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Notices of Amendments: 27 April 2018                  

15

 

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

 
 

Helen Goodman

 

Anneliese Dodds

 

NC11

 

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.

 



 
 

Notices of Amendments: 27 April 2018                  

16

 

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

 
 

Helen Goodman

 

Anneliese Dodds

 

NC12

 

To move the following Clause—

 

         

“Public register of beneficial ownership of trusts and similar legal

 

arrangements

 

    

The Money Laundering, Terrorist Financing and Transfer of Funds (Information

 

on the Payer) Regulations 2017 are amended by leaving out paragraph (12) of

 

regulation 45 (Register of beneficial ownership) and inserting—

 

“(12)    

The Commissioners must ensure that the register is published.”.”

 

Member’s explanatory statement

 

This new clause would require the Government to publish the register of beneficial ownership of

 

trusts and similar legal arrangements on the day this Act is passed.

 


 

Helen Goodman

 

Anneliese Dodds

 

NC13

 

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 44 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.

 

(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.

 



 
 

Notices of Amendments: 27 April 2018                  

17

 

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

 
 

Helen Goodman

 

Anneliese Dodds

 

Dame Margaret Hodge

 

Catherine West

 

NC14

 

To move the following Clause—

 

         

“Public registers of beneficial ownership of companies in the Crown

 

Dependencies

 

(1)    

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

 

provide all reasonable assistance to the governments of the Crown Dependencies

 

to enable each of those governments to establish a publicly accessible register of

 

the beneficial ownership of companies registered in that government’s

 

jurisdiction.

 

(2)    

The Secretary of State must, by the deadline set for the implementation of the

 

European Union’s 5th Anti-Money Laundering Directive, prepare a draft Order

 

in Council requiring the government of any Crown Dependency that has not

 

introduced a publicly accessible register of beneficial ownership of companies

 

within their jurisdiction to do so.

 

(3)    

The draft Order in Council under subsection (2)—

 

(a)    

must be laid before Parliament after being made, and

 

(b)    

if not approved by a resolution of each House of Parliament before the

 

end of the 28 days beginning with the day on which it is made, ceases to

 

have effect at the end of that period (but without that affecting the power

 

to make a new Order).

 

(4)    

In calculating a period of 28 days for the purposes of subsection (4), no account

 

is to be taken of any time during which Parliament is dissolved or prorogued or

 

during which both Houses are adjourned for more than 4 days.

 

(5)    

For the purposes of 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).

 

(6)    

For the purposes of this section, “Crown Dependency” means—

 

(a)    

any of the Channel Islands;

 

(b)    

the Isle of Man.”

 



 
 

Notices of Amendments: 27 April 2018                  

18

 

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

 
 

Lloyd Russell-Moyle

 

Graham P Jones

 

Chris Law

 

Caroline Lucas

 

Stephen Twigg

 

Catherine West

Alex Norris

Alex Sobel

 

NC18

 

Parliamentary Star - white    

To move the following Clause—

 

         

“Winding up companies of designated persons

 

(1)    

The Secretary of State may, in respect of a designated person subject to sanctions

 

regulations under this Act—

 

(a)    

present a petition under section 124A of the Insolvency Act 1986 to wind

 

up a company owned or controlled by a designated person; and

 

(b)    

make a disqualification order under section 8 of the Company Directors

 

Disqualification Act 1986 against a designated person who is or has been

 

a director or shadow director of a company or an overseas company.

 

(2)    

In this section, “company” means a company registered under the Companies Act

 

2006 in the United Kingdom or a company that may be wound up under Part 5 of

 

the Insolvency Act 1986 (unregistered companies).

 

(3)    

In this section, “overseas company” means a company incorporated or formed

 

outside the United Kingdom”.

 

Member’s explanatory statement

 

This new clause would ensure the Secretary of State could close down companies owned or

 

controlled by a person subject to sanctions under this Act using the pre-existing powers in the

 

Insolvency Act 1986 and Company Directors Disqualification Act 1986.

