Session 2016-17
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1

 

House of Commons

 
 

Notices of Amendments

 

given up to and including

 

Friday 11 November 2016

 

New Amendments handed in are marked thus Parliamentary Star

 

Parliamentary Star - whiteAmendments which will comply with the required notice period at their next appearance

 

Public Bill Committee


 

Criminal Finances Bill


 

Note

 

This document includes all amendments tabled to date and includes any

 

withdrawn amendments at the end. The amendments have been arranged in

 

accordance with the Order to be proposed by Mr Ben Wallace.

 


 

Mr Ben Wallace

 

To move, That the Bill be considered in the following order, namely, Clauses 1 to 14;

 

Schedule 1; Clauses 15 to 29; Schedule 2; Clauses 30 to 32; Schedule 3; Clause 33;

 

Schedule 4; Clauses 34 to 44; new Clauses; new Schedules; Clause 45; Schedule 5;

 

Clauses 46 to 51; remaining proceedings on the Bill.

 


 

Mr Ben Wallace

 

That, subject to the discretion of the Chair, any written evidence received by the

 

Committee shall be reported to the House for publication.

 

 



 
 

Notices of Amendments: 11 November 2016                  

2

 

Criminal Finances Bill, continued

 
 

Mr Ben Wallace

 

That, at this and any subsequent meeting at which oral evidence is to be heard, the

 

Committee shall sit in private until the witnesses are admitted.

 


 

Dr Rupa Huq

 

1

 

Clause  1,  page  1,  line  16,  after “sought” insert—

 

“(and the property specified may include property located outside the

 

United Kingdom)”

 

Member’s explanatory statement

 

This amendment would ensure that unexplained wealth ordered may be issued for property located

 

outside the UK.

 

Dr Rupa Huq

 

2

 

Clause  1,  page  2,  line  31,  at end insert—

 

“(8)    

Persons who are members of an enforcement authority must co-operate with other

 

persons who are members of other enforcement authorities for the purposes of

 

making application to the High Court for an unexplained wealth order.

 

(9)    

In particular, the duty imposed on a person by subsection (8) requires a person—

 

(a)    

to engage constructively, actively and on an ongoing basis in any process

 

leading to an application being made for an unexplained wealth order,

 

and

 

(b)    

to have regard to activities of a person within subsection (8) so far as they

 

are relevant to the making of an application for an unexplained wealth

 

order.”

 

Member’s explanatory statement

 

This amendment would require enforcement authorities to co-operate when making applications

 

for unexplained wealth orders.

 

Dr Rupa Huq

 

3

 

Clause  1,  page  3,  leave out line 28

 

Member’s explanatory statement

 

This amendment would allow unexplained wealth orders to be issued to politically exposed

 

persons in the United Kingdom and other EEA States.

 


 

Dr Rupa Huq

 

4

 

Clause  37,  page  95,  line  27,  at end insert—

 

“(d)    

taking action which a reasonable person ought to have known would

 

facilitate a UK tax evasion offence.”

 

Member’s explanatory statement

 

This amendment would increase the scope of the failure to prevent facilitation of UK tax evasion


 
 

Notices of Amendments: 11 November 2016                  

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Criminal Finances Bill, continued

 
 

offences to include actions that a reasonable person ought to have known would facilitate a UK

 

tax evasion offence.

 


 

Dr Rupa Huq

 

5

 

Clause  38,  page  96,  line  6,  after “United Kingdom” insert—

 

“Crown dependency or British overseas territory”

 

Member’s explanatory statement

 

This amendment would extend the offence of failure to prevent facilitation of foreign tax evasion

 

offences to companies incorporated in a British Overseas Territory or Crown Dependency.

 

Dr Rupa Huq

 

6

 

Clause  38,  page  96,  line  7,  after “United Kingdom” insert—

 

“Crown dependency or British overseas territory”

 

Member’s explanatory statement

 

This amendment would extend the offence of failure to prevent facilitation of foreign tax evasion

 

offences to companies doing business in a British Oversea Territory or Crown Dependency.

 

Dr Rupa Huq

 

7

 

Clause  38,  page  96,  line  9,  after “United Kingdom” insert—

 

“Crown dependency or British overseas territory”

 

Member’s explanatory statement

 

This amendment would extend the offence of failure to prevent facilitation of foreign tax evasion

 

offences to conduct conducted in a British Oversea Territory or Crown Dependency.

 


 

New Clauses

 

Roger Mullin

 

Richard Arkless

 

 

NC1

 

To move the following Clause—

 

         

“Review of Scottish Limited Partnership

 

(1)    

The Secretary of State must undertake a review into the extent of financial

 

criminal activity associated with Scottish Limited Partnerships, and lay a copy of

 

the review before the House of Commons within six months of this Act receiving

 

Royal Assent.

