Consultation on reform of the law on corporate liability for money laundering and terrorist financing etc

Sanctions and Anti-Money Laundering Bill [Lords] – in a Public Bill Committee at 4:45 pm on 6 March 2018.

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“No later than six months from the date on which this Act is passed, the Secretary of State must arrange for the undertaking of a public consultation on the merits of reforming the law on corporate liability for money laundering, terrorist financing offences and those offences which pose a threat to the integrity of the international financial system.”—

This new clause calls for a public consultation on corporate liability for money laundering within six months.

Brought up, and read the First time.

Photo of Anneliese Dodds Anneliese Dodds Shadow Minister (Treasury)

I beg to move, That the clause be read a Second time.

It is good that we can continue proceedings, because there are many matters that we still need to consider, not least this new clause and the others on the selection list. I am grateful for the opportunity to do so.

New clause 17 requires a public consultation on corporate liability for money laundering within six months. We have already discussed what occurred with the Government’s evidence-gathering exercise—as I think they described it—in relation to a broader economic crime offence, and how the results of that exercise have been with the Government since last March. We still have no indication of how that will be dealt with, aside from the Economic Secretary’s helpful remark that it will be dealt with in due course. I know he always tries to be helpful, but I am afraid that that is not good enough for those of us who want to see change in this area.

We are specifically requesting a public consultation to get the process moving and to promote it, not least because of what the Government have committed to—or at least, what past Conservative leaders have committed to. In 2016, at the time of the anti-corruption summit, David Cameron wrote an article for The Guardian in which he claimed:

“In the UK, in addition to prosecuting companies that fail to prevent bribery and tax evasion”—

Debate interrupted (Programme Order, 27 February).

The Chair put forthwith the Question already proposed from the Chair (Standing Order No. 83D), That the clause be read a Second time.

The Committee divided:

Ayes 8, Noes 9.

Division number 21 Caledonian Pinewood Forest — Consultation on reform of the law on corporate liability for money laundering and terrorist financing etc

Aye: 8 MPs

No: 9 MPs

Aye: A-Z by last name

No: A-Z by last name

Question accordingly negatived.

Bill, as amended, reported (Standing Order No. 83D(6)).

Committee rose.

Written evidence reported to the House

SAMLB 05 The Law Society

SAMLB 06 Government of the British Virgin Islands

SAMLB 07 Professor Prem Sikka, Professor of Accounting and Finance, University of Sheffield

SAMLB 08 UK Finance

SAMLB 09 Solicitors Regulation Authority

SAMLB 10 International Financial Centres Forum