Asked by: Margaret Hodge (Labour - Barking)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what safeguarding mechanisms he is putting in place to ensure that the general legal licence does not allow legal fees to be paid by sanctioned bodies or individuals for the purpose of bringing forward Strategic Lawsuits Against Public Participation.
Answered by James Cartlidge - Minister of State (Ministry of Defence)
HM Treasury is considering its approach to licensing to see if any changes are required to the Office of Financial Sanctions Implementation’s (OFSI) licensing practice in relation to legal fees licence applications. We need to carefully balance the right to legal representation - which is a fundamental one - with wider issues of public policy. There are legal constraints on OFSI's ability to grant and refuse licences - the specific purposes are set out in the Russia sanctions regulations for which the Foreign Commonwealth and Development Office is responsible.
The General Licence relating to legal fees is due to expire on 27 April 2023. Before General Licences are renewed or permitted to expire, the permissions are reassessed by HM Treasury to ensure that they remain appropriate.
The Government remains committed to introducing targeted anti-SLAPP legislation to stop this misuse of our legal system. Reforms will include a statutory definition of SLAPPs, an early dismissal mechanism, and costs protection for SLAPPs cases (via secondary legislation). The Ministry of Justice intend to legislate as soon as parliamentary time allows.
Asked by: Margaret Hodge (Labour - Barking)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether protocols have been agreed with (a) his Department, (b) the Secretary of State for Business, Energy and Industrial Strategy, (c) the British Business Bank and (d) commercial lenders on taking steps to pursue fraud in the Government's covid-19 loan schemes.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The Government has always been clear that fraud within the Covid-19 loan schemes is unacceptable and that those who have defrauded the government may be subject to both criminal and commercial recovery efforts. We are taking action against those who defrauded the Schemes by working across Government, law enforcement, counter-fraud agencies, and commercial lenders.
Scheme rules, as well as subsequent guidance based on continued engagement with lenders, spell out lenders’ obligations in this regard. Under the Schemes there was a range of checks to minimise fraud upfront, and lenders continue to work closely with government agencies to identify and pursue fraud within the scheme, minimising losses to the taxpayer as far as possible. The BBB's audit programme evaluates the effectiveness of a range of lender processes and procedures. Where issues are identified the BBB can take remedial action with the lender.
As announced in the Spring Statement 2022, the Government is funding this continued counter-fraud action – with £13mn allocated to the National Investigation Service to double their investigative capacity on Bounce Back Loans and fund enforcement activity building on the Cabinet Office data analytics programme, as well as £11mn to the British Business Bank to boost their counter fraud and assurance programme.
Asked by: Margaret Hodge (Labour - Barking)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will require HMRC to make Common Reporting Standard data available to independent academic researchers in a suitably anonymised format.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
Common Reporting Standard data is available to HMRC in an aggregated, anonymised format. However, there is a limit to what can be shared beyond HMRC as the data is provided by other countries under international legal agreements which contain strict rules about onward disclosure of information and must be respected.
Asked by: Margaret Hodge (Labour - Barking)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether HMRC made Common Reporting Standard data available to analysts within HMRC’s Knowledge Analysis and Intelligence division.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
Common Reporting Standard data has been made available to analysts in Knowledge Analysis and Intelligence.Asked by: Margaret Hodge (Labour - Barking)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps HMRC has taken to use Common Reporting Standard data to assess the extent of offshore tax evasion by UK residents.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
The Common Reporting Standard (CRS) provides HMRC with critical information, which is playing a major role in tackling offshore tax non-compliance, including evasion.
When CRS data is received, HMRC systematically compare it to customer information and tax records, to establish whether UK taxpayers have properly reported their overseas income and determine the appropriate response.
HMRC plans to calculate and publish a new stand-alone offshore tax gap, which estimates the amount of offshore tax not being correctly reported by UK taxpayers next year, for the ‘Measuring tax gaps 2023 edition’.
Asked by: Margaret Hodge (Labour - Barking)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if his Department will publish the call for evidence on the UK’s anti-money laundering and counter terrorist financing regulatory and supervisory regime by the 26 June 2022 deadline as set out in the Money Laundering Regulations.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
HM Treasury issued a Call for Evidence in July 2021 to inform a review of the UK’s Anti-Money Laundering and Countering the Financing of Terrorism regime. This review will be published before the 26 June 2022 deadline as part of HM Treasury’s legal obligations under the Money Laundering Regulations 2017.Asked by: Margaret Hodge (Labour - Barking)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what the total value of assets frozen under the UK's Russian sanctions regime is since Russia's renewed invasion of Ukraine on 24 February 2022.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
Relevant firms are legally obliged to report to the Office of Financial Sanctions Implementation (OFSI) if they hold frozen assets of a designated person or entity they suspect to be on the list of asset freeze targets. OFSI is currently receiving a high volume of reporting about assets being frozen relating to sanctions imposed since Russia's invasion of Ukraine. This information is being collated and assured. Fuller details will be released in due course and will mark a substantial increase on previous assets reported as frozen under Russia sanctions.
Asked by: Margaret Hodge (Labour - Barking)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many licences OFSI has issued for legal fees in FY2022 as of 28 February 2022.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
OFSI has issued 22 licences to permit the payment of reasonable legal fees in this period. All licence applications are carefully assessed against the criteria set out in the relevant Regulations.
Asked by: Margaret Hodge (Labour - Barking)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many law firms have reported having designated persons as their clients under the Russian Sanctions Regulations.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
When individuals or firms from any sector report frozen funds or dealing with a designated person to OFSI, OFSI takes appropriate action depending on the report. Where there may be financial sanctions compliance concerns we investigate accordingly. We cannot publicise information about specific reports, or reports based on specific sectors/financial sanctions regimes, as this could prejudice ongoing investigations.
Asked by: Margaret Hodge (Labour - Barking)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many applications for licences relating to legal fees OFSI has received for the Russia Sanctions Regulations.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
OFSI has received 2 applications for new licences under the Russia regulations that would allow for the payment of reasonable legal fees in the financial year 2021-22, up to and including 28 February.