§ 10. Mr. Andrew Mackinlay (Thurrock)If he will review the regulations governing the access available to foreign Governments and overseas law enforcement agencies to information about, and retrieval of, funds illicitly obtained abroad which are deposited or invested in United Kingdom financial institutions and companies.[135958]
§ The Economic Secretary to the Treasury (Miss Melanie Johnson)I am grateful to my hon. Friend for raising this important issue.
433 Well established provisions are already in place to enable foreign Governments and law enforcement agencies to access information, and also to retrieve the proceeds of crime that enter the UK financial system. However, we continue to keep such matters under review. The Government are committed, when parliamentary time permits, to tabling legislation to implement many of the issues raised by the recent performance and innovation unit report "Recovering the Proceeds of Crime", published this June.
§ Mr. MackinlayWhat the Minister says seems to ignore extensive press reports that show the frustration and irritation of the Nigerian Government, who are trying to trace and relocate moneys laundered and deposited in London by the former dictator Sani Abacha. Is it not clear that there is a problem in the application of the rules that do exist, and does not the specific case of Sani Abacha demonstrate that there is a deficiency in our rules and regulations?
We go round the world dishing out views about transparency and the need to resist money laundering. Should we not put our own house in order?
§ Miss JohnsonThe financial action task force has commended the UK's system, stating that
the United Kingdom anti-money laundering system is an impressive and comprehensive one, which has been subject to consistent review and improvement, which meets the FATF forty Recommendations and indeed in many areas goes beyond them…The active system of supervision, co-operation, education and training in the financial sector are complemented by strong and effective penal legislation.Notwithstanding that, I understand the issues that my hon. Friend has raised. It is difficult for me to comment on investigations when we have received requests for co-operation, but I can tell the hon. Gentleman that the Financial Services and Markets Act 2000 makes more provision for us to deal with such issues. It makes financial crime objectives statutory, and gives the Financial Services Authority a greater enforcement role. It also gives the FSA specific rule-making powers with regard to money laundering.As I said, when parliamentary time permits, the Government wish to pursue the policy set out in the PIU report, which looks at further reform of the money laundering laws, improved arrangements for the seizure of suspect property, including cash, a new national confiscation agency, and enhanced international co-operation.
§ Mr. Ian Bruce (South Dorset)Given all the rules and regulations that the United Kingdom financial services industry has to keep to, can the Minister confirm that there is a level playing field for offshore so-called tax havens? People in those areas are concerned because they believe that money laundering often happens in New York or London, yet they get the blame for it, and people are trying to impose different rules on them, which do not apply to London.
§ Miss JohnsonWe have made it clear in all the international settings in which such matters are discussed that it is crucial that everybody be on the same level playing field, that we should adopt the rules we advocate, that transparency and the exchange of information are very important, and that we must apply to ourselves the 434 same rules that we wish others to apply to themselves. That is what we have argued in all the international arenas in which such topics crop up, and I believe that we have made good progress on all those points.