Sanctions and Anti-Money Laundering Bill [HL]

Lord Freeman Excerpts

2nd reading (Hansard): House of Lords
Wednesday 1st November 2017 Lords Chamber

[Lord Freeman (Con)]

My Lords, first, I pay tribute to the excellent service on the Front Bench of my noble friend Lady Anelay. Judging by the quality of her contribution this evening, I am sure she will replicate that distinguished service for many years to come.

I support the Bill. Unlike those with much legal background and training, I shall concentrate on some practical matters and principally on money laundering. I find myself in agreement with the noble Baroness, Lady Bowles, about the implications of the Bill—I hope they are positive—in terms of money laundering. I appreciate that the UK has recently transposed the fourth money laundering directive and I hope and trust that the UK will continue to be a member of the international Financial Action Task Force. I would be grateful if the Minister could confirm, either tonight or in due course, that that will be the case.

The power in the Bill enables the United Kingdom, after leaving the EU, to update UK anti-money laundering regimes. The changes to be made to UK legislation will be made under the affirmative procedure. I am delighted by this. Those noble Lords who have sometimes suffered in a more rapid process must welcome the fact that we will debate the regulations and the changes that are due to come under the affirmative procedure rather than the negative procedure. Parliament is better involved in detail if that is the case.

I understand that the Government’s review of the UK’s anti-money laundering legislation is planned to conclude in December 2018. I am not quarrelling with that timetable, although I am a little disappointed, but it is vital that the target is met. I am sure the Minister, who has the same degree of attention to detail that he had when serving with other ministerial responsibilities, will comment on my plea that we conclude that legislation properly.

One area it is vital to cover is the need for a mandatory register of house owners located abroad who are currently able to buy UK property anonymously. I have lived in London for most of my life, although I did not represent a London consistency in another place, and I am acutely conscious that there is a good deal of concern not just in central London—in Kensington and Chelsea and Mayfair—but throughout Greater London about the anonymous purchase of property and the implication—implication only; I make no charge—of improper sources of funds to buy the properties. The Government have promised to introduce legislation by April 2018 to bring transparency to the housing market so that overseas companies must publicly declare their beneficial ownership. That is a very important target to meet on legislation and government action. Transparency International has apparently identified more than £4 billion-worth of London property bought with wealth considered suspicious—these are not my statistics, and I am grateful to that organisation for briefing me—and 40,000 London properties that are owned anonymously.

Action is required. Companies House, I am sad to say, has far too few employees dealing with registration. I gather it is a handful—or less than a single handful—and therefore staffing should be increased dramatically. We need a register of beneficial owners of UK property, which should be open not only to your Lordships’ House but to the general public.

Sanctions and Anti-Money Laundering Bill [HL]

Lord Freeman Excerpts

Committee: 3rd sitting (Hansard): House of Lords
Wednesday 6th December 2017 Lords Chamber

Some researchers have information on who owns what in London, and what their previous jobs were. I have a copy of the register that shows that apartments 138A and 138B in Whitehall Court were sold for £11,400,000 to Sova Real Estate, which is incorporated in Russia. I also have a copy of the Russian register of interests which shows that the beneficial owner of that company is a former Minister. There is no way that his salary could have provided the money to buy those flats; that is impossible. They are above the Farmers Club, if anyone wants to know where I am talking about. It is absolutely astonishing that bags of information are available on this issue but nothing seems to happen. The one thing that would shake things up would be if this amendment were approved. We would then find out what is happening and end the damage building up in our country. That is why I support the amendment.

[Lord Freeman (Con)]

My Lords, I very much support the comments of my noble friend Lord Hodgson. As the Minister knows, at Second Reading I very much supported the sentiments which have been expressed so clearly by my noble friend. Indeed, I believe that the proposed new clause in this amendment is very much in line with government policy. If there is a meeting, I hope that I might be included in it along with other colleagues.

[Baroness Kramer]

My Lords, everything that can be said has been said brilliantly. I hope that we will get an update from the Government which convinces us that this issue is back on track.