with those OTs which have financial services at their core. Equally, the commitment that the overseas territories have given, both in terms of response to the sanctions and their commitment to public registers, is something we welcome. We continue to work very practically and pragmatically with them.

[Lord Browne of Ladyton (Lab)]

My Lords, the scale of this challenge is enormous. Transparency International UK has found £250 billion worth of funds diverted by rigged procurement, bribery, embezzlement and unlawful acquisition of state assets from across 79 different countries sheltering in companies registered in the UK’s overseas territories. Why is there a reluctance to deal with this problem? Why has it taken so long—since 2018—to have the Order in Council enacted for this register? Is it because, for example, the British Virgin Islands, with a GDP of $1.027 billion is responsible for $24.3 billion of inward investment into the United Kingdom? Is that the real reason?

[Lord Ahmad of Wimbledon (Con)]

No, my Lords, the real reasons are that there is a practical working relationship with the overseas territories, and that the SAML Act which was brought forward, approved and became not just something we debated but an Act, guaranteed that the overseas territories would respond with public registers. As I have already explained, that is happening. There are existing arrangements in place. There is no reluctance, but it is right that we work constructively with the sectors, and of course there are issues, as the noble Lord points out, about corruption and criminality. It is right that we act, and act accordingly.