Sanctions and Anti-Money Laundering Bill [Lords] — House of Commons, 2018-02-20
Topic: Macroeconomics
Andrew John Bower Mitchell (Conservative, Centre-right): It is early days, but I think the existing powers are being used rather less than my hon. Friend and I would wish, and I have read out a list of people who are sanctioned by other countries, but not sanctioned by the UK. That was my second point My final point relates to the much discussed issue of open registers and the overseas territories. The House will recall the actions of the coalition Government and Britain’s leadership at the G8 in tackling tax evasion and tax havens. I thought the hon. Member for Bishop Auckland was a touch too curmudgeonly in acknowledging the extent to which the coalition Government made real progress on those matters. The UK has introduced publicly accessible registers of people with significant control, abolished bearer or anonymous shares and introduced unexplained wealth orders, while the anti-bribery law was finally introduced by the coalition Government. Britain has a proud record of world leadership on this under a Conservative-led Government This is the fourth occasion on which I, along with my right hon. and hon. Friends—under the able, cross-party leadership of the right hon. Member for Barking (Dame Margaret Hodge)—have tried to coax the Government into visiting on the overseas territories the same level of openness and transparency as we have in this country. Let us be clear on the constitutional position, which the Government set out in 2012: "As a matter of constitutional law the UK Parliament has unlimited power to legislate for the Territories." The overseas territories themselves recognise that they gain hugely from their relationship with the United Kingdom The overseas territories have been resistant to this argument for three reasons. The first—let us call it the Dutch Antilles argument—is that if they have open registers, all the hot money will head off to other less law-abiding jurisdictions. Leaving aside the issue of whether any decent person should wish to handle hot money obtained through corruption or worse, the fact is that the international consensus is to bear down on such havens, and their footprint is narrowing. Indeed, havens that embrace such transparency will secure a business advantage precisely because their legitimate business will no longer be tainted by fears of the reverse. There is an understanding of this point in at least some of the overseas territories, which, if I may put it this way, camp on the prayer of St Augustine: "O Lord, make me chaste, but not yet." The second argument, which we must address head-on, is that the overseas territories’ private registers are already available to lawmakers and regulators such as the Inland Revenue. The territories proudly say that they can turn around inquiries from HMRC within hours. This is commendable, but it completely misses the point. That fact is underlined by the recent release of information by journalists, which the hon. Member for Bishop Auckland mentioned. Registers must be open—to civil society, the media, journalists, non-governmental organisations—if all the relevant dots are to be joined up, as the release of the Paradise papers so clearly shows. With the best will in the world, the regulatory authorities are not in that business, and narrow questions from regulatory authorities simply do not suffice Finally, I come to the point made movingly by the Foreign Secretary that many, although not all, overseas territories suffered an existential calamity from the recent hurricanes. The whole House will share his concern. I am sure the whole House can assist by agreeing, in any amendment, a longer but definitive period of time in which this reform in the overseas territories should take place Around the world, the UK is looked to and respected for its leadership on international development. Helping the poorest in often far-flung places is written deep into this country’s DNA. It is who we are as a Parliament. The appalling but temporary crisis afflicting Oxfam will not change that. We have an obligation, not least to our own taxpayers, to champion transparency and openness, and to have zero tolerance towards corruption. The highly respected Africa Progress Panel has shown that in the Democratic Republic of the Congo more than £1.5 billion of stolen funds and taxes have disappeared. These are funds stolen from some of the poorest people on the planet, who by contrast live in one of the richest mineral and resource-endowed countries in the world. As the World Bank has made clear, the money stolen from the people of Africa through unpaid taxes or concealment dwarfs all the foreign direct investment and international development money that flows into Africa each year. Much of that money ends up salted away in the tax havens I have described. We owe it to the poor of Africa, as well as to our own taxpayers, to take the action we can to bring about an end to this scandal I urge the Government, on this fourth occasion, to look very seriously at the amendment that will undoubtedly be tabled by the right hon. Member for Barking (Dame Margaret Hodge) on Report, if not before. Four times we have been around this track. There is significant support on both sides of the House for that amendment. I urge those on the Treasury Bench to look very seriously at whether they can accommodate the House of Commons on this point.