Money Laundering

Debate between Baroness Williams of Trafford and Baroness Kramer

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 Williams of Trafford and Baroness Kramer

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.