Phil Brickell
MP for Bolton West · Labour · United Kingdom
“The Prime Minister will not need reminding about Arsenal’s success in the premier league last season and my right hon. Friend the Member for Makerfield (Andy Burnham) will not want reminding that Everton, unfortunately for him, came 13th, but what neither of them might know is that the UK finished 20th in the corruption perceptions index,…”
“Westhoughton is home to a fantastic local veterans charity called the Darren Deady Foundation. Darren bravely served in the Duke of Lancaster’s Regiment, but, sadly, died following injuries he sustained on the frontline in Afghanistan. I had the privilege of visiting the foundation back in April.”
“I thank the Minister for her statement and I pay tribute to Philip Rycroft, who, as I am sure colleagues across the House will agree, is an exceptional public servant.”
“Member for Clacton (Nigel Farage), what assurances can the Minister provide to me that the measures the Government are introducing will prevent people—such as George Cottrell, convicted in the US of wire fraud, who we know has provided thousands of pounds-worth of benefits; or Ben Delo, who has been convicted for flouting American anti-mo…”
“Questions have also emerged about his lobbying the Bank of England for crypto-friendly policies, having himself invested £215,000 into bitcoin company Stack BTC, alongside former Conservative Chancellor Kwasi Kwarteng.”
“I declare an interest as the chair of the all-party parliamentary group on anti-corruption and responsible tax. This week, the hon. Member for Clacton (Nigel Farage) declared that he is earning an extraordinary £22,500 per hour working for a gold bullion dealer.”
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“I have to say that I was therefore appalled to see a former British Member of the European Parliament charged and recently sentenced to 10 and a half years in prison for offences under the Bribery Act 2010.”
“As the Security Minister, he has worked closely with the Government’s anti-corruption champion, the noble Baroness Hodge, and with staff at the Home Office’s joint anti-corruption unit. Together, they have done excellent work in completing the anti-corruption strategy. I wish to focus my speech on foreign interference in our politics and elections, and how it goes to the heart of our much-cherished democracy. First, let me talk about paid access by foreign actors. Today, the greatest threats to our security do not always come in the form of tanks or missiles. Increasingly, they come through money, influence and covert networks operating quietly inside our financial system and even our politics. Before coming to this place, I dedicated my professional life to tackling corruption.”
“I congratulate the hon. Member for Lewes (James MacCleary) on securing this important debate. At a time when our country faces profound geopolitical uncertainty, when hostile states are probing every weakness in our democratic and economic systems, and when the US national security strategy talks about “cultivating resistance to Europe’s current trajectory within European nations”, one truth stands out above all others: as the Government’s anti-corruption strategy published earlier this week recognises, Britain’s security is the foundation of Britain’s prosperity. Before I progress any further, may I take this opportunity to commend the leadership of my hon. Friend the Member for Barnsley North (Dan Jarvis)?”
“I thank the Leader of the House for his warm remarks about my campaign to exempt search and rescue services vehicles from vehicle excise duty. Will the Leader of the House join me in celebrating this coming weekend’s 25th anniversary of the passage of the Countryside and Rights of Way Act 2000, which was a landmark achievement by the last Labour Government in opening up the countryside for all to enjoy? Can we have a statement from an Environment, Food and Rural Affairs Minister about what further measures the Government are taking to ensure that there is a uniform, responsible right of access on land and on water across England?”
“I urge her to continue in the same vein by reforming reliefs, strengthening enforcement and sending a message that Britain no longer tolerates tax gimmicks—whether involving snails, shell companies, or slimy advisers.”
“This is not just a quirky anecdote; it is a hard-edged example of how loopholes in our system are being exploited, made all the easier by the Tories’ decision in the last Parliament to abolish the Office of Tax Simplification. Indeed, the very same council is reporting losses of £10 million a year due to non-payment of business rates. I welcome the further steps announced by the Chancellor yesterday, such as rewards for informants of high-value tax fraud, extra funding for trading standards, enhancing tax transparency on real estate, 350 new criminal investigators to tackle fraud and illicit tobacco and vapes, and a boost to HMRC to go after tax dodgers and their unscrupulous advisers. We need to do a lot more, but I commend the Chancellor.”
