My Lords, I thank my noble and learned friend Lord Garnier for raising this issue in Amendment 112. Fraud and other economic crimes have a profound impact on their victims, which is why this Government have been very clear about their commitment to tackle such crimes and to support victims.
The measures in the Bill are designed to improve the experiences of all victims of crime, including economic crimes. One way it seeks to do so is by improving the oversight of service providers’ delivery of all victims’ code entitlements. For victims of fraud in particular, under the victims’ code, all victims who have suffered harm, including economic harm, as a direct result of a crime are entitled to information about compensation and, where eligible, to be told how to claim it. The Government take the compensation of victims of economic crime very seriously, as it is crucial for limiting the harms of these soulless crimes. We are taking active steps to improve reimbursement and compensation routes for victims to ensure that, whenever possible, funds are taken from criminals and returned to victims.
Victims’ interests continue to be a priority issue for the UK. New powers introduced by Part 4 of the Economic Crime and Corporate Transparency Act allow applications for stolen crypto assets or funds to be released to victims at any stage of civil forfeiture proceedings. Work is ongoing to implement these reforms in order to ameliorate the negative impacts of criminal conduct, including economic crime.
In cases where there are overseas victims, as the noble and learned Lord mentioned, the Serious Fraud Office, the Crown Prosecution Service and National Crime Agency compensation principles have committed law enforcement bodies to ensuring that compensation
for overseas victims of economic crime is considered in every relevant case, and that the available legal mechanisms are used whenever appropriate to secure it. His Majesty’s Government are also fully committed to identifying potential victims and utilising suitable means to return money and/or compensate victims in line with international provisions, per the Government’s transparent framework for asset returns.
As a signatory to the UN’s Convention against Corruption, the UK places great importance on the recovery and return of the proceeds of corruption to those affected by bribery, embezzlement of public funds, money laundering, trading in influence and other abuses of official functions. The UK is obligated to return funds where the conditions for mandatory return are met. However, it also exercises its discretion to return funds in appropriate cases when it is not otherwise mandated to do so.
On the point raised about UK courts being able to award compensation, this requires a co-ordinated, multilateral approach on how to find resolutions for victims. The fraud strategy sets out ambitions to drive global action on tackling fraud. We are developing stronger partnerships with our allies to raise the profile of this transnational threat, improve our understanding of how it manifests globally, share best practice and lead a co-ordinated, multinational response. This engagement will build towards a global fraud summit in early 2024, where key partners will come together to spearhead a co-ordinated diplomatic and law enforcement approach to tackling global fraud.
Measures in the Criminal Justice Bill, which is progressing through the other place, also considers victims’ interests. Further changes are being made to the confiscation regime, under the Proceeds of Crime Act, to enable swifter resolution of proceedings and improve enforcement planning, allowing victims to be compensated earlier and more fully. I am aware that this does not fully address many of the excellent ideas raised by the noble and learned Lord, which were supported by my noble friend, Lord Sandhurst, and I would suggest a meeting to investigate them further, if that was acceptable.
As I have set out, extensive work is already being undertaken to strengthen the rights of victims through legislative vehicles which are still undergoing implementation. I therefore do not believe it is appropriate for a legislatively required review to be introduced at this time.
On Amendment 116, tabled by the noble Baroness, Lady Brinton, the Government are clear that it is extremely important that victims are aware of their rights, particularly when interacting with criminal proceedings. The current victims’ code sets out in plain language entitlements for victims of crime, including being provided with information about compensation. I hope it is helpful if I provide some information about criminal compensation orders. Criminal courts in England and Wales are, by law, required to consider compensation in all cases involving personal injury, loss or damage resulting from the offence. Where the court chooses not to impose such an order, it must provide reasons. In determining whether to make a compensation order, and the amount to be paid under such an order,
the court must consider the financial circumstances of the offender—as alluded to by the noble Lord, Lord Ponsonby—to strike a balance between seeking reparation and not imposing debts that are unrealistic or unenforceable. In line with the sentencing guidelines issued by the independent Sentencing Council, if the victim does not want compensation, this should be made known to the court and respected. However, it is right that the decision whether to award compensation and the amount of any award is a matter for the court. In response to the noble Lord, Lord Marks, and his point about the victim’s right to have a court hear their view on compensation, I think that is an interesting idea to investigate, and it would be good to have a meeting.
In addition to compensation orders, the statutory Criminal Injuries Compensation Scheme 2012 exists to compensate victims who suffer a serious physical or mental injury as the direct result of a violent crime, including physical and sexual assault and domestic violence. Payments under the government-funded scheme can never fully compensate for the injuries suffered but are a recognition of public sympathy.
On expenses and property, victims already have an entitlement under the current victims’ code right 10 to be paid expenses. Victims can claim expenses from the Crown Prosecution Service if they have to attend court to give evidence, including, for example, for travel, childcare and loss of earnings. Right 10 in the current code also sets out that the police should return any property taken as evidence as soon as it is no longer required. The Government do not currently have plans for victims to be paid compensation from central funds. That is because compensation orders are paid directly from the offender, requiring them to make reparation to the victim for any loss, personal injury or damage caused by the offence. The decision whether to make a compensation order in a particular case is a matter for the court, and it has a range of powers for the recovery and enforcement of financial impositions. With the permission of the noble Baroness, I would like to write to give further detail on what actions the Government are taking to improve the enforcement of such compensation orders.
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As the noble Baroness will be aware, victims’ cases are prosecuted by the Crown, but we recognise that in some cases legal advice may be helpful—for example, when considering disclosure requests. Therefore, to understand better whether independent legal advice and representation is required, and how that might work in practice, we have asked the Law Commission to explore the merits of independent legal advice as part of its review. This follows a consultation on the use of evidence in sexual prosecutions last year, and we look forward to reviewing the findings on this important issue.
I hope this provides my noble and learned friend Lord Garnier the reassurance that is needed to withdraw this amendment.