Serious Crime Bill [Lords] — House of Commons, 2015-02-23
Topic: Law and Crime
Stephen Paul Barclay (Conservative, Centre-right): I rise to speak to new clause 28, tabled in my name, which is much more modest than the new clause tabled by my hon. Friend the Member for Esher and Walton (Mr Raab). It is simply about giving law enforcement more time in respect of multimillion pound money laundering cases At present around 316,000 suspicious activity reports are filed each year with law enforcement agencies. Those are cases where the banks, the lawyers or the accountants have serious concerns around money laundering. According to the Home Office’s own figures, between £23 billion and £57 billion are being channelled through the UK economy each year, so we know the scale of money laundering is significant. At present, when a suspicious activity report is filed the law enforcement agencies—the National Crime Agency has now taken on this responsibility —have just seven days to say whether they give consent to those multimillion pound transfers going ahead. That is just seven days on a case that might well have been built over many years, often involving jurisdictions where information is difficult to obtain, and if law enforcement decides it does not wish to give consent to these transactions, which the financial institutions themselves have said look suspicious, they have just 31 days to build the case to the satisfaction of the courts. If they fail to do so, they risk the penalty of costs against them, which sets a strong disincentive to law enforcement to take those cases forward. To put that in context, the proceeds of crime unit investigated only 110 cases from the 316,000 suspicious activity reports filed with it, so clearly the system is not working I thought I would give just one case to bring this to life. The Nigerian case OPL 245 has a bit of a jargony name, but it involves $1 billion paid by a British oil company for some offshore land in Nigeria with oil assets. To put this in context, $1 billion was paid for this land for drilling—they do drill offshore, I should point out for the benefit of any Members who might be confused as to how they obtain the oil—yet 14 years earlier this land was granted to a company owned by the then Nigerian oil Minister. In essence the land was granted by the Nigerian oil Minister to a company that he owned and for which $1 billion was then paid 14 years later. In investigating that case that had developed over many years involving complex financial arrangements over different jurisdictions, law enforcement has just 31 days to build a case that would block the transfer of $1 billion that is going to a corrupt official and his henchmen. New clause 28 simply seeks to give law enforcement agencies more time to build their case. I shall not press it to a vote, but I hope that the Minister will tell us whether the Government believe that the current arrangements provide sufficient time, or whether they accept the substance of the new clause, which is that the current arrangements are insufficient and that they load the dice against law enforcement, meaning that corrupt assets can be transferred from the UK to criminals. If the Government accept my proposal, I hope that they will change the law at the earliest opportunity to create a more level playing field by giving more time for these complex, multi-jurisdictional cases to be investigated