Intelligence: Russia

Debate between Baroness Kramer and Baroness Williams of Trafford

Monday 31st January 2022 Lords Chamber

[Baroness Williams of Trafford (Con)]

I think he kind of talked about both: visas and money coming into this country. He will know from legislation that I brought in previously that, through unexplained wealth orders and things like that, we are doing everything we can to stop the flow of illicit finance in this country. I cannot comment further on golden visas, except to say that we are very, very careful about the visas we issue and the people we let into this country.

[Baroness Kramer (LD)]

My Lords, speaking of legislation that has not appeared, will the Minister acknowledge, as other Ministers have, that the Bill providing for a public register of the beneficial owners of property in the UK has been ready to go for weeks but has not yet been introduced in this House? Will she also confirm that the intelligence services have no hope of dealing with what is known as the London laundromat until that Bill becomes law, when civic society across the globe and activists can assist the intelligence services in getting to the bottom of these chains of ownership that lead, in the end, to oligarchs and kleptocrats?

[Baroness Williams of Trafford (Con)]

The noble Baroness illustrates some of the complexities around state activity. She is absolutely right—I recall her being involved in the Bill—and the Government have made a start on this. We have things such as unexplained wealth orders in place, and we will be bringing forward legislation to deal with the various threats that are impeding the rule of law and our economy.

European Union (Withdrawal Agreement) Bill

Debate between Baroness Kramer and Baroness Williams of Trafford

Report stage & Report stage (Hansard): House of Lords & Report: 1st sitting: House of Lords & Report: 1st sitting
Monday 20th January 2020 Lords Chamber

[Baroness Williams of Trafford]

I totally agree with my noble friend Lord Ridley. His point about ID card creep is also part of this point. It is exactly what happened to the Windrush generation. The Government are adamant that we must avoid a situation in which, years down the line, EU citizens who have built their lives here find themselves struggling to prove their rights and entitlements in the UK.

The approach suggested in the amendment is also unnecessary. Managing the end of free movement in the UK and providing certainty for resident EU citizens during that transition has been an absolute priority. We firmly believe that the current, constitutive approach under the EU settlement scheme is the right one. According to the latest internal figures, more than 2.8 million applications have been received and 2.5 million grants of status have already been made. The Home Office, as I said the other day, is processing up to 20,000 applications a day.

We are working with communities up and down the country to raise awareness of the scheme and keep up this momentum. It already allows EU citizens who would be protected by the agreements and other people the Government have chosen to protect, such as many non-working spouses and primary carers not covered by the agreements, to obtain a UK immigration status, enabling them to remain here permanently after the end of the implementation period. This status will mean that their rights and entitlements under the agreements are guaranteed. However, the new clause would interrupt the flow of a system that is well under way, already working well and achieving precisely what it was designed and implemented to do: providing certainty to those who have made their lives here.

EU citizens resident in the UK before the end of the implementation period will have different, enhanced rights compared with those who arrive afterwards. It is therefore essential that these citizens have the evidence they need to demonstrate their rights in the UK. This is also why we are seeing many other EU member states planning to take exactly the same approach and establish a constitutive system for UK nationals living there.

The EU settlement scheme means that those who have built their lives here will not find themselves struggling to evidence their rights in the UK, or have to carry around multiple bits of paper to evidence their previous UK residence. We are legally required to issue all successful applicants under the EU settlement scheme with a written notification of their UK immigration status, and all successful applicants are given a letter confirming their status. The status can be viewed online and shared securely with others, but as noble Lords have said it is not proof but confirmation.

Access to the online status service is via secure two-factor authentication using the document, such as a passport or national ID card, which the individual used to prove their identity and their date of birth. The user is then required to input a one-time use code, sent to their mobile number or email address. This ensures that no one else can access the individual’s information without their permission. Once in the service, users can view their information and update their details, and can choose to share their status information with third parties. This might be with employers, to prove their right to work, or with other service providers, to prove their right to access public services, benefits or the NHS.

When an individual chooses to share their information, they share only the content that is specific and relevant to the checks in question, as I went through the other day. This will include their name, their image and any information that is relevant to that particular purpose. This supports data minimisation, ensuring that only the information required is made available, which is not possible with a single physical document.

All our digital services are designed and developed to be robust and reliable, with extensive internal and user testing before launch to ensure that they perform as expected. We will monitor services to ensure that any issues are identified and acted upon. Mechanisms are already in place for users to report any technical issues with the service. We continue to refine and improve these processes, and all data will be treated in compliance with data protection law.

