New Approach Proposed to Address Corruption and Financial Crime
Labour is set to propose a series of measures aimed at tackling financial crime in the UK, including actions against enablers of kleptocracy and offering rewards for whistleblowers who identify breaches of sanctions.
David Lammy, the shadow foreign secretary, will outline the party’s plans on Tuesday, highlighting an international initiative to combat financial crime, starting with a UK-hosted summit to elevate the issue on the global stage.
The proposals include advocating for the establishment of an international anti-corruption court to prosecute serious crimes, contingent on Labour winning the general election expected later this year.
Lammy will assert that after nearly 15 years of Conservative-led governance, the UK has become a hub for corruption, with London being a focal point for kleptocracy. In a speech at the Institute for Public Policy Research think-tank in London, he will commit to a Labour government’s “fresh approach based on action, enforcement, and a crackdown on enablers,” which includes professionals such as lawyers, accountants, and estate agents.
This announcement follows remarks by Andrew Mitchell, the Conservative deputy foreign secretary, who recently estimated that 40 percent of the world’s laundered money passes through London, UK overseas territories, and crown dependencies.
According to a 2019 National Crime Agency assessment, money laundering involving criminals and terrorists costs the UK more than £100 billion annually and undermines confidence in the British economy.
Labour’s proposals include expanding registration requirements for UK trusts to prevent their use in illicit activities and enhancing transparency around trust ownership of UK property. This initiative would involve collaboration with overseas territories to establish a common transparency regime.
The party also plans to tighten the UK’s sanctions regime to address money laundering, exploring new mechanisms to ban individuals involved in such activities from entering the UK.
Additionally, Labour intends to incentivize whistleblowers by offering up to 25 percent of any fines imposed by the Office of Financial Sanctions Implementation for information leading to the discovery of assets of sanctioned individuals and entities within UK jurisdictions. The regulator can impose fines of up to £1 million.
Lammy will emphasize that allies in the US, Ukraine, Africa, and the Caribbean have expressed concerns about the UK’s approach to corruption and its perceived loopholes in the sanctions regime. He will argue that kleptocracy, corruption, and money laundering finance crime in the UK and undermine the rule of law.
As part of Labour’s plan for the UK to assume a global leadership role in anti-money laundering efforts, the party proposes a new framework for effective information-sharing between countries. This would involve establishing real-time global data exchanges on the beneficial ownership of corporate structures, including trusts, to support cross-border investigations.
Stay updated with supply chain news at The Supply Chain Report. Learn more about international trade at ADAMftd.com with free tools.
#FinancialCrime #AntiMoneyLaundering #AML #UKPolitics #LabourParty #DavidLammy #Corruption#SupplyChainNews
