Stephen Doughty

The right hon. Gentleman is right about the legal and constitutional position. My position is that I want to work very closely and co-operatively, and that approach has succeeded in producing very welcome progress over the past year and a half. That is the way that I always try to approach our relationship with our friends in the overseas territories and the wider family. However, he is absolutely right, and the strength of feeling today should leave nobody in any doubt about the wider impact of the challenge and the concern, among many right hon. and hon. Members, about its direct impact in their communities. As I said, this is about the direct impact on citizens in the overseas territories themselves, as well as in the wider world. I do not rule out any option in the future, but I hope that at first we can keep to and deliver on the commitments that were made at the Joint Ministerial Council last year. Some of those have been met; some have not. I have been very candid about that with the current president of the UK Overseas Territories Association, and have had very direct conversations with Premiers and others. My hon. Friend the Member for Bolton West asked three specific questions. He asked about a visit with Baroness Hodge. I do not want to divulge our personal conversations, but he can be absolutely sure that we have met to discuss her findings, which she shared in great candour, as one would expect. I will take those on board. My expectation is that we will discuss this matter at the Joint Ministerial Council. The Premiers and elected representatives understand our position. Our expectation on fully public registers of beneficial ownership has not changed; nor has our expectation about the functioning of legitimate interest access registers in the meantime. I can assure my hon. Friend and others that we are engaging in forensic detail on how each of those works. For example, I had constructive conversations with the Premier of the Cayman Islands on my recent visit about the progress that it is making, and I expect further improvements in the months to come. We follow these matters extremely closely and offer technical support and other advice on how we can work together co-operatively to deliver the most effective registers. For a register to be in place, with the necessary legislation, is all well and good, but if it does not function effectively because of fees or other barriers to its usability in practice, that is a serious concern. Obviously, there are territories that are yet to introduce such steps; the BVI, in particular, was mentioned. My hon. Friend the Member for Bolton West asked whether I would meet his colleague from the AUGB and I would be happy to do that. The links to Ukraine that many right hon. and hon. Members mentioned are examples of why this matters. The Government’s recent action on Cambodian scam centres was mentioned. That was a shocking scam involving fraud against our constituents up and down this country, which involved property in London and involved a UK overseas territory, the BVI. I know the Premier of the BVI shares our concern about tackling that type of activity. It is in all our interests that we have the transparency to enable more of these scams—more of this shocking activity—to be exposed. Many links were made to property, including by my hon. Friend the Member for Kensington and Bayswater (Joe Powell). I have seen examples in my own constituency of Cardiff South and Penarth, where residents faced with issues relating to fire and building safety have been unable to work out the original beneficial owners of large apartment buildings so that they can take appropriate action to ensure the safety of the buildings and their residents. Such issues impact every aspect of all our daily lives, including, as I said, in the overseas territories. The BVI was mentioned extensively, so I want to be clear that the Government recognise some of the challenges. In August, a vessel owned by a BVI-registered entity transferred 2 million barrels of Iranian oil, which was delivered to China. Also this year, BVI-registered entities were discovered in the corporate chains of at least three sanctioned Russian oligarchs who own £35 million-worth of UK property, undoubtedly some of it in constituencies represented in this room. BVI-registered entities accounted for over 90% of identified suspicious funds invested through OTs into UK property between 2016 and 2024. We also have the challenge of inactive or dissolved BVI companies owning UK property. That creates substantial legal challenges around bona vacantia and ownerless assets, which many of us will have encountered in our constituencies. As was rightly pointed out, in the three decades to 2018 more than 1,100 BVI-registered companies featured in corruption cases around the world. I know the seriousness with which the Premier and the Government there take these issues. I want to work with them in addressing them, because they impact all of us and they impact the BVI’s reputation, but to do that we need transparency and progress. Colleagues made many important contributions and I will not be able to respond to them all in the time I have today, but I note the serious concerns about Mr Abramovich raised by my hon. Friend the Member for St Helens South and Whiston (Ms Rimmer). I am not able to comment on individual tax matters at the Dispatch Box, but we remain committed to ensuring that the proceeds of the sale of Chelsea reach humanitarian causes in Ukraine. We are deeply frustrated that it has not yet been possible to reach an agreement with Mr Abramovich and his representatives. The door for negotiations remains open, but we are fully prepared to pursue the matter through the courts if required, as we have said on a number of occasions recently. Important points were raised, including by my hon. Friend the Member for Salford (Rebecca Long Bailey), about HMRC. I am sure she will be able to raise her points with the relevant Ministers, but what she said about why transparency principles matter was very powerful. My hon. Friend the Member for Bournemouth East (Tom Hayes) spoke powerfully about the impact on public services, on housing and on the high street, and about the challenges for our constituents. We have touched on all those points of nexus during the debate. Financial secrecy is the oxygen that allows illicit finance to thrive and sanctions breaches to go undetected; it creates blind spots. It is, of course, a transnational problem. Dirty money pushes up property prices, making it harder for people to buy homes. Overseas corruption and illicit finance undermine economies, prop up kleptocratic regimes and threaten democracy. As the right hon. Member for Sutton Coldfield made clear, it is estimated that African countries alone lose around $90 billion a year in illicit capital flows. That is more than they receive in development assistance.