Economic Crime and Corporate Transparency Bill

Debate between Bob Seely and Tom Tugendhat
Tom Tugendhat Portrait Tom Tugendhat
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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 Portrait Bob Seely (Isle of Wight) (Con)
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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 Portrait Tom Tugendhat
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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.

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Tom Tugendhat Portrait Tom Tugendhat
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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 Portrait Bob Seely
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Will the Minister give way?

Tom Tugendhat Portrait Tom Tugendhat
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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 Bob Seely and Tom Tugendhat
Tuesday 1st November 2022

(1 year, 4 months ago)

Commons Chamber
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.

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Tom Tugendhat Portrait Tom Tugendhat
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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 Portrait Bob Seely (Isle of Wight) (Con)
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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 Portrait Tom Tugendhat
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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 Bob Seely and Tom Tugendhat
Thursday 8th October 2020

(3 years, 5 months ago)

Commons Chamber
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Bob Seely Portrait Bob Seely
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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 Portrait Tom Tugendhat (Tonbridge and Malling) (Con)
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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 Portrait Bob Seely
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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 Bob Seely and Tom Tugendhat
Wednesday 4th March 2020

(4 years ago)

Westminster Hall
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Tom Tugendhat Portrait Tom Tugendhat
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Will the Minister give way?

Bob Seely Portrait Bob Seely
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Will the Minister give way?

Global Britain and the International Rules-based Order

Debate between Bob Seely and Tom Tugendhat
Thursday 6th September 2018

(5 years, 6 months ago)

Commons Chamber
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Tom Tugendhat Portrait Tom Tugendhat (Tonbridge and Malling) (Con)
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I beg to move,

That this House welcomes the Government’s aspiration to ensure the UK retains its influence and status as it prepares for departure from the EU; notes that for Global Britain to be more than a worthy aspiration the slogan must be backed by substance; further notes the threats to the international rules-based order posed, in particular, by the aggressive stance of the Russian Government; and therefore calls on the Government to publish by 31 October 2018 its assessment of the threats posed by Russia and other hostile states to the international rules-based order, and the Government’s strategy and resources for countering those threats.

It is a pleasure to rise to speak on this motion, which stands not only in my name but in the names of every other member of the Committee that I am privileged to chair. I am particularly privileged because we have such a wide range of views and yet such a harmonious existence; that is naturally down to their skill as politicians rather than mine as their convener. I am grateful they have kindly agreed to allow me to speak on this motion today.

We are here to talk about global Britain, and that is because—as the Clerk who will be expertly advising you throughout this debate, Mr Deputy Speaker, will be able to tell you, having been such an expert Clerk of my Committee beforehand—the debate is about how Britain resets its relationships as we move away from the structures that have kept us propped up according to some, or stable according to others, for the past 40 or 50 years. The argument for this country is really about how we set ourselves in this new, turbulent world. The Committee has asked the Foreign Office that question and we have, I am afraid, been extremely disappointed by the answer; we have found a headline and a slogan, but that is largely it.

Bob Seely Portrait Mr Bob Seely (Isle of Wight) (Con)
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I should like to echo my hon. Friend’s thoughts. With the best will in the world, and despite the fact that the Foreign Office is full of remarkably intelligent people and very good Ministers, there seems to be a great paucity of thought on what global Britain will actually consist of post Brexit. It will be different from now.

Tom Tugendhat Portrait Tom Tugendhat
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I am grateful to my fellow Committee member for making that point; he is absolutely right. That is exactly why we have called this debate. We want to explore the depths of this question and to challenge and push the Government. It is no accident that the motion calls on the Government to publish their assessment. We want to ensure that the House has the ability to exercise power over the Executive and call on them to deliver what we ask for. In this case that is an assessment, and I will say more about that in a moment.

Let me touch on a few of the areas where we have found answers to be lacking. The former permanent under-secretary at the Foreign Office, Sir Simon Fraser, told the Committee that there was a lot of “mushy thinking”, and Lord Owen, the former Foreign Secretary, has bemoaned the lack of consistency in what the Government are saying on the subject. He also said, in words that are now somewhat historical but that speak to the truth, that if he listened to the radio and heard the Foreign Secretary saying something that the Prime Minister would then contradict, he wanted to throw something at his radio. I think his radio has been saved by a recent change in appointments, and let us hope that the situation will be improved by some co-ordination. I hope that the Foreign Office will manifest the same change through improvements in its thinking.

The question of a global Britain is a wide one, and we have produced a series of reports to cover it. In our first chapter, we look at what the Government will do differently and how they will change their approach. A lot of that is to do with the reality of bilateralism in Europe and how Britain will work when we are no longer working through the structure of the European Council, Commission and Parliament. For example, we will have to increase the number of our diplomats around Europe who speak Dutch, French, Italian, Spanish and other languages. The bilateral missions will do the range of jobs that bilateral missions would otherwise normally do, but for various reasons have not needed to because the European Union has been our focus. We have looked into that question, but as yet we have not found the detail we would like to see. We have heard talk of money, true, and we have heard talk of languages, which again is good, but we have not heard talk of strategy, co-ordination or delivery.

