UK Parliament / Open data

Economic Crime (Transparency and Enforcement) Bill

I would be happy to debate with the noble Lord. When I queried this, my information was that Germany potentially has something similar, but nobody else. I am happy to exchange letters with him about numbers, but that is not the information I have.

Before I move on, perhaps I may correct something I said on the first grouping—which will teach me to pluck numbers from memory rather than consulting my notes. The correct figure is that there are 30,000 overseas entities registered in the UK owning approximately 95,000 properties. I think I may have said that the other way round. I slightly disagree with the noble Lord, Lord Sikka. The vast majority of those are perfectly legitimate entities. We are an open trading environment and welcome investment from all over the world. International companies owning headquarters in the UK do so perfectly legitimately. The vast majority of these entities are legitimate. A small minority are not, and they are the ones we seek to catch in this register, but we must be fair to the vast majority which are perfectly legal, above board and just seeking to use the UK to do business, which we encourage.

Let me also pick up the points made by the noble Baroness, Lady Jones. Although I am grateful that she is supporting the government amendments—I will write that down for posterity, because I am not sure it will happen again—we did not just pluck the dates of 1999 for England and Wales and 2014 for Scotland out of thin air. We did not just sit there and think what date we would make it retrospective to. Those were the dates of incorporation when that was required by the Land Registry, so it is appropriate to go back to them. Northern Ireland has never required this, so it is impossible to retrospectively apply the provisions there. I hope she will accept that we did not just make these dates up; they are put in place for a reason.

5.45 pm

Moving on to the amendments, let me start with those tabled by my noble friend Lord Agnew and the noble Lord, Lord Sikka. These amendments broadly deal with additions to the required information that needs to be provided at the point of application in respect of beneficial owners and managing officers.

Amendment 3 in the name of my noble friend Lord Agnew would add to Clause 4 a provision to enable the registrar, on an application for registration, to request further information to be provided in a timely manner where there appear to be material omissions or suspected false statements. This amendment also provides that an application may not be accepted unless the registrar is satisfied that any request for further information has been adequately addressed. Amendments 5 and 13 would provide that registrable beneficial owners and managing officers also have to provide any former names. Amendments 8, 12 and 14 relate to information that should be provided by managing officers on sanctions that apply or any criminal convictions that are held.

Although I understand the motives for these amendments, it is fair to point out that a rigorous amount of information is already required for application, as outlined in Schedule 1. The register of overseas entities is itself designed to increase transparency. The information required on beneficial owners is closely based on the existing requirements for information required on people with significant control in the UK company regime.

Again, it is worth remembering that the majority of entities registering will be legitimate, and we have to balance the burden of this reporting for them with the benefits that the Bill will deliver. That is a balance that we have sought to strike throughout the development of the register.

Type
Proceeding contribution
Reference
820 cc55-6 
Session
2021-22
Chamber / Committee
House of Lords chamber
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