Financial Services

Peter Grant Excerpts

Consideration of Lords amendments
Monday 26th April 2021 Commons Chamber

[Peter Grant (Glenrothes) (SNP) [V]]

I endorse a lot of the comments made by the Labour Front-Bench spokesperson, the right hon. Member for Wolverhampton South East (Mr McFadden); I found myself agreeing with a great deal of what he was saying.

The Scottish National party welcomes the measures in the regulations, but I certainly cannot share the Minister’s glowing endorsement of the Government’s record on money laundering or, indeed, the even more glowing self-praise that we heard from the Foreign Secretary earlier—or yesterday, as it is now. This is a Government who legislate against money laundering, or in favour of transparency in the world of big business only when the eruption of yet another scandal makes it politically too hot for them to continue to pretend that everything is fine. The Government are packed with hard-line Brexiteers—supporters of Brexit, the timing of which we now know was critical to those who had reason to want to keep British-regulated businesses clear of a tightening of European Union regulation.

The Government showed no hint of embarrassment when the first person to be hit with one of their much-trumpeted unexplained wealth orders turned out to be an east European multimillionaire whose immigration and UK citizenship applications had been fast-tracked purely because of the amount of money they owned—money the source of which was as unexplained and dodgy when they were allowed into the country as it was when the National Crime Agency finally caught up with them. Of course, even now the Government are mired in scandal over who really put up the cash for the spiffing up of the Prime Minister’s flat. Over the weekend, there were persistent claims, which went noticeably unanswered, that the money might originally have come from an unauthorised donor and that, in effect, the money might have been laundered.

There is no indication of what, if anything, the Government are doing to address the fact that seven of the 21 countries on the high-risk list are members of the Commonwealth, and another is trying to join. How can anyone have confidence in the super influence that global Britain is supposed to have if it cannot even fix corruption in its own Commonwealth? It gets worse, because another name on that list is that of the Cayman Islands, a British overseas territory. The Government have at their disposal the constitutional tools to put an end to the Cayman Islands’ grim reputation, but they choose not to use them. In fact, recent events have suggested that the Government would rather use their muscle to prevent the Scottish Government from giving children the full protection of a United Nations convention than use it to free one of their few remaining colonies from dodgy business practices that—who knows?—may well have been learned from former colonial masters in the first place.

There may well be legitimate and honourable reasons why a company that never does any business in the Cayman Islands would choose to have its brass nameplate on a door there, rather than in the United Kingdom, North America or wherever the business is genuinely based, but we are talking about 100,000 company registrations in a place the population of which is lower than that of my constituency. As well as answering the questions from the right hon. Member for Wolverhampton South East, will the Minister tell us what he thinks attracts so many British companies to create wholly artificial structures to link them to Cayman Islands? If it is not tax dodging or money laundering, or to evade legitimate laws on business ethics and transparency, what on earth does he think they do it for? If he cannot think of a reason, perhaps he should ask some of his colleagues why they choose to register companies there. If you have the Companies House register and the Register of Members’ Financial Interests open side by side on a computer screen, it does not take very many clicks of a mouse to find some very senior Tories who do exactly that.

As well as welcoming the regulations, the SNP will continue to keep up the pressure on the UK Government to bring in the further measures needed to clean up the entire financial services sector. The SNP can already claim a number of significant successes in forcing the Government to match their rhetoric with action and, for as long as there are MPs from Scotland in this place, we will continue to keep up that pressure.