Criminal Finances Bill

Tom Brake Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Tuesday 21st February 2017 Commons Chamber

[Mr Wallace]

I am grateful to my hon. Friend for that point. I will get to that later in my speech, but we have to recognise this difference between the United States and the UK: here, most of our sanctions regimes are under the European Union umbrella. Of course, there will be time to discuss those sanctions, and the United Kingdom’s post-Brexit arrangements, at a later date. When it comes to sanctions, we have slightly different dispersals of authority and power from the United States, which often can, and does, act entirely unilaterally in this area; we should point that out.

One problem with new clause 1 is that we think it would be non-compliant with our domestic human rights law, because it contains no derogations. It would freeze all the assets of a designated individual, so they would not have any funds for living expenses or medical treatment, or to pay for legal representation. The reversal of the burden of proof, so that it would be assumed that all assets owned by designated individuals were the proceeds of their unlawful conduct, would also be an unprecedented step. That is incongruous with the existing civil recovery regime and could be judged by the courts to be disproportionate.

However, we recognise the strength of feeling on this matter, and understand the deterrent effect that such an amendment would have on those who seek to profit from the gross abuse or violation of human rights overseas.

[Tom Brake (Carshalton and Wallington) (LD)]

The Minister is clearly very well informed on this issue, and I know that he has had meetings on the subject. If assets connected to the case were identified in the UK—I know that there is a dispute with Bill Browder, who believes that there are such assets here—is the Minister confident that existing legislation or his new clause 7 would enable them to be frozen?

[Mr Wallace]

I am grateful to the right hon. Gentleman for his point. I have to respect the boundaries of our law enforcement agencies. As a Minister, I cannot direct them to take action; they have an operational freedom and independence that we value greatly in this country. They have said to me that should actionable evidence be presented to them, they would be free to follow that up and enforce the law. Speaking as the Minister, where actionable evidence of gross human rights abuses or other criminal offences is presented, of course we would like to see action taken. This is not about trying to shelter people who have been involved in those offences; it is about trying to make sure that the appropriate action is taken when the correct evidence is presented. I absolutely concur with the right hon. Gentleman’s point: it is important to understand that we need to act on the evidence. If there is evidence, we could take action, even without this legislation. I certainly urge our law enforcement agencies to take action to make sure that people are held to account for the atrocious murder in Russia of Mr Magnitsky.

We have tried to come some way towards meeting many of the concerns of hon. Members by tabling new clause 7 and the consequential amendments 58 and 59. They would widen the definition of “unlawful conduct” in part 5 of the Proceeds of Crime Act 2002 to include torture or

“the cruel, inhuman or degrading treatment”

of those exposing corruption, or obtaining, exercising, defending or promoting human rights, including in cases where that conduct was not an offence in the jurisdiction in which it took place. That would allow any assets held in the UK that were deemed to be the proceeds of such activity to be recovered under the provisions in part 5.

--- Later in debate ---

New clause 7, along with other new clauses and amendments, should make a difference, so I am pleased to support the Government. I end by again congratulating my hon. Friend the Member for Esher and Walton on seeing this through.

[Tom Brake]

I thank the hon. Member for Esher and Walton (Mr Raab) for putting together the proposal in new clause 1 and the Minister for responding positively. I have been in the House for long enough to know that Ministers rarely respond positively to approaches, even cross-party ones, so it is welcome that the Minister has taken on board the spirit of the proposal. I also pay tribute to Bill Browder—many Members in the Chamber will have met him—who has really led the charge on this issue. However, I am sure that Bill wants not a tribute but action.

I share some of the reservations of the hon. Member for Rhondda (Chris Bryant). In other countries, assets have been seized in relation to the Magnitsky case, but it seems that that is not so in London. Many Members would accept that London is a place where many Russians, sometimes of rather dubious backgrounds, like to put their assets, so it seems strange, while assets are being seized almost everywhere else around the world in relation to this case, for London to be the one place where they have not been seized.

