30/11/21

UK: MPs secure debate on Economic Crime Bill in House of Commons.

As published on thenational.scot, Tuesday 30 November, 2021.

TWO committees of MPs have secured a debate in the House of Commons on prioritising an Economic Crime Bill in the current parliamentary session.

The All-Party Parliamentary Groups (APPGs) on Fair Business Banking and Anti-Corruption and Responsible Tax have secured a debate on Thursday.

They said that in the wake of the Pandora Papers and with the UK shaping its post-Brexit regulatory framework, the Government should have the ambition to have the most transparent financial sector in the world.

Labour MP Dame Margaret Hodge and Tory member Kevin Hollinrake united with more than 40 other cross-party members to call for the UK Government to include the Economic Crime Bill in this parliamentary term, saying that it would boost national security as well as improving Britain’s reputation globally.

Tackling economic crime effectively is more important than ever, they said, with the most recent Pandora Papers leak showing there was inadequate transparency, regulation and resources to enforce existing laws or tackle the issues highlighted in the leak.

The MPs said the UK has a chance to regain its place as a world leader in tackling illicit finance by building a transparent and fair financial system with robust, enforceable penalties.

They said the Law Commission was consulting on make the failure to prevent economic crime a criminal offence, but although legislation has been ready and waiting for three years, it had yet to be prioritised.

Hodge, who chairs the APPG on Anti-Corruption and Responsible Tax, said: “Economic crime through the UK harms our global reputation, damages our tax receipts, and endangers our national security – the Integrated Review of defence highlighted the continuing risk to Britain’s security and reputation from illicit finance. And now the recent Pandora Papers leak has once more placed Britain and our offshore tax havens right at the heart of the world’s dirty money crisis.

“The Government must grab this opportunity and urgently table legislation that will stop the abuse of UK property and companies for the purposes of economic crime. Transparency is vital as sunlight is the best disinfectant.”

Hollinrake, co-chair of the APPG on Fair Business Banking, added: “For years now small business has been mistreated and exploited as banks stand by and watch.

“Making the failure to prevent economic crime a criminal offence is the wake-up call many financial institutions need to change company culture and build a fairer financial services sector that the UK can be proud of.”