Responding to illicit and emerging finance

Foreign Affairs Committee Closed Inquiry
Opened: 1 Feb 2022 Closed: 26 Oct 2022 Parliament page
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 … Read more
11 Recommendations
6 Conclusions
1 Report
1 Oral session
1 Event
Activity timeline 3 events
26 Oct
2022
Report published
18 Oct
2022
Oral evidence
30 Jun
2022
Report published
Oral evidence sessions 1 session
18 Oct 2022
View on parliament.uk
Foreign Affairs Committee
Adam M Smith · Gibson, Dunn and Crutcher LLP Maria Nizzero · RUSI Oliver Windridge · The Sentry
Recommendations & Conclusions
17 results
1 Conclusion
Second report - The cost of compla…
The Committee underlines the imperative of implementing beneficial ownership rules and robust reform of Companies...
The Committee underlines the imperative of implementing beneficial ownership rules and robust reform of Companies House, including new powers for the company registrar to verify information to ensure accuracy as well as discretionary powers to remove corporate entities from the … Read more
Foreign, Commonwealth & Development Office
View details
2 Recommendation
Second report - The cost of compla…
We recommend that the FCDO ensures there must be timely and effective implementation of the...
We recommend that the FCDO ensures there must be timely and effective implementation of the Companies House register of overseas entities that own UK property.
Foreign, Commonwealth & Development Office
View details
3 Conclusion
Second report - The cost of compla…
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.
Foreign, Commonwealth & Development Office
View details
4 Conclusion
Second report - The cost of compla…
The Government’s unwillingness to bring forward legislation to stem the flow of dirty money is...
The Government’s unwillingness to bring forward legislation to stem the flow of dirty money is likely to have contributed to the belief in Russia that the UK is a safe haven for corrupt wealth. It is shameful that it has … Read more
Foreign, Commonwealth & Development Office
View details
5 Recommendation
Second report - The cost of compla…
The Government cannot afford to rely on rhetoric if it is to deliver on its...
The Government cannot afford to rely on rhetoric if it is to deliver on its commitment to tackle illicit finance. Without the necessary means and resources, enforcement agencies are toothless. If the UK is to protect its reputation as a … Read more
Foreign, Commonwealth & Development Office
View details
6 Recommendation
Second report - The cost of compla…
The Government should publish its long-awaited review of the Tier 1 Investor visa scheme without...
The Government should publish its long-awaited review of the Tier 1 Investor visa scheme without delay. It should also explain: whether it intends to review Investor visas issued since 2015; what action it will take in relation to those who … Read more
Foreign, Commonwealth & Development Office
View details
7 Recommendation
Second report - The cost of compla…
Greater public access to information about beneficial ownership would improve private sector compliance with sanctions,...
Greater public access to information about beneficial ownership would improve private sector compliance with sanctions, pre-empt sanctions evasion and improve transparency about designated individuals. If the Government and Overseas Territories had achieved this by December 2020, as originally expected, these … Read more
Foreign, Commonwealth & Development Office
View details
8 Conclusion
Second report - The cost of compla…
We welcome the consultation on SLAPPs, to which we have submitted a memorandum.
We welcome the consultation on SLAPPs, to which we have submitted a memorandum. We will return in our further report to ways in which the FCDO can work in concert with other departments to curb professional enablers who wittingly or … Read more
Foreign, Commonwealth & Development Office
View details
9 Recommendation
Second report - The cost of compla…
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 … Read more
Foreign, Commonwealth & Development Office
View details
10 Recommendation
Second report - The cost of compla…
The vectors of illicit finance are often companies.
The vectors of illicit finance are often companies. Therefore, the FCDO should work across Government to encourage reform of outdated and ineffective corporate criminal liability laws which mean that it is difficult to hold large companies to account for economic … Read more
Foreign, Commonwealth & Development Office
View details
11 Recommendation
Second report - The cost of compla…
We are concerned the Government’s recent rhetoric about action on “dirty” Russian money implies that...
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 … Read more
Foreign, Commonwealth & Development Office
View details
12 Recommendation
Second report - The cost of compla…
The primary reason for early ineffective action on sanctions was inadequate preparation and foresight by...
The primary reason for early ineffective action on sanctions was inadequate preparation and foresight by the leadership of the FCDO and consequent understaffing within the sanctions unit. The skillset of staff within the sanctions unit and the coordination between departments … Read more
Foreign, Commonwealth & Development Office
View details
13 Recommendation
Second report - The cost of compla…
The Government has an obligation to help guide institutions through the sudden gear change in...
The Government has an obligation to help guide institutions through the sudden gear change in policy, not least because it has introduced strict liability for breaches. We endorse the Treasury Committee’s call for clear guidance for the private sector. (Paragraph … Read more
Foreign, Commonwealth & Development Office
View details
14 Recommendation
Second report - The cost of compla…
Given the impressive coordination with the EU and US on sanctioning individuals and entities in...
Given the impressive coordination with the EU and US on sanctioning individuals and entities in relation to the war in Ukraine, we urge the Government to build on this initiative and to develop a comprehensive transatlantic partnership to curb kleptocracy. … Read more
Foreign, Commonwealth & Development Office
View details
15 Recommendation
Second report - The cost of compla…
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 … Read more
Foreign, Commonwealth & Development Office
View details
16 Conclusion
Second report - The cost of compla…
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, … Read more
Foreign, Commonwealth & Development Office
View details
17 Conclusion
Second report - The cost of compla…
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 … Read more
Foreign, Commonwealth & Development Office
View details