“The scheme, perfected over many years to prevent the snails from eating one another and stop mass snail fornication, allows unscrupulous individuals to claim that empty warehouses are being used for agricultural purposes. In turn, landlords are granted a business rates exemption. If the firms in question are challenged by the local council, they are simply liquidated. They hold no assets, so no business rates can be claimed back, and they magically reappear under the guise of another mollusc-based enterprise registered at Companies House—it is taking shell companies to the extreme. One local council has reported a loss of £370,000 in tax receipts just because of this specific mollusc-based wheeze.”
“That is despite the platitudes from Lib Dem Members saying that banks are not being asked to pay more, when actually they are. I will bring the issue of tax dodging on our high streets to life with an example of just how egregious some of these wheezes truly are. In the brief time that I have, let me talk a little about the world of snails—snail fornication, snail gestation, snail feed and snail cannibalism. London Centric’s Jim Waterson recently published an investigative report on this topic. It details how former Lancashire shoe salesman, Terry Ball, runs elaborate snail-based tax avoidance schemes that are costing councils millions of pounds simply by placing boxes of snails in vacant office buildings in an attempt to exempt them from business rates.”
“I thank the Chancellor for heeding my calls by introducing new measures to tackle high street tax dodging and organised crime. The National Crime Agency estimates that some £12 billion in criminal cash is generated in the UK every year, including in the suspicious vape shops we have all clocked while walking round our constituencies. Those suspect enterprises not only erode the civic pride we have in our high streets, but undercut genuine businesses looking to provide a service and make ends meet. I welcome the Chancellor’s commitment to a cross-Government taskforce to tackle tax abuse and money laundering on our high streets, backed by £50 million every year over the next three years, which is funded by an increase in the economic crime levy paid for by the banks and other professional services firms.”
“She has rejected the failed trickle-down instincts of the populist right, which bequeathed this Government with a legacy of failed austerity and profligate wasting of taxpayers’ money on dodgy PPE contracts during the pandemic. She has also dismissed unevidenced calls from the left-wing populists for a wealth tax, when it has no answers to the hard questions about capital flight, offshore assets or our overburdened enforcement agencies. All the while, she has increased the burden on those with the broadest shoulders, including via the new high-value council tax surcharge on homes valued at more than £2 million, ensuring that homeowners in mansions are not paying less in council tax than someone living in a mid-terrace in Blackrod.”
“I warmly welcome the Chancellor’s Budget. It will improve the lives of my constituents by putting £150 back into the pockets of working people through removing levies on energy bills and by lifting 2,570 children out of poverty. This is a Budget with fairness at its core; it reduces child poverty, has more funding for the NHS and has more investment in school libraries. After the chaos of the 2022 Truss mini-Budget, the Chancellor has shown what real fiscal discipline looks like: inflation falling, growth prioritised and proper headroom restored. I am particularly pleased that the Chancellor has stared down the sloganeers at both extremes.”
“The Hong Kong community in Bolton West placed their trust in the UK. We must honour that trust with integrity, by ensuring that the promise we made is the promise we keep.”
“My constituents have concerns about the proposed changes, especially, as we have already heard today, about the raising of the English language requirement from B1 to B2 level and—quite understandably—the introduction of an earnings threshold of £12,570 for three to five years. With the political situation in Hong Kong deteriorating, uncertainty here in the UK only adds to the pressure that families already feel. I will press the Minister on three points. First, will he definitively rule out any retrospective changes to the BNO settlement pathway? Secondly, will he recognise BNO holders as a distinct group, who have deep historical ties to the UK? Thirdly, will he offer transitional arrangements for those forced to come here via alternate routes due to the political pressures they faced in Hong Kong?”
“The proposed requirements in the Home Office’s immigration White Paper could fall hardest on the most vulnerable: home-makers, who are often women caring for children or elderly relatives, and students who came under the original terms but could be disadvantaged. The BNO route was never intended to filter visa applicants by income, qualification or employment. It was designed as a safe, fair and non-discriminatory avenue for people seeking stability and safety—nothing more. The Hong Kong community in Bolton has more than fulfilled their end of the bargain. They have paid the full immigration health surcharge, moved at their own expense and contributed through work, volunteering and entrepreneurship.”
