Sanctions

Lord Hain Excerpts

Thursday 23rd January 2020 Lords Chamber

Asked by

[Lord Hain]

To ask Her Majesty’s Government what proposals they have for legislation providing similar powers to United States government sanctions.

[The Minister of State, Foreign and Commonwealth Office (Lord Ahmad of Wimbledon) (Con)]

My Lords, the Sanctions and Anti-Money Laundering Act 2018 provides the legal basis for the United Kingdom to impose autonomous sanctions. We have already laid some secondary legislation to transfer existing EU regimes into UK law at the end of the implementation period. One area where we will use the sanctions Act is to establish a UK autonomous global human rights Magnitsky-style sanctions regime once we leave the European Union. The sanctions regime will address serious human rights violations or abuses wherever they occur.

[Lord Hain (Lab)]

My Lords, I welcome the Minister’s statement; it is considerable progress on the exchange we had late last year. But it is important that the Government deter international crime by establishing sanctions similar to those imposed by the USA on the Gupta brothers of South Africa for their part in former President Zuma’s corrupt regime, which looted hundreds of millions of pounds from South African taxpayers. The fact is that some of the world’s worst criminals and human rights abusers have significant assets in the UK, and it is important that this process is accelerated and given real teeth, as in the USA, enabling them to be targeted and denied the right to travel and to have their UK-based assets frozen. Otherwise, London will continue to be a centre for money laundering for serious criminals such as the Gupta brothers.

[Lord Ahmad of Wimbledon]

My Lords, we continue to have helpful discussions with the noble Lord in this respect. My colleague the Minister for Africa has also written to him. On his final point on money laundering, I draw the noble Lord’s attention to the fact that in 2018 FATF undertook a review of over 60 regimes across the world, in which the UK ranked the highest, showing that we have a robust money laundering regime in place. That said, there are always improvements to be made. As far as the sanctions regime itself is concerned, as I have said before from the Dispatch Box, we are currently considering its overall scope. The noble Lord makes some helpful suggestions. On his point about other regimes around the world, as I have always said, the imposition of sanctions works best when there is connectivity across like-minded partners.