Economic Crime and Corporate Transparency Bill

Debate between Tom Tugendhat and Bob Seely

Report stage
Wednesday 25th January 2023 Commons Chamber

[Tom Tugendhat]

It is a pleasure to see you in your place, Mr Deputy Speaker, and it is the first time I have had the privilege of speaking under your chairmanship on these matters. It is also a pleasure to see so many of the usual faces on this matter. Many of us have gone over these questions in Committee and, actually, in the many years beforehand in various different ways, so it is an enormous privilege to be here. It is particularly a privilege to be speaking after the Minister my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) did such a brilliant job yesterday. I am only picking up where he left off, so I am afraid the second act will not be nearly as compelling as the first.

All those who participated in the Bill Committee gave enormous insights into various different perceptions of how we should be thinking about economic crime and corporate transparency. We have had many interesting debates, and I thank enormously those who have taken part in the various different ways. The fact that we have a two-day debate on Report speaks pretty clearly about the significant size and complexity of this Bill.

Yesterday, we debated parts 1 to 3, which cover Companies House reform and corporate transparency. Today, we turn our attention to parts 4 to 6. The clauses in part 4 create new powers that allow law enforcement to more quickly and easily seize and recover cryptoassets. The creation of the civil forfeiture power for cryptoassets will mitigate the risk posed by those who cannot be criminally prosecuted, but who use their funds to further criminality or for terrorist purposes. This did not prove to be particularly contentious in Committee.

In part 5 of the Bill, we are making it easier for businesses to share information more effectively with each other and with law enforcement to prevent and detect economic crime. We are also creating new exemptions to reduce unnecessary reporting by businesses carrying out transactions on behalf of their customers. We are also giving frontline legal services regulators enhanced enforcement powers to support them as they uphold the economic crime agenda within their regulated community.

I will briefly summarise the amendments we have tabled relating to parts 4, 5 and 6 of the Bill. Many of them address the debate that took place in Committee and will ensure that the Bill works as intended. I should acknowledge that the amendments are perhaps slightly greater in number than we would have liked. The vast majority—amendments 51 and 57 to 100—are minor technical or consequential amendments to ensure that the detail of the cryptoasset measures will work effectively and can be used as soon as possible. That reflects the technical detail of the subject area and the need to make the changes work for each of the jurisdictions of England and Wales, Scotland and Northern Ireland that are covered by the Proceeds of Crime Act 2002.

I now turn to the more substantive Government amendments. New clause 14 allows the Solicitors Regulation Authority to proactively request information from its regulated community for the purpose of monitoring compliance with the economic crime regime. It will enable the SRA to monitor and detect breaches of the rules and legislation related to economic crime, including offences related to money laundering, terrorist financing and sanctions.

Government amendments 44 to 47 to clauses 171 and 172 concern information orders. They seek to clarify the cases in which the information order power can be used and to provide clarity to operational partners about how they should be used. They will ensure that the power can be used only for the criminal intelligence functions of the National Crime Agency, and that when assessing a request for information from a foreign intelligence unit, the NCA must be satisfied that the information would support the FIU’s intelligence function.

[Bob Seely (Isle of Wight) (Con)]

On the SRA, will the Bill address the strategic lawsuits against public participation that we have been discussing for the last couple of days, or does it purely concern money laundering and other offences unrelated to SLAPPs?

[Tom Tugendhat]

The Bill is concerned only with economic crime and corporate transparency, and the regulations will cover only that. Many Ministers, including the Lord Chancellor, have spoken about SLAPPs—I will touch on them later—but the reality is that they require a separate jurisdiction and a separate Bill.

Government amendments 48 and 49 concern information sharing. In Committee, Opposition Members rightly pointed out that our proposed definition of large accountancy firms did not include insolvency practitioners, auditors and tax advisers. I thank them for that. These amendments will rectify that omission by expanding the scope of the indirect information sharing clauses to include those sectors.

In addition to the Government amendments, several other amendments on a broad range of topics will be debated today. As in Committee, I look forward to what I anticipate will be a lively but extremely well-considered debate. The contributions of all hon. Members who participated in earlier debates have helped to shape the Bill into an effective tool to tackle illicit finance and ensure that the UK is a great place to do legitimate business.

I know that there are places where hon. Members would like the Bill to go further and do more. Indeed, I am as keen as many of them to solve some of the outstanding problems that we all wish to address, but we need to ensure that those ambitions are delivered in the most effective way and that we use the appropriate legislative vehicles to ensure that they have the desired outcome. Limiting the scope to just economic crime can, in several cases, create more problems than it solves, and I assure right hon. and hon. Members that I have strenuously tested what can be effectively delivered within the scope of the Bill.

--- Later in debate ---

[Tom Tugendhat]

The right hon. Gentleman is extremely kind about my former work and, typically, slightly less so about my current employ. He can be assured that, no doubt, it will be temporary, as it is for all occupants.

That matter has seized my attention and has been of some interest to me in further discussions in different areas. I will not put a time on it, because it is not my ministerial responsibility; the right hon. Gentleman will know from his time in Government that talking across other Ministers’ briefs does not always help to advance the case. I assure him, however, that it has come up frequently in conversation with an intent to bring something forward. As I said, the Lord Chancellor has spoken about it to highlight that it is an area where various elements of change are necessary, so I look forward to hearing the proposals as they come forward. I certainly do not think that the matter can wait. We have sadly seen SLAPPs used against such inspiring examples as Eliot Higgins and Catherine Belton, who have stood up for justice in this country and around the world.