We do not want to go back to issuing physical documents, which, as we know, can be lost, stolen or tampered with. Our vision for the future is a digital status and service for all migrants. The continuation of a declaratory system would force employers, banks and other service providers to wade through various documents to establish for themselves whether the person is indeed protected by the agreements. Such an approach would be burdensome, for the citizens and others, and for the very systems we have committed to protect.

I will pick up a number of questions which noble Lords asked. Several noble Lords talked about airports. The noble Lord, Lord Oates, gave the example of a friend who was questioned at the airport, and the noble Lord, Lord Carlile, talked about the border, too. What happens at the border is proof of identity to cross the border, as opposed to proof of status to be in the UK.

The noble Lord, Lord McNicol, talked about hiring a car abroad. In doing so, he inadvertently proved the point that, with the dispensing of the paper part of the licence, all one needs when abroad is a code to prove that you can hire a car. You do not need the physical document, you need only the code—as I learned to my peril when I did not realise that that was what you had to do.

[Baroness Kramer (LD)]

I must correct the Minister. Having had great faith and gone abroad with my code, on attempting to rent a car in the United States and Spain, I found on both occasions that the process failed miserably. Only the fact that I had a piece of paper with me enabled me to rent the car. I hope the Minister will reply to the noble Baroness, Lady Altmann, who asked what the back-up is when it goes wrong or there is a cyberattack.

Money Laundering

Debate between Baroness Kramer and Baroness Williams of Trafford

Monday 19th March 2018 Lords Chamber

[Baroness Williams of Trafford]

My Lords, I can agree with the noble Lord on one thing: the impact of money laundering in the UK. However, in 2016, 1,435 people were convicted of money laundering in England and Wales. The Government established the joint money-laundering intelligence task force in 2015 to tackle the issue, and between May 2016 and March 2017 it contributed to more than 1,000 bank-led investigations into suspect customers, the closure of more than 450 suspicious bank accounts and the freezing of £7 million in suspected criminal funds.

The noble Lord talked about Labour putting forward the Magnitsky amendment. I certainly remember that, under the Criminal Finances Bill, it was the noble Baroness, Lady Stern, who put forward the Magnitsky amendment in this House and Labour did very little to tackle serious crime and corruption in this country, so I do not accept the charge he makes that we have done nothing to address this issue.

[Baroness Kramer (LD)]

My Lords, I have only three very quick points. First, will the Government speed up the process of getting a public register of overseas ownership of property in the UK? Transparency International estimates that some £4 billion-worth of property in London alone has been bought by suspicious wealth. Frankly, the programme the Government have laid out gives all the perpetrators plenty of opportunity to reorganise their finances. Will they please move?

Secondly, having listened—I hope—to calls from both the Minister’s own Benches as well as from the other Benches, will the Government institute a verification process at Companies House so that information on corporate ownership can be established with some clarity and accuracy as a mechanism for trying to counter laundering?

Lastly, I want to ask the Minister about a letter sent to me—I believe it was put in the Library—by her colleague the noble Lord, Lord Young of Cookham, who is in his place. It is on the freezing order applying to Andrei Lugovoi and Dmitry Kovtun. In the letter, the Minister referred to a comment he had made that the freezing order applied to overseas banks. He then said:

“I should more precisely have said that the freezing order applies to any UK incorporated banks overseas”.


Could she now give us an assurance that overseas banks that have money in the UK—whether it is through branch arrangements or any other—are covered by those freezing orders, because presumably, they will be very important in the next steps to be taken in the Salisbury poisoning case?

[Baroness Williams of Trafford]

I thank the noble Baroness for those questions. The Government will publish draft legislation on the creation of a register of the beneficial ownership of overseas companies that own property in the UK or bid for government contracts. This will mean that overseas countries that own or buy property or participate in central government procurement will be required to provide details of their ultimate owners. This will reduce the opportunities for criminals to use shell companies to launder their illicitly gained wealth in London properties, and it will make it easier for law enforcement to track and seize criminal funds. I can confirm the freezing order process for overseas banks so that criminals cannot hide their finances anywhere. Those freezing orders can be applied overseas as well.

The noble Baroness asked me a third question, but because of the noise in the Chamber, I did not quite hear what she said.

[Baroness Kramer]

Just to be helpful, this was a call for verification. As she will know, there is a public register at Companies House, which I greatly approve of, but there is no verification process. This has led to criticism from around the House.

[Baroness Williams of Trafford]

The noble Baroness makes a fair point. We are at a relatively early point with the public register and it is constantly being checked and reviewed to ensure that the information contained within is accurate.

Serious Fraud Office

Debate between Baroness Kramer and Baroness Williams of Trafford

Wednesday 13th December 2017 Lords Chamber

[Baroness Kramer (LD)]

My Lords, the ability of this new body to tackle broader economic crime would be greatly enhanced if we could extend the concept of corporate criminal liability, particularly to issues such as money laundering—and the mechanism for that is failure to prevent. Will the Minister include failure-to-prevent clauses in the Sanctions and Anti-Money Laundering Bill going through this House?