 


 

Alison Thewliss

 

NC19

 

Parliamentary Star - white    

To move the following Clause—

 

         

“Scottish Limited Partnerships: UK bank account requirement

 

(1)    

For the purposes of preventing money laundering, where a limited partnership

 

registered in Scotland has general partners at least one of those must have an

 

active UK bank account.

 

(2)    

Where a limited partnership registered in Scotland has limited partners at least

 

one of those must have an active UK bank account.

 

(3)    

In this section—

 

a “limited partnership registered in Scotland” means a partnership

 

registered under the Limited Partnerships Act 1907;

 

“general partner” has the meaning given in section 4(2) of the Limited

 

Partnership Act 1907;

 

“limited partner” has the meaning given in section 4(2A) of the Limited

 

Partnership Act 1907.”

 



 
 

Notices of Amendments: 27 April 2018                  

19

 

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

 
 

Alison Thewliss

 

NC20

 

Parliamentary Star - white    

To move the following Clause—

 

         

“Periodic review of exercise of powers and operation of Act

 

(1)    

As soon as reasonably practicable after the end of—

 

(a)    

the period of six months beginning with the day this Act is passed, and

 

(b)    

every 12 month period which ends with the first or subsequent

 

anniversary of the end of the period mentioned in the preceding

 

paragraph,

 

    

the Secretary of State must prepare a report about the exercise of the powers

 

conferred by this Act and lay a copy of that report before Parliament.

 

(2)    

Subject to issues of confidentiality the said report shall include a summary of any

 

representations made in relation to the exercise or proposed exercise of the

 

powers and the response of the appropriate Minister to the same.

 

(3)    

The Independent Reviewer appointed pursuant to section 20 of the Terrorism

 

Prevention and Investigation Measures Act 2011 (“the 2011 Act”) shall include

 

a review of the operation of this Act in the reports by the Independent Reviewer

 

produced pursuant to the 2011 Act.”

 

Member’s explanatory statement

 

This new clause would require a periodic review of the exercise of the powers and operation

 

of this Act six months after Royal Assent and every 12 months thereafter.

 

 


 

Alison Thewliss

 

1

 

Clause  1,  page  1,  line  8,  leave out “appropriate” and insert “necessary”

 

Sir Alan Duncan

 

Helen Goodman

 

Anneliese Dodds

 

10

 

Clause  1,  page  2,  line  11,  at end insert—

 

“(ea)    

provide accountability for or be a deterrent to gross violations of human

 

rights, or otherwise promote—

 

(i)    

compliance with international human rights law, or

 

(ii)    

respect for human rights,”

 

Member’s explanatory statement

 

This amendment makes clear that sanctions regulations can be made for the purpose of preventing,

 

or in response to, a gross human rights abuse or violation.

 

Sir Alan Duncan

 

Helen Goodman

 

Anneliese Dodds

 

11

 

Clause  1,  page  2,  line  12,  leave out “and human rights”

 

Member’s explanatory statement

 

This amendment is consequential on Amendment 10.


 
 

Notices of Amendments: 27 April 2018                  

20

 

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

 
 

Sir Alan Duncan

 

Helen Goodman

 

Anneliese Dodds

 

12

 

Clause  1,  page  2,  line  16,  leave out “human rights,”

 

Member’s explanatory statement

 

This amendment is consequential on Amendment 10.

 

Alison Thewliss

 

2

 

Clause  1,  page  2,  line  17,  at end insert—

 

“(i)    

further the prevention of organised crime, or

 

(j)    

further the prevention of human trafficking.”

 

Alison Thewliss

 

32

 

Parliamentary Star - white    

Clause  1,  page  2,  line  17,  at end insert—

 

“(i)    

further accountability for, or act as a deterrent to, the commission of a

 

gross human rights abuse or violation.”