“I welcome the Government’s commitment to retaining the five-year route to settlement via the BNO via. That is the right course of action and I am pleased that the Government have heeded my concerns and those of many hon. Members in this House. I fully back the Government’s determination to reduce irregular and unlawful migration. But the BNO scheme is not a standard immigration pathway. It was created in response to a political crisis in Hong Kong, reflecting our historical responsibilities and moral obligations. Families in Bolton took life-changing decisions in good faith, leaving jobs, uprooting their children and starting again, based on the rules as they were. Altering any rules now would be retrospective and, frankly, could undermine trust.”
“It is a pleasure to serve under your chairship, Sir Edward, and I am grateful to my hon. Friend the Member for Rushcliffe (James Naish) for securing this important debate. Let me say at the outset that I will focus my remarks on the Hong Kong community in my Bolton West constituency. In Westhoughton, Lostock and across Bolton, Hongkongers have enriched our schools and supported local businesses, and they continue to make a meaningful contribution to local life. I pay particular tribute to my constituent Po, who is a fantastic champion in the community. She has done tremendous work not only to assist Hongkongers in my constituency but to speak with folk across Westhoughton and further afield about her experience and that of others who had to flee persecution and the crackdown on human rights in Hong Kong.”
“I commend the Minister for saying clearly, and quite rightly, that we should not be taking lessons from the Conservative party. What more can he say about the reforms that will follow the establishment of the Ethics and Integrity Commission to ensure that former Ministers cannot trade on their knowledge through the revolving door and—with the scrapping of the Advisory Committee on Business Appointments, which had been derided as a toothless regulator—that there are far stronger safeguards on former Ministers taking up jobs in the private sector.”
“The hon. Member is making a very good point. Does he agree that, notwithstanding the large drainage basins of rivers such as the Mersey, the Dee, the Kent and the Lune, which have systemic flood risk, there is also the issue of serious localised flooding across the region, which is often not tied to major drainage basins but connected to sewerage or groundwater?”
“As my constituency neighbour, does my hon. Friend share the frustration that I and my Bolton West constituents sometimes have about identifying who is responsible for the existing infrastructure and its maintenance? For example, we struggle to understand whether United Utilities or the council is responsible for localised flooding by Old Station Park and on Chorley New Road in Horwich, or on Lostock Junction Lane, and the source of the flooding.”
“T9. The Home Secretary will be aware of the existing asset recovery incentivisation scheme, which uses seized criminal assets to fund enforcement agencies in their work to tackle economic crime. There are, however, concerns about the lumpy nature of the funding model, which can lead to wild variations in financial support year on year for the likes of the Crown Prosecution Service, local police forces and the Serious Fraud Office. Will the Minister therefore meet me to discuss the merits of introducing a ringfenced, multi-year funding pot for law enforcement agencies tackling economic crime?”
“I was recently contacted by a constituent about Greater Manchester integrated care partnership funding an autism assessment for his son. After waiting eight months, my constituent was informed that his chosen provider’s funding had been cut by the ICP. With his GP’s help, he was able to transfer to a different provider, whose funding has also been cut, and his application is now on hold, with no timetable for a resolution. Given the current NHS waiting times for autism assessment, can we have a debate in Government time on the steps being taken to ensure that children get the reviews they need?”
“As London Centric recently reported, these practices are often enabled by opaque corporate structures in offshore jurisdictions.”
“Transparency International UK has identified over £11 billion in suspicious wealth invested in British property, more than half of which was routed through shell companies in our overseas territories. Behind those faceless firms are the likes of Bangladeshi businessman Shafiat Sobhan, Pakistani tycoon Malik Riaz Hussain and Azerbaijani banker Jahangir Hajiyev—individuals accused or convicted of grand corruption who saw London as the safest place to stash their gains. That money even floods our high streets. If we walk down any high street in the UK, we will see a proliferation of vape shops, candy shops, Harry Potter shops and barber shops. Not all of them have unscrupulous owners, but some are used as fronts for money laundering and tax abuse.”
