Economic Crime (Transparency and Enforcement) Bill

Sammy Wilson Excerpts

2nd reading
Monday 7th March 2022 Commons Chamber

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

We all know that a week can be a long time in politics but, amazingly, it is just 40 days since the resignation of Lord Agnew, who cited, among other things, that he thought the Government would not be willing to bring forward an economic crime Bill this year as his reason for walking out. That statement was of huge concern to many of us. The urgent question that we asked on that matter showed the coalition that exists on both sides of the House which wants real action to be taken on those issues.

Having listened to the Second Reading debate today, I think it is clear that the coalition has assembled again. It should not have taken Ukraine for the Bill to happen, but at least we have the first stage of the legislation. I counted 19 contributions from Back Benchers, all of whom agreed that the legislation should proceed. The Opposition also welcome the Bill and what it contains. There are things that we want to strengthen but we are clear that we will work with the Government to secure its passage today.

As was evident from the beginning of the debate, however, the Bill is not the totality of what is required. Other reforms, such as those to Companies House and to Scottish limited partnerships, must follow. The economic crime Bill promised in the next Queen’s Speech must be presented in the early part of the next Session and must make those reforms. I was in conversation with the Minister for much of last week. I welcome the assurances that have been given and that the Home Secretary gave from the Dispatch Box when she opened the debate.

The Bill covers three main areas: the register of overseas entities, the changes to unexplained wealth orders and the changes to the sanctions regime. I will cover all three. The main part of the Bill deals with the register of overseas entities, on which many hon. Members understandably focused. I very much agree with the hon. Member for Amber Valley (Nigel Mills) that that should be considered a mainstream part of a healthy transparent economy, and that it is not economic warfare to expect that level of transparency—to tell us for the first time who actually owns property in the UK and to make that information publicly available. I have long believed that transparency in this area is essential. Football clubs and luxury yachts get attention because they are visible. What I want to know is who owns the property in plain sight all around us, not just because of oligarchs and their position in the Putin regime, but because of the money launderers and the tax evaders. We have needed transparency in this area for years.

[Sammy Wilson (East Antrim) (DUP)]

Does the hon. Member accept that it is one thing to have a register and insist that people fill in the register and fill it in honestly, but it is another thing to ensure that that register is properly checked? Without the resources, skills and acumen to do that, this could become just another piece of legislation that people can bypass.

[Jonathan Reynolds]

I understand the right hon. Member’s scepticism, and he is of course right to acknowledge, as we have heard many times in this debate, that any measures are only as good as the enforcement mechanisms that exist and the resources behind them. What is significant about a register of property is that, if we do it properly, we can essentially prevent the sale of a property, because we can refuse to register the new ownership unless the measures have been followed. However, his argument about the wider reform required, certainly in relation to Companies House, is absolutely well made, and that is why the second piece of this legislation—the second Bill—is so essential.