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Commons urgent question about Global Laundromat revelations - Politics live Commons urgent question about Global Laundromat revelations - Politics live
(35 minutes later)
1.39pm GMT
13:39
Urgent question on Global Laundromat revelations - Verdict
And here is a verdict on the UQ from my colleagues Luke Harding and Nick Hopkins.
Labour politicians were clearly unimpressed by assurances from Simon Kirby that the government has got a grip on money-laundering. It hasn’t. Today’s Guardian Laundromat story shows how profound the problem is: $740m flowed through UK banks and nobody noticed.
Kirby said that the National Crime Agency (NCA) was investigating. But when we went to see the NCA last week it admitted Moscow was refusing to cooperate. Without active help from Russian authorities it’s difficult to see how detectives can arrest money-launderers or stop similar schemes in future.
For the moment, then, it’s easy for anyone to set up a UK limited company and use it for criminal purposes. This point was made by the SNP’s Roger Mullin who noted - correctly - that limited partnerships were at the heart of the Laundromat scandal. One of the companies we found, Seabon Limited, claimed its assets were £1. In fact, it was involved in transactions worth $9bn.
The most intriguing question came from Labour’s Ben Bradshaw who wanted to know if any of the Laundromat billions had gone to fund the Trump campaign or Leave.EU. We don’t know the answer. But there are clear signs that some of the money has gone to support pro-Kremlin think tanks and parties across Europe.
1.37pm GMT
13:37
Urgent question on Global Laundromat revelations - Summary
Recently it was revealed that Simon Kirby, the City minister, had been stripped of his responsibility for Brexit-related matters. A City source told the Sun that Kirby was someone with “no knowledge, no experience and no apparent interest in the City”. Kirby did not do much to restore his reputation with his response to today’s UQ. He floundered badly, prompting unusually harsh criticism from the oppositon.
Here are the key points.
Labour accused the government of “complacency and inaction” over money-laundering. John McDonnell, the shadow chancellor, told MPs after hearing Kirby’s opening statement:
I don’t believe the minister recognises the immense gravity of the situation we are facing and that statement reflected, I believe, a complacency on behalf of the government itself ... Money-laundering through London and elsewhere threatens the financial stability of our economy ... It obvious from today’s revelations that the current arrangements are not working. There is widespread, organised and sophisticated criminal activity ... Urgent action is needed by the government to protect the standing of our finance sector and indeed protect our economy. Complacency and inaction is not good enough.
Later other Labour MPs criticised Kirby very strongly. John Mann said he gave the impression of being over-promoted. (See 12.53pm.) Angela Eagle said he was “appallingly complacent”. (See 1.04pm.) Rushanara Ali also said his performance was “appalling”. (See 1.08pm.)
McDonnell called for an inquiry into what measures might be needed to strengthen money-laundering laws.
Kirby said the latest Guardian allegations would be investigated.
The Financial Conduct Authority and the National Crime Agency take any such allegations seriously and will investigate closely whether recent information from the Guardian newspaper regarding money laundering from Russia, or indeed any other media source, would allow the progression of an investigation.
He claimed the government was doing “more than any other” to tackle money-laundering.
This government already does more than any other to tackle the global threat of money-laundering. Since 2010 we have already seized £1.bn in illegal funds and put hundreds of millions more beyond the reach of criminals. We have set up the Panama Papers taskforce, we have hosted the global anti-corruption summit last year and now we are preparing the most significant changes to our anti money-laundering and terrorist finances regime in over a decade ... We are determined to make the UK the most difficult place in the world for international crime networks to channel their finances and we won’t relent in our efforts to do that.
Updated
at 1.45pm GMT
1.37pm GMT
13:37
Jessica Elgot
On Tuesday morning, Theresa May told a cabinet meeting that the triggering of Article 50 next Wednesday would be a “historic event and will precipitate a shift in our role in the world see Britain begin a bold new chapter as a prosperous, open and global nation.”
Number 10 said the prime minister had told cabinet ministers that the letter would be “one of the most important docs in our country’s recent history and will start to deliver the result of the referendum and set the tone for our new relationship with Europe and the world.”
The content has not been finalised and was not discussed, the spokesman said. A meeting of cabinet will be held next Wednesday, the day of notification, to discuss the letter, he said.