“It harms His Majesty’s Revenue and Customs’ ability to collect what is owed, it fuels unfairness in our system and it leaves less for our stretched public services. There are too many cases to list, but I will endeavour to go over some, such as brothers Michael and Stephen Hirst, who evaded over £3.2 million in tax by routeing profits through companies they secretly controlled into Gibraltar and the British Virgin Islands. But it goes deeper than that. Illicit money flowing through opaque companies registered in our overseas territories does not stay offshore; it finds its way into our UK property market. That distorts it, according to the National Crime Agency, and hinders people’s attempts to get on to the housing ladder.”
“Sustainable economic growth and good-quality public services require the tax that is owed to be collected, whether it is from a small business in Westhoughton in my constituency or from oligarchs who have decided to make London their home—nobody should be above the law. The Chancellor has already made good progress on closing the £44 billion tax gap by hiring 5,500 new compliance staff, incentivising whistleblowers and committing to a 20% increase in the number of tax fraudsters charged each year. Those are all noble endeavours, and I applaud them, but financial secrecy continues to erode our tax base, because when money that should be taxed is hidden offshore, it is the honest British taxpayer who ends up footing the bill.”
“In 2017 came the Paradise papers, with another 13.4 million documents from firms, including from Bermuda, the BVI and the Cayman Islands, then the 2020 FinCEN files, followed by the 2021 Pandora papers. Each leak tells a story about unfairness, about how those who can afford to find ways to avoid paying their fair share can do so, and about how the world’s crooks and kleptocrats cleaned and stashed their dirty cash. Each leak exposed the role played by the UK’s own overseas territories in enabling assets to be hidden. So what is the impact on UK communities? I will focus on three areas where there is a direct, tangible impact on the UK: first, inhibiting growth; secondly, threatening national security; and thirdly, damaging our standing in the world.”
“In 2016, 11.5 million documents detailing financial and attorney-client information relating to 214,488 offshore entities were leaked—the now-infamous Panama papers. More than half the shell companies exposed in that leak from Panamanian offshore law firm Mossack Fonseca were set up in the British Virgin Islands. That leak revealed the sheer scale of the dark economy, which allows the rich and powerful to store their assets offshore, out of sight of the taxman, law enforcement or the press. From the likes of the former Georgian Prime Minister Bidzina Ivanishvili to the more than 30 Mossack Fonseca clients blacklisted by the US Treasury, roughly $2 trillion passed through that firm.”
“Financial secrecy in our overseas territories has real-world consequences for my constituents, businesses and Britain’s standing in the world. Journalists including Nicholas Shaxson and Oliver Bullough have outlined how the UK’s overseas territories have systematically undermined the global economy by creating a shadow banking system—“Moneyland”, to use Oliver Bullough’s parlance. In a number of our overseas territories, low levels of taxation and substandard levels of transparency have attracted the world’s crooks and kleptocrats like moths to a flame. Money laundering, fraud, bribery, tax evasion: regrettably, many of the scandals we read about are likely to involve a financial structure in the British overseas territories. It is an enduring embarrassment going back many, many years, and it undermines our global reputation.”
“Some have shown a real commitment to transparency, which I commend them for, and others have a zealous determination to work with the Foreign, Commonwealth and Development Office to drive through much-needed reforms, but are hampered by a lack of local expertise. But other overseas territories seem insistent on blocking change at every opportunity, and it is those that I wish to focus on. Hon. Members might ask, “What connects the sun-kissed beaches of the British Virgin Islands with the rain-soaked streets of Bolton?” What do my constituents care about shell companies, trusts and the veil of financial secrecy that a number of our overseas territories seem quietly content to provide? The purpose of today’s debate is to challenge the notion that what goes on over there has few ramifications for our daily lives over here.”
“I beg to move, That this House has considered the impact of financial secrecy in the Overseas Territories on UK communities. It is a pleasure to serve under your chairmanship, Mr Twigg. Before being elected to this place, I dedicated almost 15 years of my working life to tackling financial crime at two major UK banks. That work took me across the globe to the USA, the United Arab Emirates and often to India, so I like to think I can speak with some authority about financial secrecy overseas and how it impacts us at home. For a number of people watching this debate, the contents of my speech will make for uncomfortable viewing, so let me be clear from the outset that my objective is not to criticise the overseas territories writ large—far from it.”