We need to be clear-eyed here. We need an assessment of our place in the world, and we need to be clear-eyed about what we are going to do to maximise our position in the future. That involves understanding who we are and what we want. We have a real choice: either we choose to shape events or we will be shaped by them. Over many centuries, the people of the United Kingdom have got into the habit of being actors in this world, rather than being acted upon by it. I would like that to continue, but it will require co-ordination.

We have seen what happens without such co-ordination. We have seen the lack of co-ordination in some areas of eastern Europe as well as the expansion of Russian influence and the spread of corruption. We have seen the physical reality of that in the energy markets, with the Russian Government deliberately salami-slicing those markets in order to salami-slice alliances. That is why I have spoken out so strongly against the Nord Stream 2 project. But there is more: we have seen that happening there, but we are also seeing it happening in other parts of the world, as well as in our own alliance of NATO. In NATO, however, it is different. The truth is that NATO has not spent nearly enough on its own defence. Indeed, if every nation were to achieve the 2% target, rather than just a few, we would be talking about another $100 billion or so being made available for the defence of Europe. The fact that some nations are not willing to carry the burden of their own responsibility shames us all, because it weakens us all, so when we talk about global Britain we must be clear that we are actually talking about Britain in a network of alliances.

If I may, I would like to mention the late Senator John McCain. He was a friend to many in this House, and I see one of his good friends sitting here, my right hon. Friend the Member for Sevenoaks (Sir Michael Fallon). Senator McCain spoke out passionately for the transatlantic relationship because he fundamentally understood that the sovereignty of nations is not diminished by alliance but enhanced by it and that the freedoms of individuals are not hampered by co-operation but increased by it. That is the message that we must carry forward, and that is why I have been urging NATO to name its new headquarters after the late Senator. There would be no greater tribute to a great friend of the United Kingdom and Europe. I hope that we will see that change.

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Bob Seely Portrait Mr Seely
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My hon. Friend makes a good point. My answer is that they can be, but not necessarily; it is dependent on how the money is spent. I will come to that a bit later. They are not separate—that is certainly true—but it is how we deal with them as a whole that is the issue.

The next question is, what role is there for the Anglosphere? We talk about deepening relationships with Canada, Australia, New Zealand and the United States. What does that mean in practice? Is there a role for a global NATO and a NATO that looks at not only physical force but threats to democracy from cyber-attacks and other organisations and criminal and state actors?

What should the structure of the FCO be after Brexit? I am quite a fan of the argument that the FCO should be a super-Ministry, with oversight and a stronger role in leading—[Interruption.] I am glad that the Minister has just signed up to that. With the Department for International Trade, the Department for International Development, the Ministry of Defence, the Cabinet Office and the Prime Minister’s office, there are so many bits of government that are now involved in foreign affairs. We want coherence.

Above all, the critical thing we need to learn is how we integrate government better, not only here but at home, to deliver efficiently. I do not like Russia’s hybrid war, but it is an incredibly efficient use of power. I am not saying that that is our model, but efficiency and integration are important.

We need to rebalance our overseas spending. I do not believe that how the 0.7% is spent should be dictated by the Organisation for Security and Co-operation in Europe. We should dictate how we spend that money. There is an argument to suggest that the BBC, which is part of the broader aid budget, should be entirely funded through DFID, as should all peacekeeping operations, which are fundamental elements of aid.

Tom Tugendhat Portrait Tom Tugendhat
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I hope that my hon. Friend will forgive me for intruding just for a moment. Does he agree that the establishment of truth and facts is one of the fundamentals in building fair societies and therefore that the BBC’s role is not simply informative, but fundamental to the democratic survival of our partners and allies?

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Bob Seely Portrait Mr Seely
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Absolutely. I thank my hon. Friend for that intervention, but there is no “in effect” about it. The words “war crime” are bandied about quite often, but dropping a bomb on a hospital—is it in chapter 35 of book 4 of the Geneva conventions?—is absolutely specifically forbidden. There can be no other interpretation, yet for the past year and a half it has become one of the key de facto means of war in Syria.

Let me now turn briefly to Russia because I want to suggest some ideas to the Minister. Since March, the Government have been sensible and robust in the measures they have taken, but I believe it might be useful for them to consider some additional ideas, which I have outlined in an article today, when dealing primarily with the Russian threat but also more generally with the subversive threat to the United Kingdom. First, we need to systematically expose what the Kremlin is doing, not on an ad hoc basis through the Foreign Affairs Committee or other Committees, but by setting up a small, permanent, multi-agency group whose role is to understand and expose those subversive activities.

In the 1970s and ’80s the United States had such a group. It was called the Active Measures Working Group and was reckoned to be extremely successful in investigating and exposing Russian—then Soviet—subversive activities. Such subversive activities were called “active measures” in those days, but they meant assassinations, propaganda, smears, blackmail and all those other forms of spy warfare, with occasional support for terrorist groups and so on. I believe we need such a group now. It does not have to be big, and it could be seconded from other Departments, but I believe we need something more than what is done on an ad hoc basis.

