Money Laundering

Lord Tunnicliffe Excerpts

Monday 19th March 2018 Lords Chamber

[Lord Tunnicliffe (Lab)]

My Lords, I thank the Minister for repeating the Answer to the Question. According to the Daily Telegraph, official figures suggest that £90 billion in crime proceeds is laundered through the UK each year. The UK has for many years been seen as a desirable place to hide suspicious wealth. Can the Minister explain why the Government have done relatively little to discourage this activity thus far? Does she agree that the current laws under which owners of overseas companies can buy UK property while hiding their identities are ripe for abuse? They have not only led to an influx to the UK of suspicious wealth, but further exacerbated the crisis in the housing market. Can she please explain why the Conservatives blocked the Labour Party’s amendment in Committee on the Sanctions and Anti-Money Laundering Bill, calling for the introduction of a Magnitsky clause? When will the Government take more effective action to tackle this problem?

[Baroness Williams of Trafford]

My Lords, I can agree with the noble Lord on one thing: the impact of money laundering in the UK. However, in 2016, 1,435 people were convicted of money laundering in England and Wales. The Government established the joint money-laundering intelligence task force in 2015 to tackle the issue, and between May 2016 and March 2017 it contributed to more than 1,000 bank-led investigations into suspect customers, the closure of more than 450 suspicious bank accounts and the freezing of £7 million in suspected criminal funds.

The noble Lord talked about Labour putting forward the Magnitsky amendment. I certainly remember that, under the Criminal Finances Bill, it was the noble Baroness, Lady Stern, who put forward the Magnitsky amendment in this House and Labour did very little to tackle serious crime and corruption in this country, so I do not accept the charge he makes that we have done nothing to address this issue.