Summit on Illicit Finance

Wendy Morton Excerpts

Tuesday 9th June 2026 Westminster Hall

[Wendy Morton (Aldridge-Brownhills) (Con)]

It is a pleasure to serve under your chairmanship, Sir Roger. I congratulate the hon. Member for North Norfolk (Steff Aquarone) on securing a debate on an issue of significant importance to the UK’s national security and economic integrity.

There is clearly broad agreement across the House that illicit finance fuels corruption, organised crime, hostile state activity and conflict around the world. Dirty money undermines the rule of law, weakens democratic institutions and threatens our security at home and abroad.

The last Conservative Government took important steps to strengthen transparency, tackle economic crime and improve international co-operation, as my right hon. Friend and neighbour the Member for Sutton Coldfield (Sir Andrew Mitchell) said. Under David Cameron’s leadership as both Prime Minister and latterly as Foreign Secretary, the UK was at the forefront of the global anti-corruption agenda, convening the first of its kind anti-corruption summit in 2016, and driving greater international focus on beneficial ownership, transparency and the recovery of stolen assets.

I am proud that when in government my party strengthened sanctions enforcement following Russia’s illegal invasion of Ukraine. We introduced the Economic Crime and Corporate Transparency Act 2023 and sought to close loopholes that allowed illicit finance to flow through international financial systems. Against that backdrop, I welcome the Government’s commitment to host the illicit finance summit later this year. The Government have said that the summit will focus on global enforcement, asset recovery, illicit gold trading, property-based money laundering and the misuse of cryptoassets. Those are important priorities and areas where international co-operation is absolutely essential.

However, the success of any summit will ultimately be judged not simply by what is happening, but by the practical outcomes that it delivers. I have a number of the questions for the Minister. On Russia, what specific proposals will the Government bring forward to strengthen sanctions enforcement and close the remaining loopholes that enable sanction circumvention? What assessment has been made of the effectiveness of current enforcement mechanisms and what further action is being considered to target the networks and the intermediaries that continue to facilitate the movement of illicit Russian funds?

It is in that context that I raise concerns that the Government, in recent weeks, have quietly issued a licence allowing imports of Russian oil refined in third countries. Can the Minister explain what rationale justifies that decision when the Ukraine sanctions commissioner has directly told us that the Government’s actions

“may still generate additional revenues for Russia’s war machine”?

On Iran, illicit finance remains central to the regime’s ability to fund destabilising activities across the middle east. What discussions will take place at the summit on disrupting Iranian financial networks and strengthening international co-operation against sanctions evasion by the Iranian regime and its proxies?

The Government have rightly highlighted the importance of international partnerships. The Minister will know that the overseas territories play a vital role in supporting our economic interests and the global financial system. Can he update the House on the discussions that are taking place with the overseas territories’ Governments ahead of the summit?

Can the Minister also explain how the recent restructuring in the FCDO affects the UK’s ability to tackle illicit finance internationally? What assessment has been made of whether the FCDO currently has the resources necessary to meet the ambitions his Government have set out for the summit? Finally, what legacy does he expect this summit to leave behind? I raise that question because the 2016 anti-corruption summit and the work that followed helped to establish a framework for international action that endured well beyond the event itself. It is important that this summit has a legacy, too.

The Opposition support robust action against illicit finance and efforts to strengthen sanction enforcement, to combat corruption and protect the integrity of the international financial system. We want the UK to remain a global leader in this field, so I look forward to hearing from the Minister how his Government intend to translate the ambitions of the summit into meaningful and lasting action.