Economic Crime (Transparency and Enforcement) Bill

Debate between Stewart Hosie and Alison Thewliss

2nd reading
Monday 7th March 2022 Commons Chamber

[Alison Thewliss (Glasgow Central) (SNP)]

SNP Members are delighted to see this well-overdue Bill. We have called for action on these issues many times in this Chamber, in Bill Committees, in Select Committees and in Westminster Hall, yet no action has been taken until today. The measures within the Bill are far from the full package of measures that we need to tackle economic crime and we look forward to hearing the further measures that will come forward soon.

Tom Keatinge of RUSI has said:

“War has not made this money dirty—it has been here, corroding society and undermining the country’s institutions, for decades.”

The failings that we hope the Bill will address have long been identified, but have been ignored through incompetence, disinterest or worse. That goes to the heart of why the Bill is urgent. The money has been sloshing around in the UK and people have benefited from it, but they are not the ones from whom it was stolen. We need to take further action to ensure that we address that.

[Stewart Hosie]

My hon. Friend is absolutely right about where the money was stolen from, and many of the kleptocrats the Home Secretary mentioned made their money by looting Russia after Yeltsin’s privatisations. Does she agree with me that no matter how many times that cash has been through the laundromat, it is still stolen and is still unexplained wealth, and does she share my concern that the use of unexplained wealth orders will never actually get to the root of where some of that grubby stolen money came from?

[Alison Thewliss]

My right hon. Friend is absolutely correct to point that out. This money has been around the world many times and we may never ever find out where it has come from, but we could take further action to stop it coming through bank accounts in this country, helped by lawyers and accountants in this country, and the Bill does not go far enough to deal with the people who are facilitating this economic crime.

On the register of overseas entities, Members will know that I sat on the Joint Committee with the Lords on the draft Registration of Overseas Entities Bill, because I have mentioned it several times before. I cannot understand why it took so long before we had this legislation coming before us today—and in such haste, I should say. Introducing the registration of overseas entities is intended to shed light on the individuals behind overseas companies that control property in the UK, and that is welcome, but again it is too late. The proposals were discussed in detail in that scrutiny Committee, and I still do not understand—I would like some kind of explanation from the Minister, if he would stop chatting—why the Government twiddled their thumbs for four years instead of getting on with implementing such legislation.

I should note that the Scottish Government have moved on this. The register of persons holding a controlled interest in land in Scotland will come into effect and start operating, by taking names on the register, on 1 April. I seek some information from Ministers about what exactly will be the interaction between this register of property in Scotland, which includes overseas entities, and the provisions they are trying to pass today. It has been remarked by a number of organisations that the Scottish register will actually have transparency at its heart and has better transparency than what Ministers are proposing with their register. I would ask that they go to that higher level, rather than ask Scotland to level down on what we are putting on the register of persons holding a controlled interest in land.

Transparency International has estimated that £6.7 billion of questionable funds has been invested in UK property since 2016, of which at least £1.5 billion-worth has been bought by Russians accused of corruption or links to the Kremlin. When we take into account the secret nature of these transactions and how hard it is to get the actual information, the real figure is likely to be much higher.

The Bill as it stands will give the owners of about 95,000 foreign-owned properties six months to reveal their identities. I am glad that the Government have cut that back from the original 18 months they proposed in the draft Bill, but as things stand six months gives people an awful long time to move their money, down what Oliver Bullough calls the “Moneyland tunnel”, to hide those assets and to spirit them away to where they cannot be seen and cannot be found. Such secret jurisdictions will be used by the people who want to do this.

I would like to know from the Minister whether this register will be to the same standards as the Companies House register just now, because the Companies House register is basically full of guff. I have said this many times, but someone can register a company to “Anytown, Anyplace”. I could register one in the Minister’s name if I wanted to, and if I did not give any indication that I had done that, I would get away with it scot-free. The Minister really needs to tell the House what the standards of registration for these companies will be.

Our new clause 4 suggests that Companies House should be an anti-money laundering body, and it should use the Government’s Verify scheme to make sure that a person is a real person when they register a company at Companies House. I want to know what this register of overseas entities is going to look like and how we can make sure that the data put in will be maintained.

Countering Russian Aggression and Tackling Illicit Finance

Debate between Stewart Hosie and Alison Thewliss

Wednesday 23rd February 2022 Commons Chamber

[Alison Thewliss]

I absolutely agree with the hon. Lady. The evidence is so clear but the action is non-existent. It just is not being done.

[Stewart Hosie]

On the issue of golden visas, prior to the tiered scheme there was the old UK investor visa, which was introduced in 1994. It ran from the end of the Major years through Blair, Brown, Cameron and all the Prime Ministers since, and now the tier 1 visa scheme has been done away with. Is my hon. Friend as frustrated as I am, given that the issue of dirty Russian money is not new, that the action is always too late and never quite enough?

[Alison Thewliss]

My right hon. Friend is absolutely correct. The Government are several steps behind those who wish to bend the rules and wash their money through the City of London.

This morning, in response to questioning about a photo taken with Lubov Chernukhin, the wife of Putin’s former Finance Minister, the Foreign Secretary said:

“I think we’ve got to be very careful to distinguish between those who are supporters of the regime, those who are propping up Vladimir Putin and those people who may have moved from Russia years ago and who are part of the British political system.”

I would gently suggest to the Government that when those oligarchs and good pals of President Putin are seen by the British Foreign Secretary as being “part of the British political system”, it really does illustrate the scale of difficulty that the Conservative party has got itself into.