“They enable cheaper due diligence for firms and cleaner supply chains for investors, they protect small businesses by making procurement fairer and fraud harder, they strengthen our economy by rooting out corruption before it takes hold, and they give the British people confidence that when they pay their taxes, buy a home or open a small shop on the high street, the system is fair and honest. The autumn Budget is scheduled for 26 November. After her Budget speech, tradition dictates that the Chancellor will go to the Two Chairmen for a well-earned gin and tonic. That pub, which I hasten to add is not accused of any wrongdoing, is owned via the Isle of Man and leased to Greene King, which is itself owned via the Cayman Islands. I think that encapsulates just how out of hand the shadow financial system has become.”
“But partnership brings mutual obligations, which must include the shared commitment we have all made to openness, integrity and accountability, because every pound laundered through a BVI shell company and every mansion bought with stolen public funds is a stain on our national integrity. Cleaning up this system is not just an act of international justice; it is a patriotic duty. We cannot build clean foundations for growth while our financial system remains a refuge for dirty money. Public, accessible and verifiable registers of beneficial ownership are not a burden; they are our competitive advantage.”
“If legitimate-interest access filters are an interim step, what assurances can he give me that journalists, civil society organisations and others with a genuine interest will have open and repeated access to company data in the overseas territories? Finally, will the Minister meet me and Yaroslaw from the Bolton branch of the Association of Ukrainians in Great Britain to reassure him that the Government are doing all they can to bring an end to Putin’s barbaric war in Ukraine, including by enforcing economic sanctions in the OTs? My speech does not seek to undermine the important constitutional relationship between the overseas territories and the UK. I welcome, for example, the £7.5 million recently provided by the UK to Commonwealth member Jamaica after Hurricane Melissa, alongside $1.2 million from the Cayman Islands.”
“What update can the Minister give us on that visit? With November’s Joint Ministerial Council rapidly approaching, will he remind those overseas territories that continue to delay the implementation of publicly accessible registers of beneficial ownership, with the maximum possible degree of access and transparency as per last year’s joint communiqué, of their commitment? Concerningly, the 2024 JMC communiqué contained the following line: “We note the UK Government’s ambition that Publicly Accessible Registers of Beneficial Ownership (PARBOs) become a global norm and its expectation that Overseas Territories and Crown Dependencies implement full PARBOs.” Will the Minister confirm that the overseas territories and the Crown dependencies are still expected by His Majesty’s Government to implement fully public corporate registers?”
“It can be done, as in the case of the Isle of Man, where considerable work is under way to invest in offshore wind. Let me be clear: transparency has not hindered economies elsewhere. The UK has had a fully public register for years, and the sky has not fallen in. Research commissioned by the UK Government estimated that corporate transparency reforms produce data worth up to £3 billion to the public and private sectors. Look at Gibraltar, which has continued to grow, driven by insurance, gaming and fintech, even after introducing full beneficial ownership transparency. I have a number of asks of the Minister. Last month, the Prime Minister’s anti-corruption champion, Baroness Margaret Hodge, visited the BVI to understand what progress it is making towards fully open registers of beneficial ownership.”
“Although some good work has been done, substantial areas remain, including exorbitant costs and an unreasonably high threshold for granting applications from civil society and journalists. The fact remains that some of the largest financial centres under the British flag are still operating secretive structures that enable tax evasion, sanctions evasion and kleptocracy. Occasionally, capacity restraints are cited. The UK Government rightly have an obligation to step in and provide technical support. There is also a suggestion that some jurisdictions do not want to fulfil their promises, lest they lose their competitive advantage. To those naysayers, I say that the UK has an obligation to help its overseas territories to diversify their economies.”
“Bermuda has made positive noises, although there is still room for improvement in its recent statement on next steps under its Beneficial Ownership Act 2025. Elsewhere progress has been slow and patchy. The British Virgin Islands, in particular, remain a serious concern. Transparency International UK has warned that the British Virgin Islands’ proposed company register framework is not compatible with global transparency standards, with journalists being granted information on only a subset of data, rather than the beneficial ownership that they record, even baking in a tip-off for people being investigated, giving them a chance to object to their information being shared with a journalist. The Cayman Islands have also been slow to move from consultation to implementation.”
