HL Deb 15 October 1990 vol 522 cc578-9

2.47 p.m.

Lord Bruce of Donington asked Her Majesty's Government:

Whether they will report progress on their efforts, at home and internationally, to prevent and detect the widespread practice of money-laundering.

The Parliamentary Under-Secretary of State, Scottish Office (Lord Strathclyde)

My Lords, the Government continue to attach high priority to combating drugs money-laundering, and various initiatives are in train. Internationally, negotiations on the draft EC Money-Laundering Directive are progressing and the Financial Action Task Force is being reactivated. The United Kingdom has also concluded bilateral agreements or arrangements with 17 countries to trace, freeze and confiscate drug trafficking proceeds. At home, co-operation between financial institutions and the authorities is making available an increasing amount of useful information. We are currently reviewing legislation on the confiscation of drugs proceeds and money-laundering.

Lord Bruce of Donington

My Lords, I am grateful to the Minister for his reply. But is it not the case that the measures being taken within the European Community will take quite a long time to fructify, leaving aside obtaining agreement on them? Mid-1991 was named as the date upon which some kind of agreement would be arrived at. Is the noble Lord aware that the 23-nation Council of Europe has already drawn up a convention due to be signed or become effective on 8th November which provides for very wide powers, including the inspection of bank records and so on, and for criminal offences? Would not the Government be well advised to explore that matter further with the Council of Europe, which has the additional advantage of including many Eastern states among its members?

Lord Strathclyde

My Lords, the noble Lord is quite right. The Council of Europe convention is important. It may well be open for signature at the meeting of Ministers of the Pompidou Group on 8th and 9th November. We are hoping to sign on that occasion should that prove to be the case.

Lord Cledwyn of Penrhos

My Lords, the Question refers to an extremely complex crime. Can the Minister say what resources the Government make available to the police authority to deal with it? Can he further tell the House how many qualified accountants, such as chartered accountants, are employed by the authority?

Lord Strathclyde

My Lords, I cannot answer the noble Lord the Leader of the Opposition specifically, but I can say that the Government appreciate that adequate resources are essential for effective enforcement. Staffing in this area has been increased over recent years, but this is not only a matter of staff numbers. Professionalism of enforcement officers, the use of modern technology and the use of intelligence are all essential in the fight against this dreadful crime. If the noble Lord requires further information on the exact numbers I shall have to write to him.

Lord Cledwyn of Penrhos

My Lords, I realise that intelligence is necessary but cannot the noble Lord tell the House whether any chartered accountants are employed to deal with such crimes?

Lord Strathclyde

My Lords, I assume that, since the enforcement officers are dealing with banks and accountants, they themselves would need to be well qualified.

Lord Bruce of Donington

My Lords, will the noble Lord undertake to provide, as soon as possible, the information requested by my noble friend? In the meantime, while welcoming the Government's intention of signing the convention, which I take it the noble Lord has confirmed today, can the noble Lord say when the whole matter will be brought before Parliament for ratification? If it is ratified, what is the point of pursuing matters further through the somewhat tortuous process of going through the Council of Ministers?

Lord Strathclyde

My Lords, of course I shall reply in greater detail to the noble Lord the Leader of the Opposition. As regards ratification, we are, of course, considering the convention in detail to ascertain whether or not any of its provisions will require amendments to primary legislation. If, as we think at the moment, that is not required, we hope to proceed to early ratification.