Select committee: Foreign Affairs Committee
Recommendation 11
Second report - The cost of complacency: illicit finance and the war in Ukraine
Published 30 Jun 2022
Paragraph 27
Addressed to Foreign, Commonwealth & Development Office
Foreign Affairs Committee Responding to illicit and emerging finance All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Recommendation (the committee's words)
We are concerned the Government’s recent rhetoric about action on “dirty” Russian money implies that the current raft of sanctions is a part solution to the UK’s problem of kleptocratic wealth. We welcome the issuance of sanctions, which have frozen the assets of a growing number of oligarchs for supporting, or receiving benefit from, the Russian Government. But this should not become a form of “criminal justice light” where assets are held indefinitely without subsequent prosecution, nor should it become a form of expropriation without due process. We recommend that the relevant law enforcement agencies now take advantage of the time these asset freezes provide to consider if there is a criminal case for asset seizure.
From: Foreign Affairs Committee, Second report - The cost of complacency: illicit finance and the war in Ukraine (HC 168), paragraph 27, 30 June 2022
Government response
The government responded to the whole report on 26 October 2022.
Summary written by Accountability Index from the government's response. It is not the government's own words.The government says it is "not complacent about the threat" and, while it agrees with the Committee on several recommendations, it "notes" many others and rejects the Committee's call for public beneficial ownership registers in the Overseas Territories by early 2023.
- On Companies House reform, it "agrees with the Committee's conclusion" and says the reforms, including identity verification and broader Registrar powers, will be legislated for in the upcoming Economic Crime and Corporate Transparency Bill.
- On Overseas Territories and Crown Dependencies, it "does not accept" that work on public registers is delayed and expects them "by the end of 2023"; bringing the deadline forward to early 2023 "would not be achievable".
- On funding for law enforcement, it "notes this conclusion" and points to a package of "circa £400 million" to tackle economic crime over three years.
- On the Tier 1 Investor visa review, it "notes this recommendation", says the review "is being finalised" and that its aim is to publish it "in the near future".