UK and Gibraltar Prosecuting Authorities

Keith Vaz Excerpts

Wednesday 3rd December 2014 Westminster Hall

[Robert Neill]

Sadly, my hon. Friend is right. I have seen some of the coverage in the Spanish press. It is gratuitous. Unfortunately, the comments, whatever the intention in making them, have been used to fuel the antagonism that some in the Spanish governing party and other parts of the media feel towards Gibraltar. It is worth saying that, precisely because Gibraltar is a small country with a difficult neighbour, an insult to Gibraltar is felt very personally, even by everyday Gibraltarians. It is not just a matter of Government circles; Gibraltarians feel this individually because every one of them sees the consequence of what happens when misleading information is used against them by their neighbours. For that reason, this debate is important, and it is worth setting out why.

The remarks made by the right hon. Member for Leicester East were in the context of a comment about drugs policy and money laundering. I am grateful to the right hon. Gentleman for having shown me a letter that he subsequently sent to the Chief Minister, who raised his concerns with the right hon. Gentleman, and I place that on the record. However, the reality is this: the inevitable innuendo in the comments made was that there was a particular issue with Gibraltar and drugs money and money laundering. That is wholly unjustified and untrue, and it is unsupported by any evidence of any kind. In every jurisdiction, we all have to be alert to the issues arising from organised crime, drugs and money laundering. The UK is, and so is Gibraltar, to exactly the same standards as the United Kingdom.

It is worth setting out in some detail, as briefly as I may, the work that Gibraltar has done in this field.

[Keith Vaz (Leicester East) (Lab)]

I am grateful to the hon. Gentleman for giving way and for informing me that he was going to raise these comments. This debate seems to be all about the five words that I spoke in the Chamber. As he knows, I wrote to the Chief Minister and I accepted his assurances that Gibraltar’s financial services were absolutely robust. I pointed out that in my speech I made it very clear that there was no criticism of the people or Government of Gibraltar. If he is now reassuring me again in the House that there is no question of any impropriety of any kind, of course we accept that assurance.

[Robert Neill]

I am very grateful to the right hon. Gentleman for making those comments. More important, I hope the people of Gibraltar will be grateful, because unfortunately, once words are said, even perhaps in an uncharacteristically loose manner, much harm is done in this particular context. I not only want to put that on record in the House, but I know that my hon. and learned Friend the Solicitor-General will be able to state the position of the British Government in relation to those matters.

I think the position is this: unfortunately, the comments that the right hon. Gentleman referred to were made on the Floor of the Chamber of this House. They were recorded in Hansard and I am grateful to him for coming along today and withdrawing those comments, again, on the Floor of this House, sitting in Westminster Hall, and on the record in Hansard. That is hugely important to the people of Gibraltar and I am grateful to him for having done that.

Let me set out why that retraction is so important. Gibraltar, throughout recent times, has been fully compliant with all its international obligations. All relevant EU regulations that apply to Gibraltar and all EU directives are transposed into law by Gibraltar’s Parliament. That includes all EU measures on financial supervision and regulation, direct taxation and the fight against money laundering.

Gibraltar has been actively engaged with the OECD on exchange of information arrangements. The OECD and Council of Europe convention on mutual administrative assistance in tax matters has been extended to Gibraltar, and in consequence of a raft of measures, Gibraltar has now, pursuant to various agreements and the convention, exchange of information agreements to the OECD standard with some 77 countries and territories around the world. It has received a glowing review from the OECD on its record of exchange of information. Its overall compliance ratings are in exactly the same league as this country’s and Germany’s. I hope that gives a proper sense of perspective as to the seriousness with which Gibraltar takes these issues.

[Robert Neill]

The right hon. Gentleman is absolutely right. Independent monitoring reports state specifically that there have been no instances of failure by Gibraltar to co-operate with any requests by any member organisation. He is totally on the money as far as that is concerned. Gibraltar behaves to exactly the same standards as the United Kingdom. We should be proud of it and congratulate it on that.

It is worth pointing out that Gibraltar has signed the Foreign Account Tax Compliance Act intergovernmental agreement with the UK and the United States on a commitment to common reporting standards and automatic exchange of information. That now extends to 50 countries, with a further 30 in the process of joining it. Gibraltar has applied the EU savings directive since 2005. Its regulatory law enforcement and intelligence authorities, as my hon. Friend the hon. Member for Beckenham (Bob Stewart) pointed out, work hand in glove with the United Kingdom and other international counterparts in the detection and prevention of crime. Despite the tensions across the border, the Royal Gibraltar police work effectively and well with their counterparts in the Guardia Civil, notwithstanding political interference from time to time from Madrid, and they should be commended for that.

Gibraltar has draconian all-crimes anti-money laundering legislation, systems and administrative practices in place, all of which comply with EU legislation and operate in exactly the same way as in the UK. Its systems have been tested with independent reviews by the Financial Action Task Force, the International Monetary Fund and others, and have been found to comply, not just in theory, but in practice. The Financial Action Task Force recently revised its 40 anti-money laundering principles and Gibraltar is taking those on board and updating its arrangements in the fight against crime in the same way as the United Kingdom. In other words, it meets exactly the same standards in every regard.

[Keith Vaz]

The hon. Gentleman is giving the Chamber a robust account of the prosecution system. Can he confirm that there have been no prosecutions for money laundering in Gibraltar?

[Robert Neill]

That is my understanding, but my hon. and learned Friend the Solicitor-General will be able to deal specifically with that. The fact that we have been successful in such matters is precisely because of the very good arrangements and regulatory systems in place in Gibraltar. It is totally right that we should be alert to the risk of crime, but when good preventative mechanisms are in place and prevent crimes from coming to fruition that is a plus point and we should congratulate Gibraltar on that.

--- Later in debate ---

[The Solicitor-General]

That is a fair way of putting it. As my hon. Friend the Member for Bromley and Chislehurst has said, we will be entering into the justice and home affairs measures on 1 December, and Gibraltar has taken swift action to do likewise—to follow in lockstep with the UK. Those extra safeguards and means of mutual co-operation strengthen the ties that bind us.

I am sure that my hon. Friend will understand that it would not be appropriate for me to give specific examples because of the international expectation that MLA requests remain confidential. However, I can talk about some notable recent successes of the CPS, such as the securing of two convictions against individuals for fraudulently obtaining moneys from a vulnerable elderly relative. Assistance from Gibraltar helped to secure that conviction, and there was lawyer-to-lawyer contact to progress the case. I would like to mention some other examples of ongoing casework, ranging from organised crime—specifically drug trafficking—to fraud and identity theft. CPS lawyers have reported receiving exceptional assistance from Gibraltar, including a response to a request that was issued at very short notice following a change in position from the defence. In another case, a letter of request was sent to obtain banking evidence, and there were no problems with obtaining the material from Gibraltar.

[Keith Vaz]

That is very useful information, particularly in respect of the inquiries being undertaken by the Home Affairs Committee. Is the Solicitor-General telling the Chamber that there are no examples of people being prosecuted for money laundering in Gibraltar, either relating to drugs money—that is the main interest of the Select Committee—or otherwise?

[The Solicitor-General]

We are not aware of any prosecutions, but I will look into the matter further to give the right hon. Gentleman cast-iron information. I will write to him, if I may, on that point. I am grateful to him for helping to reinforce the consensus that exists in the House about the good criminal prosecution and investigation work that goes on in Gibraltar.