 

(2)    

In conducting the review the Secretary of State must consult—

 

(a)    

the Scottish Government;

 

(b)    

the National Crime Agency;

 

(c)    

the Serious Fraud Office;

 

(d)    

the Financial Conduct Authority;

 

(e)    

HMRC;


 
 

Notices of Amendments: 11 November 2016                  

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Criminal Finances Bill, continued

 
 

(f)    

interested third sector organisations; and

 

(g)    

any other persons he deems relevant.

 

(3)    

The review must set out what steps the Government intends to take to prevent

 

Scottish Limited Partnerships being used for criminal purposes.”

 

Member’s explanatory statement

 

This new clause would require the Secretary of State to conduct a review of financial criminality

 

associated with Scottish Limited Partnerships and set out what steps the Government intends to

 

take to prevent Scottish Limited Partnerships being used for criminal purposes.

 


 

Dr Rupa Huq

 

NC2

 

To move the following Clause—

 

         

“National Crime Agency: Report on staff training

 

Clause 3 of the Proceeds of Crime Act 2002 is amended as follows, after

 

subsection (7) insert—

 

(8)    

The National Crime Agency must make an annual report to Parliament on the

 

provision of training to persons under this section.”

 

Member’s explanatory statement

 

This new clause would require the National Crime Agency to make a report to Parliament about

 

the training it provides to its staff in financial investigation and the operation of the Proceeds of

 

Crime Act.

 


 

Dr Rupa Huq

 

NC3

 

To move the following Clause—

 

         

“Annual reporting: Adequacy of resources

 

(1)    

In Part 12 of the Proceeds of Crime Act 2002 (miscellaneous and general), after

 

section 455, insert—

 

“455A

 Annual reports on resources

 

(1)    

A relevant authority must, no later than 1 June in each calendar year,

 

prepare an annual report on the adequacy of the resources available from

 

money voted by Parliament for the exercise of any functions of that

 

authority—

 

(a)    

under this Act;

 

(b)    

in connection with investigations into terrorist financing

 

offences under the Terrorism Act 2000;

 

(c)    

under Part 3 of the Criminal Finances Act 2017.

 

(2)    

In this section, “a relevant authority” means—

 

(a)    

the National Crime Agency;

 

(b)    

the Director of Public Prosecutions;

 

(c)    

the Director of the Serious Fraud Office, and


 
 

Notices of Amendments: 11 November 2016                  

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Criminal Finances Bill, continued

 
 

(d)    

Her Majesty’s Revenue and Customs.

 

(3)    

The reports prepared in accordance with subsection (1) shall be sent—

 

(a)    

in the case of the National Crime Agency, to the Secretary of

 

State;

 

(b)    

in the case of the Director of Public Prosecutions and the

 

Director of the Serious Fraud Office, to the Attorney General,

 

and

 

(c)    

in the case of Her Majesty’s Revenue and Customs, to the

 

Chancellor of the Exchequer.

 

(4)    

The person receiving annual reports in accordance with subsection (3)

 

must lay those reports before each House of Parliament in the form in

 

which they were received no later than 30 June in the same calendar year,

 

together with a statement on plans for future resources to be provided

 

from money voted by Parliament.”

 

Member’s explanatory statement

 

This new clause would require the National Crime Agency and other agencies to report annually

 

to Parliament on the adequacy of its resource to fulfil its functions relating to combating financial

 

crime.

 


 

Dr Rupa Huq

 

NC4

 

To move the following Clause—

 

         

“Public registers of beneficial ownership of companies registered in Crown

 

dependencies and overseas territories

 

(1)    

In Part 1 of the Proceeds of Crime Act 2002 (introductory), after section 2A,

 

insert—

 

“2AA  

Duty of Secretary of State: Public registers of beneficial ownership of

 

companies registered in overseas territories and Crown dependencies

 

(1)    

It shall be the duty of the Secretary of State, in furtherance of the

 

purposes of—

 

(a)    

this Act; and

 

(b)    

Part 3 of the Criminal Finances Act 2017

 

    

to take the steps set out in this section.

 

(2)    

The first step is, no later than 31 December 2017, to provide all

 

reasonable assistance to the Governments of Crown dependencies and

 

overseas territories to enable each of those Governments to establish a

 

publicly accessible register of the beneficial ownership of companies

 

registered in that Government’s jurisdiction.

 

(3)    

The second step is, no later than 31 December 2018, to publish legislative

 

proposals to require the Government of any Crown dependency or

 

overseas territory that has not established a publicly accessible register of

 

the beneficial ownership of companies registered in that Government’s

 

jurisdiction to do so.