[Baroness Williams of Trafford]

My Lords, I am not involved in the Sanctions and Anti-Money Laundering Bill—unlike every other piece of legislation, which I do seem to be involved in. However, I take the noble Baroness’s point. I think the broader point here is that there will be a multiagency response to different types of fraud and that they can perhaps do more good as a partnership than they can as a series of isolated bodies.

Criminal Finances Bill

Debate between Baroness Kramer and Baroness Williams of Trafford

Committee: 2nd sitting (Hansard): House of Lords
Monday 3rd April 2017 Lords Chamber

[Baroness Kramer]

My Lords, perhaps I may add one phrase only to this debate. I want to speak to Amendment 170 and suggest to the Government that this is frankly a no-brainer. We cannot afford to have inappropriate directors continuing to run companies, particularly when their inappropriate or inadequate behaviour has been exposed in the kind of circumstances discussed under Amendment 170. It is really important that the courts have a full range of tools. We no longer live in a world where the old-school tie and friendships determine who the appropriate directors of companies are. They have to be held to professional and appropriate standards. This proposed new clause would enable that to happen and I frankly cannot see why it should present any difficulties to the Government.

[Baroness Williams of Trafford]

My Lords, I am pleased that the amendments in this group have allowed us to have an extended debate on the tax evasion offences in Part 3 of the Bill. I am pleased to say that the Government are supportive of the intentions of these amendments, although that is not to say that further legislation is necessarily required.

Amendment 164 seeks to require the Secretary of State to publish an annual report on the number of companies that have, under the Public Contracts Regulations 2015, been excluded from tendering for public contracts, or had existing contracts terminated after being charged under the new offences. I fully agree that contracting authorities should be able to exclude bidders that have been convicted under the new offence. The Public Contracts Regulations allow for this in appropriate cases. They grant contracting authorities discretion to refuse to award a public contract to an entity that has been involved in grave professional misconduct. Such misconduct may include committing the new offences of corporate failure to prevent the criminal facilitation of tax evasion. However, government does not collect information centrally on the number of organisations that have been excluded from public contracts under the 2015 regulations. This is because these decisions to exclude are taken by individual contracting authorities on a case-by-case basis, and this may include the new corporate offences.

Introducing a reporting requirement would create a burden on contracting authorities. Each contracting authority would have to make a return to central government, detailing the occasions that exclusion from a bidding process has occurred, and central government would then have to collate all these reports in order to compile national statistics to be published in the report. Such a reporting requirement would go against the Government’s drive to simplify the public procurement process and to cut red tape.

Current efforts are focused on ensuring that contracting authorities have the necessary information to know whether those bidding for contracts have relevant convictions so that contracting authorities can make more informed decisions on whether to exclude them. This includes the introduction of a robust conviction-checking process to prevent bidders with convictions for relevant offences—including the new offences—winning public contracts. This was announced at last year’s anti-corruption summit and is about to be piloted by the Crown Commercial Service.

Amendment 165 seeks to introduce a system of corporate probation orders. This would allow a court to require relevant bodies found guilty of the new corporate offences to amend their prevention procedures. I welcome the noble Lords’ amendment. It is absolutely right that relevant bodies convicted of the new offences, and thus found to have inadequate prevention procedures, should be required to implement changes to those procedures. In response, I draw noble Lords’ attention to Clause 48(2) of the Bill, which adds the corporate offences to the list of offences for which a serious crime prevention order can be imposed under the Serious Crime Act 2007. This enables a court passing sentence on a person, including a legal person such as a corporate body, to impose a serious crime prevention order to prevent, restrict or disrupt their involvement in serious crime by imposing prohibitions, restrictions or requirements on them. The terms of these orders may require the relevant body to allow a law enforcement agency to monitor how it provides services in the future.

Relevant bodies convicted of the new offences are criminals. They do not require special or different sentencing powers. They can be adequately sentenced under the existing criminal law, using a serious crime prevention order to enforce change to prevention procedures. Such an order can do anything that a corporate probation order would. Alternatively, similar provision can be included within the terms of a deferred prosecution agreement. I trust therefore that noble Lords will see that their commendable objective can already be achieved within existing law.

I thank the noble Baroness, Lady Bowles, for Amendment 170. I share concerns about ensuring that those who are unfit to be directors are identified and disqualified from holding such posts. The amendment seeks to amend the Company Directors Disqualification Act 1986 in order to allow a company director to be disqualified by the court when a relevant body is found to have committed one of the new corporate offences, or a similar failure to prevent an offence under the Bribery Act 2010.

