Economic Crime: Law Enforcement

Jess Phillips Excerpts

Thursday 7th July 2022 Commons Chamber

[Jess Phillips (Birmingham, Yardley) (Lab)]

It is a pleasure to be here. I would not normally be in this debate, but what has happened with the National Security Bill Committee, statutory instruments and various other things leaves me here. I say firmly that I have learned a huge amount while sitting in this debate. First, I thank my right hon. Friend the Member for Barking (Dame Margaret Hodge), a dear friend, for securing this important debate, along with the hon. Member for Thirsk and Malton (Kevin Hollinrake). I am glad that he took on some of the technicalities about cryptocurrency. My husband sometimes talks to me about that, but I cannot say I am particularly across it. I say that to highlight a problem, which has been raised by the hon. Member for Weston-super-Mare (John Penrose): we in this legislature, and in our law enforcement, are grossly behind, acting in an analogue form in a digital world. The writing has been on the wall in that regard for some time, and I fear that we have not kept pace at all.

I could not agree more with what the hon. Member for Thirsk and Malton said about Action Fraud. I believe it was the hon. Member for Glasgow Central (Alison Thewliss) who called it inAction Fraud, which is a considerably better way to describe it. What surprised me most was what the hon. Gentleman said about banks that everybody in this country trusts being fined so much money for laundering the money of Mexican drug cartels, among many other things. He spoke for the nation when he expressed disgust about there being no criminal charges laid against banks. The public would be absolutely appalled to hear that, especially given how ready our agencies are to chase up our constituents if they fall foul of something, as many Members have pointed out. His solutions were good and well thought through, and I am an absolute fan of a preventive duty, as the Minister may well know. I think we have to act to put preventive duties in place to address those who are considering turning a blind eye and taking the fines because they have big pockets. We need to firmly place this in their wheelhouse.

My right hon. Friend the Member for Barking will be so missed by this House when an election comes—that could be in the next 25 minutes—because she has been a giant in the fight against dirty money. She said that there can be no prosperity for our country based on dirty money, and that call should be taken incredibly seriously. When she tells stories such as the one about the situation in Lebanon, we cannot sit back and act as though the receipts into our nation result in some sort of prosperity that gives us a reason to turn a blind eye. I, as a British citizen, along with every British citizen in my constituency, do not want my country being used as a place to hive off the interests of people who make barrel bombs for Russia and Syria to try to kill people—people who then have to flee to my constituency. I never want to hear a story like that again. Anyone who thinks that our prosperity should rely on such activity ought to know that it harms our nation, so we must act.

My right hon. Friend reminded us about the heinous run of murders and suspicious deaths that are linked to dirty money. This is not just about receipts, especially where Russia is concerned. It is chilling that Russian killers have been able to kill at will in the United Kingdom because of a reliance on dirty Russian money, and she highlighted some of the cases. Just this morning, we had to have an urgent question in this House because, at the height of one of those murders—the poisoning in Salisbury—our then Foreign Secretary and now Prime Minister met Alexander Lebedev without officials and without putting anything on a public record. These are dangerous instances; we are lying down in the face of what is, as my right hon. Friend highlights, not just dirty money, but murder and deceit.

My right hon. Friend reminded us that enforcement is abysmal. I can assure her that she is not alone in calling it abysmal. Enforcement in relation to all crime in this country is utterly abysmal. It is no surprise to me that economic crime is falling foul of the same dreadful regime—of falling charges, falling convictions and failing cases. In the face of this, the NCA faces cuts of 20%, so my right hon. Friend’s concerns about the agency’s ability are not about to get any better. Both the hon. Member for Thirsk and Malton and my right hon. Friend compelled us to take seriously the recommendations of both all-party groups, and the Opposition absolutely will.

The hon. Member for Cheadle (Mary Robinson) spoke about the importance of whistleblowers. I totally agree with that, especially when we hear about whistleblowers dying mysteriously. It is no small thing to step forward about crime, but when we are talking about organised crime, the highest level of protection is undoubtedly needed. My hon. Friend and neighbour, the right hon. Member for Birmingham, Hodge Hill (Liam Byrne), made an impassioned plea. He said that we in the UK should be leading the world on ending this corruption; instead, we have advertised ourselves to Russia as a safe haven, and much more must be done.

The Government’s economic crime Bill is long overdue. For far too long, our country, and particularly our capital, has been a hotspot for dirty money. The Bill does not need to be overdue, from what I have heard in this Chamber today. All the amendments and recommendations are out there. They have come from the Justice Committee, as highlighted by the hon. Member for Bromley and Chislehurst (Sir Robert Neill); from the all-party groups for whistleblowing and on fair business banking; from the Foreign Affairs Committee; and from the Treasury Committee. Good work has been done, so why is the economic crime Bill so overdue? The illegal war in Ukraine and Russia’s aggression have brought that into sharp focus, but let us be very clear that it should not have come to this.

The National Crime Agency said in 2020 that there was a “realistic possibility” that money laundering alone in the UK amounted to hundreds of billions of pounds annually. The first economic crime Bill was delayed for years, with the Government blocking Labour amendments that have reformed Companies House and left Russian oligarchs with fewer places to hide. The hon. Member for Glasgow Central highlighted very clearly what is going wrong in Companies House.

Meanwhile, economic crime continues to rage across this country. Fraud now accounts for more than 40% of all crime, as we have heard, yet less than 1% of police resources goes to tackling it. Millions of people are scammed every year, but, as with so many other crimes, nothing is done. Only one in 1,000 fraud offences is prosecuted, and the Serious Fraud Office secured only two convictions in 2020-21—just two! That is one more than the number of Government prosecutions for child trafficking, because that was just one. Enforcement across the board is down on every form of harmful crime.

Has the Minister ever tried to refer a crime of fraud? Many Members have talked about their constituents and, in fact, themselves. I can tell him that I have tried to refer such a crime. There was literally a person using my name and my details to book a hotel—I knew it was happening because, when they were checking into the hotel, it appeared on my Google calendar. I know that they checked in because I did the sleuthing. But when I tried to report it, I might as well—I will not swear Madam Deputy Speaker—not have bothered. I was able to ring that hotel, find out that somebody had checked in—they were literally in the hotel when this was happening—and yet nothing was done. I am a Member of Parliament. Imagine what it is like for somebody who is not a Member of Parliament. I got absolutely nowhere.

The hon. Members for Strangford (Jim Shannon) and for Bromley and Chislehurst both mentioned the fraud strategy. Where is it? We are waiting for it from the Home Secretary. I am afraid to say that, when it comes to fraud, the Government and the Home Office have been missing in action.

I know that it has been a stressful day for the Minister. His entire Government have collapsed around him. He is one of the few Ministers left standing and one of the few Ministers who has not had to cancel parliamentary business today, but, despite all of that, I shall not let him off the hook. I hope that he will take this opportunity today to answer a number of important questions, many of which the Opposition have been asking for many months. Will the second economic crime Bill, promised in the Queen’s Speech, be introduced before the recess, or will it meet the same fate as so many others? Will this Bill, like the Victims Bill, be promised in multiple Queen’s Speeches before we even see it in draft form? Will the Home Office finally bring forward a fraud strategy—a promise that the Minister, although possibly not this particular Minister, made months ago? Or, again, will this be another broken promise?

Will the Home Office finally axe Action Fraud, which anyone who has fallen victim to fraud, will know is a completely failing service? If it does, will the Minister update the House on what steps are being taken to replace it and whether the replacement will be something that actually functions? Given the National Crime Agency’s hugely important role in tackling fraud, will the Minister rule out the 20% staff cut that the Government have reportedly asked the NCA to make?