Economic Crime (Transparency and Enforcement) Bill

Chris Bryant Excerpts

2nd reading
Monday 7th March 2022 Commons Chamber

[Priti Patel]

At this stage, I am outlining the measures in the Bill. We have a Committee stage coming up, and we are considering all the details, because we absolutely must get this right and ensure that all the measures will be effective.

Overseas entities will be required to verify information regarding beneficial owners and managing officers before making an application for registering, or updating or amending information held on the register. That is very important, because the current system is out of date. We need to be able to keep the information fresh and agile, and ensure that the right checks and balances are constantly applied. They will have to provide evidence to underpin that verification, and Companies House will be able to query all information under the broader powers we will create in the second Bill. If a foreign company does not comply with the new obligations, or if it submits false filings, its managing officers can face criminal sanctions or civil sanctions. Criminal penalties in England and Wales could, depending on the offence committed, be a prison sentence of up to five years, or a fine. We are also introducing a mechanism by which financial penalties can be enforced without the need for criminal prosecution. More importantly, overseas companies will be restricted in their ability to sell or lease their land if they do not comply with the requirements.

[Chris Bryant (Rhondda) (Lab)]

I am grateful to the Home Secretary for giving way. This is naughty of me, as I have been in the Foreign Affairs Committee and I have not heard all that she has said. Would she acknowledge that clause 31 seems to set a very high bar by saying that it is an offence to give false information only if someone does so “knowingly or recklessly”? I apologise again for arriving late.

[Priti Patel]

The hon. Gentleman has clearly been occupied elsewhere, and we did cover this point earlier on.

--- Later in debate ---

[Yvette Cooper]

My hon. Friend makes an important point. Unless we have the ability to use the powers we have and the powers we are discussing in this Bill, in practice nothing will happen. We know that there is considerably more investment in taking some of these measures in the United States, for example. There are also issues with enforcement resources for the National Crime Agency.

[Chris Bryant]

The enforcement issue is really important. For instance, following the invasion and annexation of Crimea, we made it a criminal offence to support tourism activities in Crimea. However, Quintessentially, which is run by Ben Elliot, has been providing restaurant recommendations in Crimea to Russian oligarchs. Surely he should be investigated and everybody should be distancing themselves from him now.

[Yvette Cooper]

I must say that the information my hon. Friend provides is deeply disturbing. There is a huge responsibility on us all, and particularly on the Government, to ensure that there is no conflict of interest in the source of any political donations to the party or any role in the party, and that there is a proper distancing from the appalling activities of corrupt Russian elites.