During the meeting, May stressed her desire to come to a swift agreement on the rights of EU citizens living in the EU and those of British citizens in the EU, the spokesman said, as well as praising the work of the cabinet sub-committee on exit and trade, calling it a “strong platform” from which to start negotiations.
May said she expected negotiations to be “smooth and orderly, giving certainty to individuals and businesses and allowing us to make preparation that will see an independent UK prospering outside the EU.”
A white paper on the great repeal bill, which will migrate existing EU laws directly into British law after the UK leaves the EU, is expected to be published by David Davis shortly after the letter is sent next week.
1.08pm GMT1.08pm GMT
13:0813:08
Labour’s Rushanara Ali says Philip Hammond, the chancellor, should have been here. She says Kirby’s answers have been “appalling”.Labour’s Rushanara Ali says Philip Hammond, the chancellor, should have been here. She says Kirby’s answers have been “appalling”.
Kirby says he is sorry that Ali thinks that.Kirby says he is sorry that Ali thinks that.
And that’s it. The UQ is over. I will post a summary shortly.And that’s it. The UQ is over. I will post a summary shortly.
1.06pm GMT1.06pm GMT
13:0613:06
Labour’s Kerry McCarthy says the Russian authorities are refusing to cooperate with the National Crime Agency. What is the Foreign Office doing about this?Labour’s Kerry McCarthy says the Russian authorities are refusing to cooperate with the National Crime Agency. What is the Foreign Office doing about this?
Kirby says he thinks the FCA are in contact with the Foreign Office about this. He says if there is new information, the FCA and the NCA will act on it.Kirby says he thinks the FCA are in contact with the Foreign Office about this. He says if there is new information, the FCA and the NCA will act on it.
1.04pm GMT1.04pm GMT
13:0413:04
Here is Labour’s Angela Eagle, who asked Kirby a question earlier (see 12.51pm), responding to his performance.Here is Labour’s Angela Eagle, who asked Kirby a question earlier (see 12.51pm), responding to his performance.
Appalling complacent blinkered response from the Economic Secretary to today's money laundering allegations in @guardian #JustnotgoodenoughAppalling complacent blinkered response from the Economic Secretary to today's money laundering allegations in @guardian #Justnotgoodenough
1.03pm GMT1.03pm GMT
13:0313:03
Labour’s Ian Austin says the home affairs committee has estimated that £100bn is laundered through the UK. But only 0.17% of it gets detected. What is necessary to make the authorities do their jobs?Labour’s Ian Austin says the home affairs committee has estimated that £100bn is laundered through the UK. But only 0.17% of it gets detected. What is necessary to make the authorities do their jobs?
Kirby says the FCA and the NCA are independent. They do investigate, he says.Kirby says the FCA and the NCA are independent. They do investigate, he says.
UpdatedUpdated
at 1.04pm GMTat 1.04pm GMT
1.01pm GMT1.01pm GMT
13:0113:01
The Lib Dem’s Greg Mulholland asks what will happen if the government secures its aim of turning the UK into a tax haven.The Lib Dem’s Greg Mulholland asks what will happen if the government secures its aim of turning the UK into a tax haven.
Kirby says that is not the chancellor’s policy.Kirby says that is not the chancellor’s policy.
1.00pm GMT1.00pm GMT
13:0013:00
Labour’s Catherine McKinnell asks if Kirby accepts that the law on money-laundering needs to be tightened.Labour’s Catherine McKinnell asks if Kirby accepts that the law on money-laundering needs to be tightened.
Kirby says the Ministry of Justice will have heard what McKinnell said.Kirby says the Ministry of Justice will have heard what McKinnell said.
12.58pm GMT12.58pm GMT
12:5812:58
Labour’s Ben Bradshaw asks if any laundered money was donated to the leave campaign or to the Trump campaign.Labour’s Ben Bradshaw asks if any laundered money was donated to the leave campaign or to the Trump campaign.
Kirby says he is not aware of any donations of that kind.Kirby says he is not aware of any donations of that kind.
12.58pm GMT12.58pm GMT
12:5812:58
Philip Hollobone, a Conservative, asks how many money launderers have been sent to prison in the past five years.Philip Hollobone, a Conservative, asks how many money launderers have been sent to prison in the past five years.
