Draft Criminal Finances Act 2017 and Economic Crime and Corporate Transparency Act 2023 (Consequential Amendments) Regulations 2024

Matt Vickers Excerpts

Wednesday 13th November 2024 General Committees

[Matt Vickers (Stockton West) (Con)]

It is a pleasure to serve under your chairmanship, Mr Efford. I thank the Minister for his welcome and look forward to him returning to the comfy seats on the Opposition side in the not-too-distant future.

I also thank the Minister for bringing forward the regulations to tackle economic crimes and fraud. It is right that, as a country, we empower our law enforcement agencies with the necessary tools to address these pressing issues. The Economic Crime and Corporate Transparency Act 2023 was introduced in the previous Parliament specifically to confront the challenges of economic crime and corporate transparency. It was a necessary piece of legislation to ensure that we keep our country safe and our economic jurisdictions clean.

The Minister rightly highlighted the need to tighten the regulations to ensure their effectiveness. As I understand it, similar regulations were originally scheduled for discussion prior to the election. It is appropriate that they are adapted to align with the original intentions of the 2023 Act. A key aim of the legislation passed by the previous Government was to simplify powers, so it is appropriate for the current Government to do all they can to facilitate that process.

The Minister highlighted cryptoassets, the use of which in illegal activities has been a worrying development over the last decade. Although it is challenging to ascribe specific figures, the National Crime Agency has suggested that over £1 billion in illicit cash is transferred overseas. Additionally, analysis by Chainalysis found that the total value of cryptocurrency received by illicit addresses globally exceeded £24 billion in 2023. I am therefore pleased that the new powers outlined in the 2023 Act, which are operational in England and Wales, have been exercised in more than 80 cases, as of the end of October, including cases involving the seizure and confiscation of cryptoassets. We must ensure that seizures continue effectively.

I would like to press the Minister for further clarity on a few specific points. Will he outline whether the Government anticipate an increase in the number of custodial sentences as a result of the regulations? Will he clarify how the regulations fit within the Department’s broader approach to cryptocurrencies? Has the Minister made any assessment of the types of cases in which such assets have been seized? Will the Department ensure that its strategy is robust in addressing those cases?

It will be essential to adapt and evolve the UK’s legislative response to economic crime. No matter how ingenious criminals may believe they are, we must always be prepared to thwart their efforts. I hope the regulations will play some small part in advancing that mission.