Session 2017-19
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Other Bills before Parliament


 
 

Public Bill Committee: 27 February 2018                  

15

 

Sanctions and Anti-Money Laundering Bill-[Lords], continued

 
 

(2)    

No later than 1 January 2019 the Secretary of State must prepare an Order in

 

Council in respect of any British overseas territories listed in subsection (1) that

 

have not by that date introduced a publicly accessible register of the beneficial

 

ownership of companies within their jurisdiction, requiring them to adopt such a

 

register by 1 January 2020.

 

(3)    

In this section a “publicly accessible register of 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 (information about people

 

with significant control).”

 

Member’s explanatory statement

 

This new clause would require the Secretary of State to take steps to ensure the governments of

 

specified British overseas territories introduce public registers of beneficial ownership of

 

companies.

 


 

Helen Goodman

 

Anneliese Dodds

 

NC2

 

To move the following Clause—

 

         

“Public register of beneficial ownership of UK property by companies and

 

other legal entities registered outside the UK

 

(1)    

In addition to the provisions made under paragraph 6 of Schedule 2, for the

 

purpose of preventing money laundering in the UK property market and public

 

procurement, the Secretary of State must create a public register of beneficial

 

ownership information for companies and other legal entities registered outside

 

of the UK that own or buy UK property, or bid for UK government contracts.

 

(2)    

The register must be implemented within 12 months of the day on which this Act

 

is passed.”

 

Member’s explanatory statement

 

This new clause would require the Secretary of State to create a public register of beneficial

 

ownership information for companies and other legal entities registered outside of the UK that

 

own or buy UK property, or bid for UK government contracts, within 12 months.

 


 

Helen Goodman

 

NC5

 

To move the following Clause—

 

         

“Reports on the use of exemptions and licensing

 

(1)    

Where regulations are made under section 1, the appropriate Minister must—

 

(a)    

prepare a report on the matters mentioned in subsection (2) for—

 

(i)    

the period of twelve months beginning with the day on which the

 

regulations made under section 1 come into force; and

 

(ii)    

every subsequent twelve month period; and

 

(b)    

lay a copy of each such report before Parliament.


 
 

Public Bill Committee: 27 February 2018                  

16

 

Sanctions and Anti-Money Laundering Bill-[Lords], continued

 
 

(2)    

The matters are—

 

(a)    

the number of applications for humanitarian licences made during the

 

reporting period including specific detail about whether licences were

 

requested by EU Member States or the United States of America;

 

(b)    

the number of humanitarian licences granted, refused or withdrawn

 

during the reporting period;

 

(c)    

the number of non-humanitarian exemptions and licences requested;

 

(d)    

the number of non-humanitarian exemptions and licences granted,

 

refused or withdrawn; and

 

(e)    

the amount of time taken for each application to be processed during the

 

reporting period.”

 

Member’s explanatory statement

 

This new clause would require the Government to lay a report before Parliament every 12 months

 

reporting on the use of both humanitarian and non-humanitarian exemptions and licensing.

 


 

Helen Goodman

 

NC6

 

Parliamentary Star - white    

To move the following Clause—

 

         

“Alignment of Sanctions

 

(1)    

It shall be a negotiating objective of Her Majesty’s Government in negotiations

 

on the matters specified in subsection (2) to continue the United Kingdom’s

 

participation in the Political and Security Committee of the European Union in

 

order to align sanctions policy with the European Union.

 

(2)    

Those matters are—

 

(a)    

the United Kingdom’s withdrawal from the European Union, and

 

(b)    

a permanent agreement with the European Union for a period subsequent

 

to the transitional period after the United Kingdom’s withdrawal from the

 

European Union.

 

(3)    

It shall be the duty of the Secretary of State to lay a report before both Houses of

 

Parliament in accordance with either subsection (4) or subsection (5).

 

(4)    

A report under this subsection shall be to the effect that the negotiating objective

 

specified in subsection (1) has been achieved.

 

(5)    

A report under this subsection shall be to the effect that the negotiating objective

 

specified in subsection (1) has not been achieved.

 

(6)    

This Act shall not come into force until a report under either subsection (4) or (5)

 

has been approved via resolution of the House of Commons and considered by

 

the House of Lords.”

 

Member’s explanatory statement

 

This new clause would require the UK Government to seek continued participation in the Political

 

and Security Committee so as to allow alignment on international sanctions.

 



 
 

Public Bill Committee: 27 February 2018                  

17

 

Sanctions and Anti-Money Laundering Bill-[Lords], continued

 
 

Helen Goodman

 

Anneliese Dodds

 

NC7

 

Parliamentary Star    

To move the following Clause—

 

         

“Parliamentary committee to scrutinise regulations

 

(1)    

A Minister may not lay before Parliament a statutory instrument under section

 

48(5) unless a committee of the House of Commons charged with scrutinising

 

statutory instruments made under this Act has recommended that the instrument

 

be laid.

 

(2)    

The committee of the House of Commons so charged under subsection (1) may

 

scrutinise any reviews carried out under section 27 of this Act.”

