UK Parliament / Open data

Economic Crime (Transparency and Enforcement) Bill

It is both telling and deeply disappointing that it has taken a vicious and horrific conflict to bring us to this point of closing down the London laundromat.

I am speaking on behalf of my party rather than proposing any specific amendments, so I shall be very brief. I welcome amendments 42 to 44, tabled by the right hon. Member for Barking (Dame Margaret Hodge), to toughen penalties for non-compliance with the register. We see this as a necessary precondition to increase the immediate costs of non-compliance with UK law. We will also be supporting the right hon. Member’s new clauses 2 and 3.

Past actions, including the much-trumpeted unexplained wealth orders, have done little to dent Russian influence in London, partly owing to the Government’s poor resourcing of enforcement agencies. New clause 2 would bring long overdue scrutiny of that significant weakness, and renewed support for our enforcement agencies. As the Russia report made clear, illicit money does not simply flow into London and the UK by its own volition; it is eased in by a wide network of enablers, from bankers to lawyers to estate agents—Russia’s little helpers in stashing ill-gotten gains and off-the-shelf influence. That is why we will also be supporting new clause 3, as well as amendment 41, tabled by my SNP colleagues, in order to curb the ability of shell companies and other indirect ownership instruments, as well as their paid

London enablers, to obfuscate ownership structures for their clients. Those measures, along with new clauses 4 and 9, will tighten the massive loophole that prevents us from having a properly resourced, properly empowered and properly directed Companies House.

New clause 21 would help to address the issue of enforcement in Crown dependencies and British overseas territories. My hon. Friend the Member for Ceredigion (Ben Lake) has already raised with the Foreign Secretary the issue of the enforcement of sanctions in overseas territories such as Bermuda, where more than 700 Russian civilian aircraft are registered. We hope that new clause 21 will bring clarity to this long-standing grey area of enforcement.

However, none of this matters if the targets of the Bill are able to make off with their loot in the next few weeks. I therefore urge the Government to work with the Opposition, and to support new clauses 28 and 30 to ensure that the sanctions and the powers work to the maximum possible effect.

About this proceeding contribution

Reference

710 cc137-8 

Session

2021-22

Chamber / Committee

House of Commons chamber
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