Economic Crime

Compliments Margaret Hodge's work on the Finance Bill and highlights the importance of considering foreign economies, specifically mentioning the recommendations from the Russia report dealing with financial instruments.

Congratulates Margaret Hodge but emphasises that money laundering is not exclusively a Russian issue; mentions paramilitary groups in Northern Ireland and argues for UK-wide information sharing to combat the problem.

Supports Companies House reform, citing an example where criminals took over her constituent's dormant company. Suggests LinkedIn’s false information undermines efforts against economic crime and calls for more robust actions from Companies House.

Compliments the debate and argues that given Britain's role in the global economy, it must set a higher standard than international norms to effectively combat economic crime.

Supports Margaret Hodge's motion and warns against downgrading criminal liability for corporate failure to prevent economic crime, citing the example of NatWest facing a £340 million fine for inadequate money laundering monitoring.

Reiterates concerns about London housing market distortion due to overseas property ownership, highlighting its negative impact on constituents' well-being in terms of homelessness and overcrowding.

Raises concern over the disparity between the scale of fraud-related crime and police resources allocated to it, citing a statistic that fraud accounts for 1% of police resources despite being one-third of all reported crimes.

Discussed the urgency of bringing forward legislation to address economic crime, highlighting its impact on human trafficking, money laundering, and public funds expropriation. Emphasised the importance of transparency in Companies House and proposed a register of overseas entities. Advocated for a 'failure to prevent' offence to deter corporate criminal liability.

The Member for East Ham highlighted the menace of online scams targeting pensioners, emphasising the need to address this issue in the Online Safety Bill. He cited a recent inquiry by the Work and Pensions Committee which found that Google had failed to take down a scam site despite being informed about it months earlier. Timms argued that the current version of the Bill does not adequately tackle paid-for scam adverts, which is the major part of the problem. He called for legislation requiring a duty to protect users from financial harms and corporate criminal liability for failure to prevent scams. The Member also stressed the importance of acting urgently on this issue to avoid catastrophic consequences for individuals and the UK economy.

Mr. Fell thanked the Members who initiated the debate and highlighted his background in fraud and financial crime prevention. He emphasised the importance of collaboration between industry, government, and law enforcement to tackle organised crime effectively. He stated that current efforts are inadequate without substantial governmental action and enforcement. Mr. Fell described a scenario where an organised crime group was involved in various criminal activities such as trafficking, low-level scams against vulnerable people, financial marketing on the dark web, drug imports, and property market manipulation. He called for measures like economic crime prevention orders to deter fraudsters and improved information sharing to combat these issues. Additionally, he advocated for stronger action against enablers of fraud and inclusion of fraud in the online harms Bill.

The debate is crucial and timely, noting the Treasury Committee's evidence indicating inadequate efforts against economic crime. She supports an offence of a failure to prevent economic crime, connecting it with the upcoming online safety Bill as a golden opportunity for tackling such issues. The speaker criticises the current lack of enforcement and highlights Companies House reform inadequacies, citing instances where companies are formed without proper verification or oversight. She also mentions the use of Facebook in facilitating fraudulent company directorship recruitment and the shift to Northern Irish limited partnerships due to Scottish limited partnership reforms. Alison emphasises the need for urgent action on these issues before they worsen, linking financial crime directly to political influence and democracy's integrity.

Paid tribute to the right hon. Member for Barking and the hon. Member for Thirsk and Malton for their work on economic fairness issues. Emphasised the importance of addressing money laundering, citing the impact of dirty Russian money laundered in the UK. Highlighted the issue that only 1% of police enforcement time is spent tackling economic crime despite it accounting for one third of all crimes in the UK. Discussed the need to tackle online fraud and cited Google's failure to take down a scam as an example of regulatory shortcomings. Raised concerns about property market overinflation, linking it to economic crime and its impact on housing affordability. Questioned the government's urgency in addressing these issues, noting past debates and unfulfilled commitments.

Calls for stronger action to combat money laundering and fraud, citing the importance of regulating the UK's financial sector responsibly. Emphasises the need to strengthen the online harms Bill and implement reforms at Companies House. Criticises the Government's lack of urgency in addressing these issues, highlighting examples like the Registration of Overseas Entities Bill. Also raises concerns about corporate responsibility and regulatory standards for cryptocurrencies.

Acknowledges the importance of addressing economic crime, including fraud, corruption, tax evasion, and money laundering. Emphasises the Government's commitment to building a framework that deters such crimes while protecting the dynamism of the UK’s business environment. Highlights existing measures like public registers of beneficial owners, reforms in money laundering, and the establishment of the National Economic Crime Centre. Also mentions forthcoming legislative actions including an economic crime levy and plans for further transparency measures regarding overseas companies owning property in the UK.

Intervened to highlight the importance of whistleblower regulations, noting that whistleblowers are crucial for identifying fraud. Argues for focusing on improving whistleblower legislation to match other countries.

Expressed concerns about the underutilisation of unexplained wealth orders and highlighted issues related to resource constraints in enforcement agencies which hinder effective use of such measures.

Called for the Online Safety Bill to be widened to include online fraud, highlighting the importance of addressing this issue within legislative frameworks.

Expressed gratitude towards other Members for their contributions and emphasised the importance of transparency in tackling economic crime. She highlighted that developing countries lose three times as much through tax avoidance and corruption compared to what they gain from international aid. She also acknowledged the support of various MPs, including those who spoke about paid-for advertising in the online harms Bill and the need to strengthen regulations against tax evasion and economic crimes.