 

Member’s explanatory statement

 

This amendment would enable sanctions to be made for the purpose of preventing, or in

 

response to, a gross human rights abuse or violation.

 

Alison Thewliss

 

33

 

Parliamentary Star - white    

Clause  1,  page  2,  line  35,  at end insert—

 

“(5A)    

In this section, conduct constitutes “the commission of a gross human rights

 

abuse or violation” if each of the following three conditions is met.

 

(5B)    

The first condition is that—

 

(a)    

the conduct constitutes the torture of a person who has sought—

 

(i)    

to expose illegal activity carried out by a public official or a

 

person acting in an official capacity, or

 

(ii)    

to obtain, exercise, defend or promote human rights and

 

fundamental freedoms, or

 

(b)    

the conduct otherwise involves the cruel, inhuman or degrading

 

treatment or punishment of such a person.

 

(5C)    

The second condition is that the conduct is carried out in consequence of that

 

person having sought to do anything falling within subsection (2)(a)(i) or (ii).

 

(5D)    

The third condition is that the conduct is carried out—

 

(a)    

by a public official, or a person acting in an official capacity, in the

 

performance or purported performance of his or her official duties, or

 

(b)    

by a person not falling within paragraph (a) at the instigation or with the

 

consent or  acquiescence—

 

(i)    

of a public official, or

 

(ii)    

of a person acting in an official capacity, who in instigating the

 

conduct, or in consenting to or acquiescing in it, is acting in the

 

performance or purported performance of his or her official

 

duties.

 

(5E)    

Conduct that involves the intentional infliction of severe pain or suffering on

 

another person is conduct that constitutes torture for the purposes of subsection

 

(2)(a).


 
 

Notices of Amendments: 27 April 2018                  

21

 

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

 
 

(5F)    

It is immaterial whether the pain or suffering is physical or mental and whether it

 

is caused by an act or omission”.

 

Member’s explanatory statement

 

This amendment, which is consequential on Amendment 32, would define what constitutes the

 

commission of a gross human rights abuse or violation. The commission of a gross human rights

 

abuse or violation would include the torture of a person who had sought to expose the illegal

 

activity of a public official, or the torture of a person who had sought to defend human rights or

 

fundamental freedoms, by a public official or a person acting in an official capacity.

 

Sir Alan Duncan

 

23

 

Clause  1,  page  2,  line  38,  after “to” insert “17, (Enforcement: goods etc on ships),

 

(Goods etc on ships: non-UK conduct) and”

 

Member’s explanatory statement

 

This amendment ensures that the reference in Clause 1(6) to clauses by virtue of which

 

supplemental provision can be made by sanctions regulations includes NC15 and NC16.

 

Sir Alan Duncan

 

Helen Goodman

 

Anneliese Dodds

 

13

 

Clause  1,  page  2,  line  38,  at end insert—

 

“(6A)    

In this Act any reference to a gross violation of human rights is to conduct

 

which—

 

(a)    

constitutes, or

 

(b)    

is connected with,

 

    

the commission of a gross human rights abuse or violation; and whether conduct

 

constitutes or is connected with the commission of such an abuse or violation is

 

to be determined in accordance with section 241A of the Proceeds of Crime Act

 

2002.”

 

Member’s explanatory statement

 

This amendment establishes that “gross violation of human rights” includes the torture of a

 

person, by a public official or a person in an official capacity, where the tortured person has

 

sought to expose the illegal activity of a public official or to defend human rights or fundamental

 

freedoms.

 

Sir Alan Duncan

 

14

 

Clause  1,  page  3,  line  3,  after first “to” insert “(e), (ea) and (f) to”

 

Member’s explanatory statement

 

This amendment is consequential on Amendment 10.

 


 

Sir Alan Duncan

 

15

 

Clause  2,  page  3,  line  26,  after “to” insert “(e), (ea) and (f) to”

 

Member’s explanatory statement

 

This amendment is consequential on Amendment 10.

 



 
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Revised 27 April 2018