International Anti-corruption Court

Question

Asked by

To ask His Majesty’s Government what progress they have made in considering whether to establish an international anti-corruption court.

My Lords, we look forward to considering the draft treaty, which is expected next year, for the proposed international anti-corruption court. This Government fully support the objective of holding kleptocrats to account, but the idea of an IACC carries challenges and requires detailed consideration. Meanwhile, we will use all our tools to deliver an ambitious government-wide agenda to tackle the devastating impacts of corruption and illicit finance, both at home and overseas.

My Lords, I thank my noble friend for confirming the Government’s support for an international anti-corruption court. As he has indicated, international experts from countries north and south, right across the world, now have an agreed draft treaty and will soon begin consulting with interested parties. So far, these include Botswana, Canada, France, the Gambia, Kenya, Mozambique, the Netherlands, Nigeria, Norway, South Africa and Switzerland. Will Ministers ensure that the UK both participates officially in this treaty-drafting process and encourages more states to do so? Such a new court is vital to help combat global corruption, costing $2 trillion each and every year.

My Lords, as I said, we support the objectives of the proposed international anti-corruption court. We look forward to considering the draft treaty and will continue to engage in international discussions on this subject as they arise, and as we have done to date. As my noble friend said, these discussions should not detract from the work the Government are already delivering to hold kleptocrats to account. For example, the UK’s international corruption unit has a world-leading capability and has successfully investigated international bribery, corruption and related money-laundering offences within a UK nexus, resulting in prosecutions and the confiscation of stolen assets.

My Lords, does the Minister recall the problems that we have had with the ICC, for example, as some countries simply will not sign up to these international bodies? Some of the most corrupt countries in the world are not going to adhere to anything that such an international court would do. I broadly welcome the idea of such a court, but wonder whether, in reality, some of the worst offenders simply will not turn up.

The noble Lord makes a valid point. We are working collaboratively, as my noble friend said, with other countries to ensure that we can look at this in principle and then see how we can achieve it. My main point is that we should follow the money. We have actually been extremely successful: the unit I just talked about has been successful in ensuring that illicit funds are returned and that we sanction people. An important tool in our armour is that ability to ensure that people know that, when they try to get funds out of their country, we will follow it and return it.

My Lords, I welcome the Government’s recent announcements on anti-corruption, including the announcement that the noble Baroness, Lady Hodge, will be the Government’s anti-corruption champion. Is now not the opportunity for the UK to play a leading role in the drafting of a treaty, not simply to wait for it to be presented to us? If the UK is part of the drafting, we will have the best opportunity in a long time to address the very point that the noble Lord, Lord Swire, made: that never again will global corruption be channelled through London, the City of London, London lawyers or any part of the British establishment. That will be an opportunity if we help draft the treaty, rather than wait until it is presented to us.

There is a range of options here, and I have met Judge Wolf. A range of experts is looking into the draft treaty, and we have been talking to international countries. What we need to do, if we are to get this court off the ground, is ensure that all these countries are working together and supporting the treaty. I heard what the noble Lord said, but I come back to my fundamental point: I will not wait until an international court is established, which can take time and requires consensus. We are determined—and this is why the appointment of my noble friend Lady Hodge is so critical—to follow the money and make sure that people do not get away with corruption.

My Lords, the United Nations estimates that the cost of kleptocracy is something in the region of $40 billion per annum, much of which falls on the poorest countries in the world. When the international anti-corruption court was being mooted originally, the United Nations established the International Anti-Corruption Coordination Centre, which is intended to operate a joint working platform and intelligence sharing. As the Minister indicated, the centre, having become operational in 2017, is hosted by the United Kingdom’s National Crime Agency. Can he advise the House on how many cases the centre has dealt with in the last seven years? In addition to the United Kingdom, the United States, Canada, Australia, New Zealand and Singapore, how many countries participate in the work of the centre? What steps are the Government taking to promote participation in the work of the centre? He said that one follows the money for the purposes of jurisdiction, and the United Kingdom is of course a centre for such funds.

I very much welcome the noble and learned Lord’s comments and I look forward to working with him to ensure that we can achieve these objectives. Since July 2017, the IACCC has received 331 referrals of grand corruption from 40 different countries, has identified over £1.4 billion of assets suspected to be the proceeds of corruption, helped freeze £631 million of stolen assets, and supported the arrest of 48 suspects in grand corruption cases. We will work collaboratively with all the countries that the noble and learned Lord mentioned.

My Lords, I refer the Minister to remarks I cited, when we discussed this last, by the right honourable Gordon Brown, the former Prime Minister, who is a strong supporter of the international anti-corruption court. In pointing a finger at kleptocracy, he mentioned the Panama papers, the Pandora papers and Russian assets being used in the Channel Islands, the British Virgin Islands and UK dependent territories. In addition, he cited the need for this court to deal with the crime of aggression and the other offenses committed by Putin during the war in Ukraine. Can the Minister assure us that he will be used as one of our best advocates in the discussions which will take place on the formulation of the forthcoming treaty and making this court come about?

I welcome the noble Lord’s comments. I met Judge Wolf, who has proposed this for some time and has been campaigning for it. A range of international experts is looking at the proposed treaty, and they are doing very good work. We are committed to examining the outcome of that work and the development of a draft treaty as it proceeds. I emphasise to the noble Lord that we are not standing still and waiting for these institutions to be established. I have visited eight African countries, all of which faced corruption. One of the things that they have been incredibly pleased about is our ability to co-operate with and support them in ensuring that illicit funds not only are returned but do not get out of the country. We are absolutely determined to do that. With the appointment of my noble friend Lady Hodge, I know that we will push this up the global agenda, and we have a strong advocate in her in fighting this crime.

My Lords, following the remarks of the noble and learned Lord, Lord Keen of Elie, does my noble friend the Minister agree that corruption is of crucial importance to developing countries and that, once the court is in operation, our very much diminished aid budget will be very much more effective?

The noble Baroness is absolutely right. I stress that not only are we following the money, ensuring that we take action against those who commit this crime, but in recent times we have been supporting the African Beneficial Ownership Transparency Network. I addressed its first in-person conference. With the African Development Bank, we are working to ensure that people cannot hide what they own. Transparency is another important tool in ensuring that we combat illicit finance.