“But being family means being honest, and I am afraid to say that certain jurisdictions have not covered themselves in glory by obfuscating, delaying, ignoring and frustrating the will of this Parliament. It is not acceptable. Missing deadlines sends a “terrible message” to the world, according to the current Deputy Prime Minister, in response to a question I asked him earlier this year when he was before the Foreign Affairs Committee. This speech is not lazily tarring all overseas territories with the same brush. Far from it: Gibraltar, Montserrat and St Helena have delivered and deserve praise. The Falkland Islands are on track to implement by mid-2026 and are engaging constructively with the UK Government.”
“Member for Sutton Coldfield (Sir Andrew Mitchell) and the Government’s anti-corruption champion, Baroness Hodge, successfully secured an amendment to the Sanctions and Anti-Money Laundering Act 2018. I pay tribute to them for their tenacious campaigning over many years. Their amendment required all overseas territories to introduce registers of beneficial ownership by 2020. That deadline slipped to 2023, and then to 2025—another deadline that was largely missed. The UK’s overseas territories are a valued and integral part of our British family. Their ties to us are deep, and their prosperity is something we rightly cherish. They are our partners in defence, trade and increasingly in tackling the great global challenges of our age: climate change, migration and the rule of law.”
“Next year, when the UK hosts the countering illicit finance summit, the Government will have a chance to show further leadership, but the UK cannot credibly call on others to improve transparency if the jurisdictions flying our flag lag behind on beneficial ownership. Our diplomats work tirelessly to promote British values overseas—the rule of law, fair competition and integrity in public life—yet, when investigative journalists, non-governmental organisations or foreign Governments look into global corruption cases, the trail often runs through a British overseas territory. That damages us and weakens our hand in international negotiations, giving cover to regimes that would keep their elites’ wealth hidden. What needs to happen? In 2018, MPs led by the right hon.”
“Protecting our democracy from foreign interference is made all the more difficult by crypto firms involving themselves in our politics while hiding behind the veil of corporate secrecy, enabled by our overseas territories. We come on to international leadership. Financial secrecy in jurisdictions under the Union flag does not just damage our economy; it damages our credibility. The UK rightly prides itself on being a global leader in the fight against economic crime. We have made real progress with the Economic Crime (Transparency and Enforcement) Act 2022, the Economic Crime and Corporate Transparency Act 2023 and the register of overseas entities, by boosting the powers of Companies House, and with the Treasury’s recent welcome announcement on reforming our anti-money laundering framework.”
“The FinCEN files reveal that in 2016 the husband of Lubov Chernukhin received more than £6 million from Suleiman Kerimov, who was sanctioned in 2022 by the UK for his connections to Putin. Kerimov used a BVI company to conceal that payment. Lubov Chernukhin has donated more than £2 million to the Conservative party since 2012. I have additional concerns about the Electoral Commission’s capacity to keep up with cryptocurrency donations, which Reform has reportedly already begun accepting. Indeed, the crypto platform Zebec sponsored a panel at Reform’s party conference on “Strengthening the Rule of Law: legislative reform?”. Zebec is, unsurprisingly, ultimately controlled by an entity registered in the British Virgin Islands, as reported by The Observer .”
“Even when the authorities do catch fraudsters, financial secrecy in our offshore territories inhibits our ability to hold criminals to account. Covid fraudster Gerald Smith was prosecuted by the Serious Fraud Office, but tried to use a BVI company to obstruct the seizure of a flat he owned to avoid paying compensation, resulting in a direct loss to the taxpayer. He still owes £82 million—and he is not alone. Just this summer the SFO told the all-party parliamentary group on anti-corruption and responsible tax, which I chair, that 25% of all cases that it is currently investigating have links to the overseas territories. A final point on national security: I am gravely concerned that secrecy jurisdictions open a back door into our politics.”