Secondly, we need to introduce a list of PR agents, reputation management firms and others who work as agents for Russian influence in the UK, either directly or via proxies or third parties. Thirdly, we must consider laws that introduce a health warning on broadcasters. A counter-propaganda Bill is currently going through Congress to do just that, and we should consider the same thing. Fourthly, as I have mentioned, we need properly to fund World Service TV and radio, and specifically the Russian service.

Fifthly, we need to look at our visa regime, which I know my colleagues on the Foreign Affairs Committee are extremely concerned about. For Russia, Ukraine, Kazakhstan and other states from the former Soviet bloc, we make it very easy for oligarchs—basically kleptocrats—to come here, but very difficult for ordinary people. I believe we should make it much easier for ordinary Ruskies, and ordinary Ukrainians, Azerbaijanis and Kazakhstanis to come here if we judge them to be decent to do so, and much more difficult for the people who have stolen their money in the first place. We need to flip the system around.

Sixthly, the FCO needs to be more active in seeing Russian influence in the round. My hon. Friend the Member for Tonbridge and Malling (Tom Tugendhat) made, expertly as ever, a point about Nord Stream 2, which is not just a commercial venture; it is a critical piece of geopolitics that will affect Europe for years to come. We should have been much more active.

Tom Tugendhat Portrait Tom Tugendhat
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My hon. Friend is making a key point about that pipeline, but it is not just about that. When we see one of our important European partners invite a dictator to the wedding of the Foreign Minister, and we see them dancing together as though that dictator were some sort of champion of freedom and a partner of choice, and then at the end of the dance we see the Foreign Minister—the Foreign Minister of a NATO power and a European partner—curtsey to a murderous dictator, we must ask ourselves what is happening in our neighbourhood under our watch.

Bob Seely Portrait Mr Seely
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I completely agree with my hon. Friend. Our glorious Prime Minister might not be as good a dancer as Putin, but I would rather have her as our leader.

Seventhly, we should give Ofcom greater powers. The Latvian Government regularly highlight the negative content of Russian broadcasters based in London that spew propaganda into the Baltics. I do not believe that we should close such people down, or Russia Today or Sputnik, which churn out a regular diet of anti-western nonsense. However, we need to strengthen fines and rights of reply and ensure that Ofcom investigates those potential offences more quickly. Eighthly, we need to use financial and legal powers to hurt those people around Putin. I have talked to the Minister for Security, and I am aware that things are in the pipeline and happening, so watch this space.

Ninthly, we need to look at conventional deterrence. Russia’s political and financial dealings with the west are part of a multi-faceted strategy. We need to relearn the art of deterrence for both conventional weaponry and non-conventional conflict. It is better to be robust now than to encourage the sort of adventurism that we are now seeing—perhaps we should have been robust 10 years ago.

Tenthly, we need to understand the threat to our electoral system posed by cyber-infiltration and fake news. We have seen how divisive disputed elections can be in the United States. There is little doubt that the Russians had an extremely sophisticated operation, going back to 2014, to begin the process of manipulation, by using cyber-means to break into state boards of election, by backing people around Trump, by attacking Hillary Clinton and by understanding the Democrats’ strategy by stealing the information from their servers. That was not just a case of embarrassing the Clinton campaign; it was more sophisticated and far more malign.

Indeed, we have cyber-attacks and cyber-problems here. I should declare that I wrote a definition of Russian warfare for the Henry Jackson Society, which has about 440 brute force attacks on its website per month, many of them coming from Russian IP addresses. There are regular Russian attacks on Dr Andrew Foxall, its excellent Russia expert. We are seeing these attacks, probably from Russia, perhaps from other more sophisticated state actors, on think-tanks in the United Kingdom. As well as myself, the Henry Jackson Society has hosted, rather more importantly for Mr Putin, Bill Browder and the wonderful Marina Litvinenko. We should be wary of what the Russians and others are doing here and elsewhere. It is a global problem. In the new kind of political conflict we are facing from authoritarian states, hackers, assassins and trolls, as well as market manipulators and criminals, are perhaps more useful than conventional forms of warfare.

I will leave it there, Madam Deputy Speaker. I apologise if I have spoken for too long, but I would appreciate the Minister’s thoughts on both global Britain and some of those suggestions.

Oral Answers to Questions

Debate between Bob Seely and Tom Tugendhat
Thursday 24th May 2018

(5 years, 10 months ago)

Commons Chamber
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Bob Seely Portrait Mr Bob Seely (Isle of Wight) (Con)
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2. What steps he is taking to implement the digital railway strategy.

Tom Tugendhat Portrait Tom Tugendhat (Tonbridge and Malling) (Con)
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4. What steps he is taking to implement the digital railway strategy.

Chris Grayling Portrait The Secretary of State for Transport (Chris Grayling)
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Two weeks ago, Mark Carne, the chief executive of Network Rail, and I launched the company’s digital railway strategy in York, where we announced that the industry should make plans for all future renewals to be digital or digital-ready. I have already approved funding to develop digital schemes in Moorgate and the south-east, and in particular, I have set out plans for the new TransPennine route. The £2.9 billion modernisation, starting around this time next year, will be Britain’s first, principal inter-city digital railway, and very necessary it is.