Kirby says he does not know, but will write to Hollobone with an answer.Kirby says he does not know, but will write to Hollobone with an answer.
UpdatedUpdated
at 1.01pm GMTat 1.01pm GMT
12.56pm GMT12.56pm GMT
12:5612:56
Jonathan Djanogly, a Conservative, says Russians are allowed into the UK on the assumption they will do nothing wrong.Jonathan Djanogly, a Conservative, says Russians are allowed into the UK on the assumption they will do nothing wrong.
Kirby says the authorities will address any action that needs to be taken to tackle this problem.Kirby says the authorities will address any action that needs to be taken to tackle this problem.
UpdatedUpdated
at 12.58pm GMTat 12.58pm GMT
12.54pm GMT
12:54
Labour’s Helen Goodman asks if Kirby has discussed this with George Osborne, who intervened with the US authorities to stop HSBC being prosecuted in 2012.
Kirby says he has not had that conversation.
12.53pm GMT
12:53
Labour’s John Mann asks Kirby to counter the impression that he has been promoted beyond his competence by telling MPs which British banks have been accused of money laundering, and what he has learned from reading those reports.
John Bercow, the Speaker, says the question was discourteous, but not disorderly.
Kirby says a number of firms have been investigated.
Updated
at 12.56pm GMT
12.51pm GMT
12:51
Angela Eagle, the former shadow business secretary, says Kirby has shown “real complacency” about this scandal. His answers are not good enough.
Kirby rejects this, he says. We have world-leading regulation and world-leading financial services.
Updated
at 12.56pm GMT
12.49pm GMT
12:49
The SNP’s Roger Mullin says at the heart of this scandal is the use of limited partnerships.
He says on Friday the business department closed its review of limited partnerships. Will that now be reopened so that Mullin and others can submit fresh evidence, based on the latest revelations?
He says it is hard to believe the UK is a world leader.
And he says the government should do more to encourage whistleblowing.
Kirby says, in this case, he does not think limited partnerships were involved. But he says any MP is free to write to the secretary of state.
We are world leaders in this, he says.
Updated
at 12.57pm GMT
12.47pm GMT
12:47
Kirby is responding to McDonnell.
He rejects the charge of complacency.
And he suggests that it would not be appropriate for the government to tell the FCA and the NCA what they must investigate.
12.46pm GMT
12:46
McDonnell accuses government of “complacency and inaction” over money-laundering
John McDonnell is responding.
He says he does not think Kirby realises the seriousness of these allegations. He accuses him of being complacent.
He says HSBC has previously faced money-laundering allegations.
Money laundering threatens the stability of our economy, he says.
Can Kirby give MPs more details about what steps are being taken to address this?
Could there be criminal proceedings? This is in effect a criminal network, says McDonnell.
He says the main risk comes from inactivity. The government should ensure British banks are clean and fit for purpose.
The Financial Conduct Authority stresses the need for banks to self-police. It is obvious this is not happening, he says.
He asks the government to commit to an inquiry into this.
And, when the government owns banks, especially RBS, can it ensure taxpayers its banks are not involved in criminal activity.
McDonnell accuses the government of “complacency and inaction” over money laundering.
Updated
at 12.51pm GMT
12.42pm GMT
12:42
John McDonnell asks for a statement.
Simon Kirby, the City minister, is responding.
He says he wants the UK to take a lead in the drive against money laundering. This is to keep Britons safe.
He says the authorities take any such allegations seriously. The allegations in the Guardian will be investigated, he says.
He says the government is doing more than any other to tackle the threat posed by money laundering. He lists measures taken by the government and says reforms being introduced are the most serious for a decade.
He says the UK is working closely with international partners to address this problem.
We are determined to make the UK the most difficult place in the world for international crime networks to channel their money, he says.
Updated
at 12.48pm GMT
12.37pm GMT
12:37
Here is our latest story on this topic.
National Crime Agency says investigations into Russian money laundering not going anywhere because Moscow won't help https://t.co/zOs1WxIoFG
12.36pm GMT
12:36
John McDonnell, the shadow chancellor, is asking the urgent question.
12.24pm GMT
12:24
Here is the Guardian’s main story yesterday about the Global Laundromat scheme.