“As reported by the BBC, that cartel has flooded UK streets with drugs and guns over two decades. According to an investigation by The Times , in order to avoid US sanctions, the Kinahans recently sought anonymity using jurisdictions such as the Cayman Islands, the BVI and the Isle of Man. Even organised fraud finds shelter in the overseas territories. Just last month, the Foreign Secretary rightly announced sanctions on a global scam network led by Cambodian citizen Chen Zhi, who allegedly used BVI companies to launder profits. Those profits were reportedly routed into a £12 million mansion in north London, a £100 million City office block and a string of luxury flats, while victims across the world were left penniless.”
“When dirty money flows unchecked through our financial system, it erodes the credibility of our foreign policy, drives up the cost of energy and food, and ultimately fuels Putin’s brutal war in Ukraine. In addition, criminal gangs involved in drug smuggling, people trafficking or protection rackets need to launder their ill-gotten gains into the regular economy. The financial secrecy afforded by the overseas territories gives the perfect cover to dodgy accountants, lawyers and corporate service providers. Edin “Tito” Gačanin, a Dutch passport holder but a Bosnia and Herzegovina native, was convicted last year of trafficking drugs from South America into Europe. It has been alleged that Gačanin is connected to the infamous Kinahan cartel, one of Europe’s most notorious organised crime gangs.”
“He said: “The government needs to seize all Russian assets which should be used to fund the Ukrainian war effort. It irks us that the oligarchs are living the high life in the west, whilst the Russians continue to bomb and use drones to kill civilians, including children.” What should I say to him? Elsewhere, the Office of Financial Sanctions Implementation has reported that since February 2022 more than a quarter of suspected sanctions breaches have involved intermediary jurisdictions, including the BVI and Guernsey. This level of financial secrecy allows sanctioned elites and hostile actors to hide their wealth, undermining Britain’s sanctions regime and weakening our ability to deter aggression.”
“Opponents will say that UK law enforcement agencies have access to this information, but many agencies are critically underfunded and simply do not have the capacity to keep up the bewildering game of whack-a-mole that they play with bad faith actors. Transparency International UK has identified around £700 million-worth of UK property linked to sanctioned Russian oligarchs that went unflagged in the UK’s register of overseas entities in 2022. Among them is a vast Hampstead estate valued at up to £300 million, reportedly owned by Russian chemicals magnate Andrey Guryev. Reports suggest the property was originally acquired using a company based in—you guessed it—the British Virgin Islands. I asked my friend Yaroslaw Tymchyshyn, chair of the Bolton branch of the Association of Ukrainians in Great Britain how he felt about this.”
“I commend the Minister for his personal leadership in ensuring that it is Putin and his cronies who pay for their unlawful war. The overseas territories have played an important role in enforcing those sanctions, freezing over £7 billion in Russia-linked assets. Indeed, initiatives like the Cayman Islands’ Operation Hektor, which has frozen £6 million of assets, deserve recognition. Enforcement is only as strong as the weakest link. If opaque corporate structures allow sanctioned individuals to move assets through nominee companies, the whole system is undermined. That is why full beneficial ownership transparency is not a bureaucratic nicety; it is a national security measure.”
“The beneficial owner was always elsewhere. Every time we spoke to law enforcement, journalists or civil society about dirty money, the same names came up: the BVI, the Cayman Islands and Bermuda. It is farcical. Banks, lawyers and accountants are on the frontline of anti-money laundering checks. Collectively, they spend over £38 billion a year on financial crime prevention—the equivalent of £21,000 every hour. A good-quality public register of beneficial ownership would make their work cheaper, faster and, frankly, more effective, unlocking the growth potential of our world-leading financial services sector. On national security, since Russia’s barbaric invasion of Ukraine, the UK has quite rightly been at the forefront of the global sanctions regime against Putin.”
“I thank my hon. Friend for his passionate campaigning on this issue. He is absolutely right that we need more transparency to support our law enforcement agencies to tackle this issue, and I will come on to that now. I pay tribute to the brilliant enforcement work undertaken by the National Crime Agency through its Operation Machinize. Just last week, police visited a number of addresses in my constituency, seizing £17,000-worth of goods in the process. I applaud the work of our enforcement agencies, but as I will explain, these tireless professionals need more support in their work. Elsewhere, financial murkiness causes friction for British businesses. When I worked in finance, we would often conduct “know your customer” checks and hit a wall, because a trust or a corporate service provider was incorporated in a secrecy jurisdiction.”