At present, under the Company Directors Disqualification Act 1986, a company director can be disqualified on conviction by the sentencing court. Alternatively, the Secretary of State for Business, Energy and Industrial Strategy can apply to the High Court for an order that a company director be disqualified. In either case, the company director would be a party to the proceedings, and thus given the opportunity to present their defence.

Criminal Finances Bill

Debate between Baroness Kramer and Baroness Williams of Trafford

Committee: 1st sitting (Hansard): House of Lords
Tuesday 28th March 2017 Lords Chamber

[Baroness Williams of Trafford]

The Government are never complacent in any area of law they introduce; I would never say that everything is perfect.

[Baroness Kramer]

My Lords, obviously I am going to withdraw the amendment, but I want first to make a couple of points. I am not going to give up on this issue. Let me point out that a moment ago the Minister talked about an office for money laundering to be set up within the FCA. As far as I am concerned, that is an ideal pattern to follow. The notion that this proposal would create an extraordinary and hefty bureaucracy is not credible because, frankly, the entire bureaucracy would probably be paid for by one whistleblower revealing one scandal on the scale that we have seen in recent years. I reject the idea that this is onerous. There are plenty of templates to follow that would allow us to do this sensibly.

On the financial incentive, I do not believe for a moment that whistleblowers do it for the money. The money is a recognition that they have destroyed their future. There may be some protection within the company they work for which ensures that they are not dismissed, but neither I nor anyone else can be persuaded that people do not look at whistleblowers and decide that they are not quite right for this promotion, that project or opportunity. If they try to change companies they go with what is almost a black spot on their hand, marking them out as someone it is perhaps better not to take a risk on. That is a reality which the Government have never faced up to.

When dealing with detriment, I would recommend the Minister and others who are interested to connect with the charity Whistleblower.co.uk, which would be delighted to provide them with a great deal of detail. I hesitate to mention individuals without their specific permission, but all the protections have turned out to be completely useless for them. People’s lives have been wrecked. Frankly, even the regulator would agree that despite all the systems that are in place, people’s lives have been wrecked, and there has only been some tinkering at the edges. Nothing has happened to bring about fundamental change. All this comes together in the poor statistics that I set out when moving the amendment. Very few people are coming forward and blowing the whistle on substantive issues that can affect our absolutely massive financial services sector. This allows the industry to be rather complacent, and that is exceedingly dangerous.

I hope that the Minister will recognise that while I will withdraw the amendment, we are nowhere near coming to the end of this issue.

Gender Pay Gap

Debate between Baroness Kramer and Baroness Williams of Trafford

Tuesday 20th December 2016 Lords Chamber

[Baroness Williams of Trafford]

My Lords, the Government, starting with the previous Prime Minister, are most certainly committed to the very ends that the noble Baroness seeks. Not only are women contributing to tax, but they also bring the huge benefit of increasing GDP in this country.

[Baroness Kramer (LD)]

My Lords, recent reports by Deloitte and the British Computer Society have underscored that where women are educated in STEM subjects and then pursue careers in that field, the gender pay gap is at its narrowest. Does the Minister agree that there are still huge cultural, social and other barriers that discourage many women from pursuing those opportunities and avenues? Would the Government be willing to put some resources behind trying to break down those barriers in an effective way, because leadership is surely required in this area?

[Baroness Williams of Trafford]

My daughter has just graduated in a STEM subject and is now working with one of the big four accountancy firms. That firm is going to great lengths to improve the diversity of its workforce. Some companies are much better than others at encouraging diversity, but I look forward to the day when diversity is the norm and those who do not engage in this agenda stand out by their lack of doing so.

Local Authorities: Fossil Fuel Holdings

Debate between Baroness Kramer and Baroness Williams of Trafford

Wednesday 24th February 2016 Lords Chamber

[Baroness Williams of Trafford]

My Lords, at the risk of repeating myself—I have said this several times over the last couple of days—if a local authority invests in a company whose share price is dropping significantly, it might be wise, in order to maximise the return for its investors, to invest in another company whose share price is increasing. That is a decision for it to make about its pension funds.

[Baroness Kramer (LD)]

My Lords, is the Minister aware that many pension funds regard it as their responsibility to have the best long-term returns, and therefore see sustainability of investments as absolutely key? She seems to be recommending that they go with short-term behaviour in the marketplace—behaviour that the Chancellor is frantically trying to change and which responsible pension funds have long since rejected, which is why many have ethical standards in their investment decisions.

[Baroness Williams of Trafford]

My Lords, local authorities should make decisions based on long-term and short-term investments in their portfolio and should keep an eye on both to ensure the best performance of those pension funds.