The Minister reassured us that the prosecuting authorities—of course he cannot put pressure on them, but he has confirmed this—would prosecute if there was evidence. I assure Bill Browder and others that they will have the support of the House if evidence—or further or more detailed evidence—is forthcoming, as the Minister for one endorsed the need for very firm action. He said that action might be taken under existing legislation, but that it could be taken even more effectively under Government new clause 7.

Like other Members, I would prefer new clause 1 to the Government’s proposal, but I understand why the Minister preferred to table his own new clause. Unfortunately, I suspect that we would not have the numbers in the House to win a Division today on cross-party new clause 1. We will therefore have to follow the matter very closely, and I welcome the fact that the Minister will publish statistics.

Several hon. Members referred to the Magnitsky Act. If they want to see the list of names, they could read my early-day motion 1344—it has been signed by a number of Members—which lists Russian citizens subject to the Magnitsky Act in America. The hon. Member for Rhondda reminded me that I need to retable my early-day motion because, as he said, new names have been added to the American list. The information is there if Members need to refer to it.

I welcome the fact that the Government have moved on this issue, but the proof of the pudding will be in the eating. If evidence is forthcoming that such assets are in this country, in the way that Bill Browder and others believe is the case, the Government must ensure that those responsible are prosecuted and brought to justice for the gross human rights violations they have committed.

[Mr Andrew Mitchell (Sutton Coldfield) (Con)]

I, as a signatory of new clause 1, can be very brief because my right hon. and hon. Friends, and indeed Opposition Members, have made the case with such eloquence on what is known as the Magnitsky amendment. It seems to me, as such a signatory, that the Government have listened. The Minister has quite rightly heard the cross-party voice on these issues and tabled new clause 7, and I certainly congratulate him on having achieved that.

My hon. Friend the Member for Esher and Walton (Mr Raab), who has done such a good job on this issue, pointed out, in accepting the Government new clause, that we must not allow the best to be the enemy of the good. The story that my right hon. Friend the Member for Brentwood and Ongar (Sir Eric Pickles), the anti-corruption tsar, told us about his Paris meeting reminds me of just how complex is the attack on corruption, of which we must all be a part.

I remember a very eminent New York anti-corruption lawyer, who had been involved in a variety of anti-corruption mechanisms, telling me that he was once invited to Afghanistan to give a lecture on how to tackle corruption, and a vast number of Afghan officials turned up in the auditorium. To his horror, observing the Rolex watches on the wrists of so many of those officials, he suddenly realised halfway through the lecture that they had turned up to learn not how to tackle corruption, but how to evade the tackling of corruption.

Corruption is a cancer: it is insidious in a whole variety of ways. One of the good things about the Bill is that it seeks, in a very complex area, to make progress on some very clear aspects of the issue. The former Prime Minister, the former Chancellor of the Exchequer and other Government Members have also made a very big contribution in the fight to tackle corruption in this area.

I want to make two brief final points. The first is that in the Magnitsky case, as I think the Minister has recognised—I know Bill Browder and I was absolutely horrified to hear the tale of the experience he has undergone—it is clear that the British law enforcement agencies have shown, to put it no more strongly than this, a degree of confusion, delay and obfuscation in their handling of such matters. There are issues of administrative co-ordination and effectiveness, and I very much hope that the Minister ensures that tackling this issue remains clearly on his agenda.

My second and final point is that Britain needs to send a very clear signal about the approach we take to human rights abuses and money laundering. The failure to send a very clear signal—I hope that that will be ended by the decision the House will take this afternoon—damages our international relations. Britain’s relations and dealings with Russia are very complex. We need to work with Russia on a number of matters on which we have a common interest, but we also need to be absolutely clear where we stand on the issues—my hon. Friend the Member for Huntingdon (Mr Djanogly) set them out so eloquently in his speech—so that there is no misunderstanding about where the British Government stand on many of the horrific aspects of Russian governance and conduct. I have been a strong critic in this House of Russian abuses of human rights and, indeed, of war crimes in Syria. Given the other dimension of areas on which we must be able to work constructively with Russia, it is extremely important that we in this House are absolutely clear with the Government about where we stand on human rights issues.