I thank the right hon. Gentleman for his support. It is a sobering fact that ISIL alone made $35 billion to $45 billion between September 2013 and September 2014. There is no doubt that that has boosted its capability. Simply put, money paid to terrorists equals an increased threat to the safety of UK citizens. The right hon. Gentleman understands that, as he made clear in his speech.
We consulted leading representatives of the insurance industry and its regulators, the police and operational and international partners about the measure. We have had constructive discussions with the industry. This is a niche part of the wider insurance market and it makes up only a small part of the business of those insurers. Insurance companies have been clear that their policies exclude reimbursement of ransoms paid to proscribed groups in any case. The point of the measure is to make that absolutely clear and put it beyond doubt. Section 17 of the Terrorism Act 2000 centres on what constitutes arrangements and we are seeking to provide complete
clarity. The measures are framed in the context of terrorism, although there are various insurance policies that operate in the market, because they are intended to prevent money going to terrorist groups.
The right hon. Gentleman asked about extraterritorial jurisdiction. The measures are intended to govern insurance companies based in the UK, so that they cannot offshore those payments; if they have some other insurance company with links to the UK, that company will be caught by the measures. It is therefore important that the legislation is framed in that manner.
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There is no suggestion that UK insurance companies have been paying or facilitating the payment of terrorist ransoms. The UK insurance industry conducts itself professionally and with due regard to UK legislation and regulations. However, we do not want insurance companies to be put in a position in which they reimburse payments that have gone to terrorist groups, which does represent a real risk. It is important that we underline the due diligence that both insurance companies and their customers should undertake in such situations.
We believe that this legislation will give a clear message that kidnap for ransom is deplorable. The focus of the Bill is countering terrorism, and ransom payments can provide terrorist groups with huge injections of money, which they can then use in threatening the public. That is why the measures are required.
Question put and agreed to.
Clause 34 accordingly ordered to stand part of the Bill.
Clause 35 ordered to stand part of the Bill.
Schedule 5 agreed to.