[Bob Seely]

Will the Minister give way?

[Tom Tugendhat]

I will not, because I am going to close.

Despite all the areas that we could have gone into, and would like to go into at a different time, the Bill is closely focused on economic crime and corporate transparency for the purpose of passing a series of measures that are essential to ensure that we keep our country safe and our economic jurisdictions clean.

Overseas Chinese Police Stations in UK: Legal Status

Debate between Tom Tugendhat and Bob Seely

Tuesday 1st November 2022 Commons Chamber

[Tom Tugendhat]

It is like an FAC reunion hearing the hon. Gentleman, my former Committee friend, making his points. He is right that the way we engage with authoritarian dictatorships and powers around the world is constantly under review, and, as he will understand, that is going to be of particular interest to me in my new role. He is also right that the devolved Administrations and Governments need an absolute commitment that they will be part of this conversation, and he knows that I will always work with every part of the United Kingdom and make sure that voices are heard and support is offered. I am committed to the defence of the whole of the United Kingdom. I am also committed to co-operating with foreign partners, and the hon. Gentleman rightly mentioned the FBI. We also work closely with Canada and Australia on many of these issues, and indeed with many European countries, who have been extremely good partners and very firm friends.

[Bob Seely (Isle of Wight) (Con)]

I add to the FAC reunion. I congratulate the Minister on his new role and my hon. Friend the Member for Rutland and Melton (Alicia Kearns) on securing the urgent question. Do any other states have similar ad hoc covert or overt police stations in the United Kingdom, and for how long have the Government known about these Chinese police stations in the UK? It is great that the Minister speaks tough on this, and I know he has talked about it at length as have many other members of the FAC, but to echo the words of my right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith) and my hon. Friend the Member for Worcester (Mr Walker), we have had increasingly tough words for too long. What we have not had is a realistic and robust defence of our democratic values and democratic institutions, so can the Government now get real on this?

[Tom Tugendhat]

My hon. Friend is right that it has been alleged that other states have had connections in this regard, and that is being looked at. On the length of time question, I hope he will forgive me for not going into operational details, but he can be absolutely assured that that will prove part of the assessment. As to action, I merely urge him to wait a few moments as I will be making a statement very shortly that I hope will answer some of his questions.

Planning and House Building

Debate between Tom Tugendhat and Bob Seely

Thursday 8th October 2020 Commons Chamber

[Bob Seely]

I agree with my hon. Friend and thank him for his intervention.

I will now make a few brief points about my constituency. The Government tell rural England that it needs to do its bit, and the Isle of Wight has a story that is similar to many others. Since 1960, the population of our beautiful small Island has grown by 50%—not 15%, but 50%. In the same period, the populations of Newcastle, Sunderland, Hull, Liverpool, Manchester, Birmingham, and Stoke-on-Trent have all declined, not relatively but in absolute terms. The message from many parts of Britain is that we have been doing our bit for decades, and levelling up is about other people now doing theirs. The new standard methodology simply does not make sense for the Island. It is based on local income calculations, but housing demand in my patch, and others, is driven by other factors—in my case, the migration of retirees from across Britain.

[Tom Tugendhat (Tonbridge and Malling) (Con)]

My hon. Friend is making a powerful point, particularly because he emphasises the localism that comes into question. Areas such as the Isle of Wight are distinct. Kent is also distinct. Does he agree that local control exercised by local councillors at county, district and borough level is exactly where this should lie?

[Bob Seely]

I thoroughly agree with my hon. Friend. The good folks who retire to the Isle of Wight use assets. They use cash from house sales, not income, to buy. Therefore, affordability criteria based on income make little sense and artificially inflate our housing need by 70%. Our targets have little to do with our need. The indigenous population of the Isle of Wight is expected to decline by 11,000. Official figures show that all our population growth until 2034 will come from those who are 65-plus, either indigenous or retirees. It is great that we have retirees—don’t get me wrong—and I look forward to being one, one day. However, the demographic imbalance damages our society as well as our economy. For the first time in 50 years, we need the White Paper to prioritise Islanders, young and old, and not primarily to build for a mainland retirement market. I have yet to meet a single Islander who disagrees with that agenda.

We face exceptional housing constraints. We have our own housing industry. As a legal baseline, our housing industry can build 200 to 250 units a year. We have managed 350 units in the past few years—not affordable, and almost all on low-density greenfield estates that damage our tourism economy. The Government might as well be asking us to lead a moon landing programme, for all our ability to deliver either the current targets or the new ones. We are being set up for failure, and like other Members, I find that difficult to accept. If the Minister wishes to build for young Islanders, I will show him where and how to build, and I will tell him what we need. The answer is not low-density greenfield sprawl, or the numbers demanded. The Isle of Wight Council and I are at one on that.

Time prevents me from going into other reasons such as infrastructure, all of which are made worse by the Island’s electricity, sewerage, water supply and hospitals, which are under pressure. In 40 years, we have had a 50% increase in population, and we had have half a mile of dual carriageway, and some cash last year to tinker with the wrong roundabout in Newport. Our 1938 rolling stock on Network Rail will now be upgraded to stock from 1970, which I suppose is modernity of a sort.

Huawei and 5G

Debate between Tom Tugendhat and Bob Seely

Wednesday 4th March 2020 Westminster Hall

[Tom Tugendhat]

Will the Minister give way?

[Bob Seely]

Will the Minister give way?