To ask His Majesty’s Government whether they will strengthen existing policy, resources and enforcement powers to ensure the prosecution of those in the United Kingdom who have enriched themselves through the corrupt use of public funds in low-and-middle-income countries.
My Lords, the Government remain committed to reducing the harms of illicit finance on developing countries and to holding those responsible to account. The National Crime Agency’s international corruption unit and international anti-corruption co-ordination centre provide critical assistance to help developing countries trace and recover stolen assets and pursue justice via the UK courts. The Government plan to publish a new anti-corruption strategy, which will set out ambitious actions and reforms in this area.
My Lords, I welcome the Government’s focus on this critical issue. The Minister will be aware of the particular role of the illicit gold trade in fuelling the conflict in Sudan and conflicts elsewhere, and in laundering the proceeds of corruption around the globe. Will the Government, therefore, use their forthcoming illicit finance summit to designate additional sanctions packages against corrupt elites, such as those members of the Zimbabwe gold mafia, who have not yet been sanctioned, and their professional enablers, who launder proceeds from the illicit gold trade through the UK and through the United Arab Emirates?
As he knows, we do not comment on future designations, but I thank him for reminding us of the role of illicit gold mining, in particular, in this. This is how many billions of dollars are hidden. It is also associated with horrendous abuses of people and all kinds of illicit activities, including criminal activity across borders. I thank him also for reminding the House of our plans to hold a summit next year, and I look forward to his full engagement in that.
My Lords, first, I apologise that my interest overran courtesy. Following the speaker’s question, there is already a plan for measures to deal with corruption on an international scale, which, I am sure my noble friend will agree, totally undermines both democracy and our overseas aid. That is the international anti-corruption court. Can the Minister tell us what progress there is on that project?
I suspect that my noble friend Lord Hain is about to ask something along these lines, so I came prepared. The Government are committed to ensuring that those responsible for the most egregious acts of international corruption are prosecuted for their crimes. We are supportive of the ambition to strengthen international mechanisms to hold kleptocrats to account, but are realistic about the geopolitical challenges associated with the proposal for an international anti-corruption court at this time. However, we look forward to considering the draft treaty of the court, which is due later this year.
My Lords, I refer the Minister to what is going on in France, where they use their universal jurisdiction rules to investigate and seize the French assets of corrupt African dictators. She will be aware of the case of Teodoro Obiang, who has had his 10 supercars impounded and his €60 million house frozen in a court order. There are other cases in the pipeline, including those of the former President of Gabon and the President of Congo-Brazzaville. Why can we not use similar tactics to the French?
We have had a great deal of success in seizing assets and returning them to those Governments. I remind the House that most people in positions of leadership across Africa are not corrupt and are working incredibly hard for the benefit of their populations. I know the noble Lord agrees with that. We returned millions of pounds recently to Nigeria, where that money has been reinvested into public services for the benefit of those people. That is the work that we will continue to do.
My Lords, over 20 years, I saw how development was being undermined by corruption in too many low-income countries. What will the Government do through the international anti-corruption unit to ensure that funds that are being laundered through British administrations are prosecuted, with the funds seized and returned to the people who need them, rather than disappearing into the morass of illegal looting?
We are working through the unit, but, importantly, we are also working on prevention. We have a great deal of work taking place, alongside the African Development Bank, to strengthen systems in-country so that countries are able to take measures themselves to deal with this and prevent these kinds of practices, which, as the noble Lord said, so badly disadvantage countries that really need to keep that money in-country so they can spend it well for the benefit of their people.
My Lords, the Minister mentioned a treaty, already in draft, drawn up by international jurists from right across the world. Can she confirm that the former Foreign Secretary’s support for the principle of an international anti-corruption court remains the policy of the Foreign Office? In receiving this draft treaty, will she also bear in mind that not only should that court be supported by this Government but we have a particular responsibility, because a lot of these laundered funds come through London and then on to UK overseas territories, such as the British Virgin Islands, where they are concealed in shell companies. That has got to stop, and Britain should be taking a lead on it.
It is not my job to speak for the Deputy Prime Minister, but our resolve on this remains unchanged and is shared by the newly appointed Foreign Secretary. My noble friend is right to raise the issue of the overseas territories. My colleague, Minister Doughty, recently met the overseas territories. There is progress. We have transparency measures, and fully transparent interest registers are available with Gibraltar, St Helena and, I think, Montserrat as well. There is more to do. Other OTs are taking steps in the right direction, but we want to see them go much further. We have taken the significant step, which I think my noble friend will appreciate, of sending the noble Baroness, Lady Hodge, to meet BVI to try to encourage it to do what we would like it to do because, as my noble friend says, this is so important in our international fight against illicit finance.
My Lords, strengthening existing powers is, of course, welcome, but we already have £25 billion in frozen Russian assets, £13 billion in frozen Libyan assets and £5 billion in frozen cryptocurrency. When are the Government going to take action to put these funds to good use to help our allies in Ukraine, and with the crypto to help our own citizens?
Of course, the noble Earl is right, and nobody would like to see that money released and able to be spent in Ukraine more than me. We have to act within the law as it currently stands and as his Government left it last year. We do not have the power, as he knows, to seize those assets in a way that is straightforward, but we will work through the courts and with our neighbours and allies, across Europe specifically, to make sure that the people who caused the damage in Ukraine are held to account and that, whenever possible, they are the people who end up paying for it.
My Lords, have His Majesty’s Government made any representations to the United States Administration about their decision not to pursue people who are involved in these corrupt practices in both directions, from developing countries into the United States and from the United States into developing countries? Are we making representations and are we sure that the Trump Administration will not do as they did over emissions by ships and torpedo an agreement that is reached by everyone else?