Corporate Transparency and Economic Crime

Baroness Hodge of Barking Excerpts

Monday 28th February 2022 Commons Chamber

[Kwasi Kwarteng]

I welcome my right hon. Friend’s remarks. I pay tribute to him, and to Members on both sides of the House, for the excellent work that they have done in ensuring that the measures have been introduced in a timely way. I look forward to working with him to ensure that we have a good regime. Let me also point out that we have £63 million in the spending review to deal precisely with the funding of Companies House.

[Dame Margaret Hodge (Barking) (Lab)]

The Secretary of State is sensing some frustration, and I will tell him why. The public register of beneficial ownership of properties that are foreign-owned was promised when David Cameron was Prime Minister in 2015. That had nothing to do with Brexit; it could have been introduced in that year. Then we come to Companies House. I am dismayed that all we are getting is a White Paper. We had an extensive consultation, completed a year ago, which built plenty of consensus around the reforms that were necessary. We do not need a White Paper; we need legislation, because that is what will stop this situation.

I am not sure that the Minister understands the issue of the enablers. There is hardly any ability for any of our enforcement agencies to get at those who not only collude with the process of dirty money coming into Britain, but facilitate it—lawyers, banks, accountants and others. If we do not stop them doing that, dirty money will continue to come in.

My final point to the Secretary of State is about the unexplained wealth orders. We greeted them with great expectations, but they have let us down. I would urge him to put a cost cap on litigation so that when we fail in an unexplained wealth order, the various recipients of dirty money do not get away with £2 million-worth in legal costs, as they did in one case.

[Kwasi Kwarteng]

I am sure that my answer will not satisfy the right hon. Lady, but I am pleased that we are introducing this legislation, and I look forward to working with her and colleagues on both sides of the House in ensuring that it is right. As for the cap on unexplained wealth orders, I think it will be the subject of plenty of discussion imminently, when we introduce the legislation.