 

Member’s explanatory statement

 

This new clause would require a specialised House of Commons Committee to approve all

 

statutory instruments laid under the affirmative procedure under this Act. The Committee would

 

also scrutinise the Government’s reviews of sanctions regulations.

 


 

Helen Goodman

 

Anneliese Dodds

 

NC8

 

Parliamentary Star    

To move the following Clause—

 

         

“Public registers of beneficial ownership of companies in the British Crown

 

Dependencies

 

(1)    

For the purpose of preventing money laundering, the Secretary of State must

 

consult with the authorities of governments in each Crown Dependency on

 

establishing a publicly accessible register of the beneficial ownership of

 

companies registered in their jurisdictions.

 

(2)    

Within 6 months of this Act being passed, and every 12 months thereafter, the

 

Secretary of State must report to Parliament on progress within the Crown

 

Dependencies on establishing registers as referred to in subsection (1).

 

(3)    

In this section a “publicly accessible register of 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 (information about people

 

with significant control).”

 

Member’s explanatory statement

 

This new clause would require the Secretary of State to consult with the governments in each

 

Crown Dependency about introducing public registers of beneficial ownership of companies in the

 

Crown Dependencies, and to report to Parliament on the progress of establishing such registers.

 



 
 

Public Bill Committee: 27 February 2018                  

18

 

Sanctions and Anti-Money Laundering Bill-[Lords], continued

 
 

Helen Goodman

 

Anneliese Dodds

 

NC9

 

Parliamentary Star    

To move the following Clause—

 

         

“Failure to prevent money laundering

 

(1)    

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

 

laundering facilitation offence when acting in the capacity of a person associated

 

with B.

 

(2)    

For the purposes of this section “money laundering facilitation offence” means—

 

(a)    

concealing, disguising, converting, transferring or removing criminal

 

property under section 327 of the Proceeds of Crime Act 2002

 

(concealing etc);

 

(b)    

entering into an arrangement which the person knows, or suspects,

 

facilitates (by whatever means) the acquisition, retention, use, or control

 

of criminal property under section 328 of the Proceeds of Crime Act 2002

 

(arrangements); or

 

(c)    

the acquisition, use or possession of criminal property, under section 329

 

of the Proceeds of Crime Act 2002 (acquisition, use and possession).

 

(3)    

It is a defence for B to prove that, when the money laundering facilitation offence

 

was committed, B had in place adequate procedures designed to prevent persons

 

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

 

offence.

 

(4)    

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; or

 

(c)    

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

 

exceeding the statutory maximum.

 

(5)    

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 offence,

 

    

takes place in the United Kingdom or elsewhere.

 

(6)    

In this section, “relevant body” and “acting in the capacity of a person associated

 

with B” have the same meaning as in section 44 of the Criminal Finances Act

 

2017 (meaning of relevant body and acting in the capacity of an associated

 

person).”

 

Member’s explanatory statement

 

This new clause would make it an offence if a relevant body failed to put in place adequate

 

procedures to prevent a person associated with it from carrying out a money laundering

 

facilitation offence. A money laundering facilitation offence would include concealing, disguising,

 

converting, transferring or removing criminal property under section 327 of the Proceeds of Crime

 

Act 2002.

 



 
 

Public Bill Committee: 27 February 2018                  

19

 

Sanctions and Anti-Money Laundering Bill-[Lords], continued

 
 

Helen Goodman

 

Anneliese Dodds

 

NC10

 

Parliamentary Star    

To move the following Clause—

 

         

“Registration of companies: anti-money laundering checks

 

(1)    

The Registrar of Companies must not register a company unless he or she is

 

satisfied that appropriate anti-money laundering checks have taken place.

 

(2)    

The Companies Act 2006 is amended as follows—

 

(a)    

in section 9, after subsection (5), insert—

 

“(5ZA)    

The application must provide satisfactory evidence that anti-

 

money laundering checks have taken place.”

 

(b)    

after section 13 insert—

 

“13A  

Satisfactory evidence of anti-money laundering checks

 

(1)    

The Registrar is entitled to accept the anti-money laundering

 

registration number of the United Kingdom body that has

 

submitted the application as satisfactory evidence under section

 

9(5ZA), provided he or she believes that number to be valid.

 

(2)    

The Secretary of State may by regulations made by statutory

 

instrument specify any other evidence that the Registrar may

 

accept under section 9(5ZA).

 

(3)    

A statutory instrument containing regulations under this section

 

is subject to annulment in pursuance of a resolution of either

 

House of Parliament.””

 

Member’s explanatory statement

 

This new clause would amend the Companies Act 2006 to ensure that the Registrar of Companies

 

does not register a company under that Act unless the required anti-money laundering checks have

 

taken place.