 
 

Notices of Amendments: 11 November 2016                  

6

 

Criminal Finances Bill, continued

 
 

(4)    

In this section—

 

“legislative proposals” means either—

 

(a)    

a draft Order in Council; or

 

(b)    

a Bill presented to either House of Parliament.

 

“a publicly accessible register of the beneficial ownership of

 

companies” means a register which, in the opinion of the

 

Secretary of State, provides information broadly equivalent to

 

that available in accordance with the provisions of Part 21A of

 

the Companies Act 2006.”

 

Member’s explanatory statement

 

This new clause would require the Secretary of State to take steps to require overseas territories

 

and Crown Dependencies to establish publicly accessible register of the beneficial ownership,

 

including legislative steps if necessary.

 


 

Dr Rupa Huq

 

NC5

 

To move the following Clause—

 

         

“Accredited financial investigators: Recovery of training costs

 

(1)    

The Secretary of State shall have a duty to work with enforcement authorities to

 

ensure that enforcement authorities have in place training cost agreements with

 

staff who are trained by the enforcement authority to be accredited financial

 

investigators.

 

(2)    

For the purposes of this section

 

“Enforcement authority” has the same meaning as in subsection 362A(7) of

 

the Proceeds of Crime Act 2002

 

“training costs agreement” means an agreement requiring an employee who

 

has been trained as an accredited financial investigator to repay the cost

 

of their training if they voluntarily leave the employment of the

 

enforcement authority within 3 years of their training being completed.

 

“accredited financial investigators” has the same meaning as in subsection

 

47A(2) of the Proceeds of Crime Act 2002.”

 

Member’s explanatory statement

 

This new clause would place a duty on the Secretary of State to work with enforcement agencies

 

to ensure that the agencies have appropriate HR arrangements in place to recover the costs of

 

training accredited financial investigators where the AFI leaves the employment of the agency

 

within 3 years of completing their training.

 


 

Dr Rupa Huq

 

NC6

 

Parliamentary Star - white    

To move the following Clause—

 

         

“Failure to prevent financial crime

 

(1)    

A relevant body (B) is guilty of an offence if a person commits a criminal

 

financial offence when acting in the capacity of a person associated with (B).


 
 

Notices of Amendments: 11 November 2016                  

7

 

Criminal Finances Bill, continued

 
 

(2)    

It is a defence for B to prove that, when the criminal financial offence was

 

committed—

 

(a)    

B had in place such prevention procedures as it was reasonable in all the

 

circumstances to expect B to have in place, or

 

(b)    

it was not reasonable in all the circumstances to expect B to have any

 

prevention procedures in place.

 

(3)    

In subsection (2) “prevention procedures” means procedures designed to prevent

 

persons acting in the capacity of a person associated with B from committing

 

criminal financial offences.

 

(4)    

For the purposes of this clause—

 

“criminal financial offence” means one of the following offences—

 

(a)    

an offence under section 1, 6 or 7 of the Fraud Act 2006;

 

(b)    

an offence under section 12 of the Theft Act 1968;

 

(c)    

an offence under section 327, 328 and 329 of the Proceeds of

 

Crime Act 2002;

 

(d)    

a common law offence of conspiracy to defraud;

 

“relevant body” has the same meaning as in section 36.

 

(5)    

A relevant body guilty of an offence under this section is liable—

 

(a)    

on conviction on indictment, to a fine,

 

(b)    

on summary conviction in England and Wales, to a fine,

 

(c)    

on summary conviction in Scotland or Northern Ireland, to a fine not

 

exceeding the statutory maximum.

 

(6)    

It is immaterial for the purposes of this section whether—

 

(a)    

any relevant conduct of a relevant body, or

 

(b)    

any conduct which constitutes part of a relevant criminal financial

 

offence

 

    

takes place in the United Kingdom or elsewhere.”

 

Member’s explanatory statement

 

This new clause would create a corporate offence of failing to prevent financial crime.

 


 

Dr Rupa Huq

 

NC7

 

Parliamentary Star - white    

To move the following Clause—

 

         

“Corporate probation order

 

(1)    

A court before which a relevant body (B) is convicted of an offence under section

 

37 or 38 of this Bill may make a corporate probation order in relation to B.

 

(2)    

A corporate probation order—

 

(a)    

shall require B to implement a compliance procedure or make changes to

 

an existing compliance procedure to prevent persons acting in the

 

capacity of a person associated with B for committing UK tax evasion

 

facilitation offences or foreign tax evasion facilitation offences;

 

(b)    

may require B to appoint an external body to verify that compliance

 

programme, costs of which shall be met by B.

 

(3)    

A corporate probation order may be made only on an application by the

 

prosecution specifying the terms of the proposed order. Any such order must be

 

on such terms (whether those proposed or others) as the court considers


 
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Revised 11 November 2016