Select Committee · Foreign Affairs Committee

Responding to illicit and emerging finance

Status: Closed Opened: 1 Feb 2022 Closed: 26 Oct 2022 11 recommendations 6 conclusions 1 report

This inquiry will look at how effectively the UK is responding to the challenge of illicit finance flows across borders, building on the predecessor Committee’s report “Moscow’s Gold”. It will also explore the impact that emerging forms of finance could have on the international norms and rules that govern the global financial system. This inquiry … Show more

Clear

Reports

1 report
Title HC No. Published Items Response
Second report - The cost of complacency: illicit finance a… HC 168 30 Jun 2022 17 Responded

Recommendations & Conclusions

5 items
3 Conclusion Second report - The cost of complacency… Acknowledged

Recent changes to the Economic Crime (Transparency and Enforcement) Act 2022 seek to make it...

Recent changes to the Economic Crime (Transparency and Enforcement) Act 2022 seek to make it easier to apply for UWOs, but a law is only as effective as its enforcement.

Government response AI summary
The Government notes the conclusion and states UWOs are one of several tools to investigate and recover proceeds of crime. Reports on the use of UWO powers will be publicly available, and the Home Office will draft and lay an annual report in Parliament covering …
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Foreign, Commonwealth & Development Office
9 Recommendation Second report - The cost of complacency… Acknowledged

Journalists, however, are not the only truth-tellers who need protection.

Journalists, however, are not the only truth-tellers who need protection. They often rely on whistle-blowers inside companies and organisations. These whistle-blowers need protection. The FCDO should therefore push for a Whistleblowing Bill to offer protection to those who speak out against, or uncover, economic crimes and other wrongdoing. Read more

Government response AI summary
The government agrees that an effective whistleblowing framework is important and has committed to a review of the whistleblowing framework, and is considering the scope and timing of this review.
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Foreign, Commonwealth & Development Office
15 Recommendation Second report - The cost of complacency… Acknowledged

The FCDO has vast experience, through the merger with DFID, of running illicit finance programmes...

The FCDO has vast experience, through the merger with DFID, of running illicit finance programmes internationally and gathering critical intelligence to assess security risks. The FCDO should be present at the table in international fora on illicit finance, such as the Financial Action Task Force. Appointing a Minister for Economic … Read more

Government response AI summary
The government acknowledges the importance of addressing economic crime and security, stating that there is effective governance of these efforts and that they will continue to review and strengthen governance arrangements. They state that HM Treasury leads the UK delegation to the FATF, drawing on …
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Foreign, Commonwealth & Development Office
16 Conclusion Second report - The cost of complacency… Acknowledged

We will continue to monitor the Government’s progress on the next Economic Crime Plan, the...

We will continue to monitor the Government’s progress on the next Economic Crime Plan, the Economic Crime Bill 2 and Companies House reform. We will look at how effectively the UK continues to maintain pressure on Russia through sanctions and, more critically, how the Government enforces its sanctions so that … Read more

Government response AI summary
The government notes that the Committee will continue to monitor progress on the Economic Crime Plan, Economic Crime Bill 2, and Companies House reform, as well as the effectiveness of sanctions against Russia.
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Foreign, Commonwealth & Development Office
17 Conclusion Second report - The cost of complacency… Acknowledged

It is deeply regrettable that it has needed a war for the Government to make...

It is deeply regrettable that it has needed a war for the Government to make progress on long-promised plans to tackle the flows of illicit finance through London and beyond. While sanctions remain in place, freezing the corrupt wealth of President Putin’s supporters, now is the time to take action: … Read more

Government response AI summary
The Government notes these conclusions and states that it has taken robust action over the last decade and will not tolerate the Kremlin’s business model of stealing in Russia to then spend and save in the West, including the UK.
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Foreign, Commonwealth & Development Office

Oral evidence sessions

1 session
Date Witnesses
18 Oct 2022 Adam M Smith · Gibson, Dunn and Crutcher LLP, Maria Nizzero · RUSI, Oliver Windridge · The Sentry View ↗

Who gave evidence

3 witnesses
WitnessOrganisationSessions
Adam M Smith · Partner Gibson, Dunn and Crutcher LLP 1
Maria Nizzero · Research Fellow, Centre for Financial Crime and S… RUSI 1
Oliver Windridge · Senior Advisor The Sentry 1