 


 

Helen Goodman

 

Anneliese Dodds

 

NC11

 

Parliamentary Star    

To move the following Clause—

 

         

“Due diligence

 

(1)    

For the purposes of preventing money laundering, when a company is formed,

 

any company formation agent providing formation services must ensure that the

 

identity and business risk profile of all beneficial owners of the company are

 

established in accordance with—

 

(a)    

the customer due diligence measures under the Money Laundering,

 

Terrorist Financing and Transfer of Funds (Information on the Payer)

 

Regulations 2017 (S.I. 2017/692),

 

(b)    

regulations made under section 41 of this Act, or

 

(c)    

the Directive (EU) 2015/849 of the European Parliament and of the

 

Council of 20 May 2015 on anti-money laundering measures.


 
 

Public Bill Committee: 27 February 2018                  

20

 

Sanctions and Anti-Money Laundering Bill-[Lords], continued

 
 

(2)    

For the purposes of subsection (1), Companies House is to be treated as a

 

“company formation agent”.”

 

Member’s explanatory statement

 

This new clause would ensure that when a company is formed in the UK, the relevant formation

 

services must identify the beneficial owners of the company. It will also treat Companies House as

 

a “company formation agent”, ensuring that the data on the public register of beneficial

 

ownership for companies is accurate.

 


 

Helen Goodman

 

Anneliese Dodds

 

NC12

 

Parliamentary Star    

To move the following Clause—

 

         

“Companies House: due diligence and resources

 

(1)    

For the purposes of preventing money laundering, the Companies Act 2006 is

 

amended as follows.

 

(2)    

In section 1061 (the registrar’s functions) after subsection (1) insert—

 

“(1A)    

Functions directed by the Secretary of State under subsection (1)(b) must

 

include due diligence on a person wishing to register a company.

 

(1B)    

In this section “due diligence” has the same meaning as “customer due

 

diligence measures” in regulation 3 of the Money Laundering, Terrorist

 

Financing and Transfer of Funds (Information on the Payer) Regulations

 

2017 (S.I. 692/2017).”

 

(3)    

In section 1063 (Fees payable to the registrar), in subsection (2)(a) after

 

“Secretary of State” insert “including the duty of due diligence under section

 

1061(1A).”

 

Member’s explanatory statement

 

This new clause would amend the duties of Companies House to ensure that any person wishing

 

to register a company must be checked for due diligence by Companies House, in line with the

 

measures included in the Money Laundering Regulations 2017. It also ensures that the Secretary

 

of State can charge fees for due diligence checks to cover costs incurred by Companies House.

 


 

Helen Goodman

 

Anneliese Dodds

 

NC13

 

Parliamentary Star    

To move the following Clause—

 

         

“UK bank accounts

 

(1)    

For the purposes of tackling money laundering, the Companies Act 2006 is

 

amended as follows.

 

(2)    

In section 853A (duty to deliver confirmation statements), after subsection (1)

 

insert—

 

“(1A)    

In subsection (1) “information” includes such information as is able to

 

demonstrate that the company has a UK bank account.


 
 

Public Bill Committee: 27 February 2018                  

21

 

Sanctions and Anti-Money Laundering Bill-[Lords], continued

 
 

(1B)    

Any company that is unable to provide the information required in

 

subsection (1A) is liable to a fee which may be prescribed by

 

regulations.””

 

Member’s explanatory statement

 

This new clause would ensure that all companies wishing to be created in the UK must provide

 

evidence of a UK bank account to ensure it has gone through proper money laundering checks by

 

a UK supervising body. If a company is unable to provide proof then they are liable to a fee which

 

will cover the cost of such checks.

 


 

Helen Goodman

 

Anneliese Dodds

 

NC14

 

Parliamentary Star    

To move the following Clause—

 

         

“Trust or company service providers

 

(1)    

For the purposes of preventing money laundering, a trust or company service

 

provider that does not carry on business in the UK may not incorporate UK

 

companies without oversight from an anti-money laundering supervisor.

 

(2)    

In this section—

 

“anti-money laundering supervisor” has the same meaning as “supervisory

 

authority” in Schedule 2;

 

“trust or company service provider” has the same meaning as in regulation

 

3 of the Money Laundering, Terrorist Financing and Transfer of Funds

 

(Information on the Payer) Regulations 2017 (S.I. 692/2017);

 

“carry on business in the UK” has the same meaning as in regulation 9 of

 

the Money Laundering, Terrorist Financing and Transfer of Funds

 

(Information on the Payer) Regulations 2017 (S.I. 692/2017).”

 

Member’s explanatory statement

 

This new clause would ensure that Trust or company service providers that do not conduct

 

business in the UK may not incorporate UK companies without oversight from a UK supervisor.

 


 

Helen Goodman

 

Anneliese Dodds

 

NC15

 

Parliamentary Star    

To move the following Clause—

 

         

“Disqualification

 

In the event that adequate procedures under subsection (3) of section [Failure to

 

prevent money laundering] are found not to be in place, the Secretary of State

 

must refer to the court a disqualification order under section 8 of the Company

 

Directors Disqualification Act 1986 (disqualification of director on finding of

 

unfitness).”

 

Member’s explanatory statement

 

This new clause would require the Minister to ask the courts to investigate whether directors of a


 
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Revised 27 February 2018