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We are live tweeting the proposed "failure to prevent" amendment to the Financial Services Bill. It would introduce a new corporate criminal offence for companies/bodies regulated by the FCA for faciliating or failing to prevent fraud, money laundering & false accounting
The Amendment is being debated in the Commons now
Read our written evidence to the Bill committee on why this ammendment is important here:
https://publications.parliament.uk/pa/cm5801/cmpublic/FinancialServices/memo/FSB06.htm
https://publications.parliament.uk/pa/cm5801/cmpublic/FinancialServices/memo/FSB06.htm
@kevinhollinrake rightly points out how US authorities issue a far greater number/value of fines compared to the UK.
The US has robust corporate liability laws allowing them to prosecute the big banks - such laws must be brought to the UK to effectively tackle financial crime.
The US has robust corporate liability laws allowing them to prosecute the big banks - such laws must be brought to the UK to effectively tackle financial crime.
@margarethodge "Britian has prided itself on honesty and integrity in financial services, but governments actions and inactions has let corruption flourish. The NCA estimates that £100 billion laundered through the UK annually...
... "The banks and those who run them often get away scott free. This new ammendment gives law enforcement a powerful tool in fighting money laundering and fraud.
The argument is overwhelming, everyone agrees existing powers and weak and ineffective ...
The argument is overwhelming, everyone agrees existing powers and weak and ineffective ...
... "we are way our international competitors. The British public hate feeling there’s one rule for the powerful and another for the rest. It's foolish and wrong to think that as we leave the EU we can create a strong and powerful financial sector based on corruption and fraud ..
@margarethodge brings up the Standard Charted scandal, where she says "most of the outrageous behaviour took place in the UK and most of the fines in the US."
The US fined the bank $947 million, the UK FCA fined the bank £102 million.. The FCA's second highest ever fine...
The US fined the bank $947 million, the UK FCA fined the bank £102 million.. The FCA's second highest ever fine...
... "In 2019, the US authorities issued $1.67 billion in fines for financial crimes, the UK authorities took less than £300 million.
The government might promote oursourcing, but does that mean outsorucing of financial enforcement to America? ...
The government might promote oursourcing, but does that mean outsorucing of financial enforcement to America? ...
... "The SFO director has called for a "failure to prevent" corporate liability reform, it was top of her wishlist.
When government called for evidence on corporate liability, 3/4 of respondents called for tougher enforcement, most of whom were private companies and law firms"
When government called for evidence on corporate liability, 3/4 of respondents called for tougher enforcement, most of whom were private companies and law firms"
... "Ministers are kicking proposals into the long grass, angering the public and damaging the intergrity of the financial services sector
@nigelmills now speaks "It was in the Conservative 2015 Manifesto to introduce failure to prevent rules.
It actually works, it stops corporations and their executives from turning a blind eye...
It actually works, it stops corporations and their executives from turning a blind eye...
"As we embark on our vision of a global Britian as we leave the EU, we want to be the cleanest in the world, not the dirtiest. We want to say this behaviour is not tolerated here, not only to those who did it, but those who allow it...
@nigelmills makes his final point:
"If we really want to set a good example to the world, the first thing would not to be diverge with EU money laundering rules... this is the right thing to do and we should be leading on it"
"If we really want to set a good example to the world, the first thing would not to be diverge with EU money laundering rules... this is the right thing to do and we should be leading on it"
@nigelmills says the UK should be "more beacon than buccaneer", we at Spotlight couldn't agree more.
@johnmcdonnellMP accuses the FCA of being "asleep at the wheel" and notes how the US authorities see the UK as a "high risk jurisdiction" and calls for a "cleaning up of the stables"
Now Andrew Mitchell, co-chair of the Anti-Corruption and Responsible Tax APPG, speaks:
"This ammendment goes with the grain of government policy and we should send a signal to government the importance of pursing this agenda...
"This ammendment goes with the grain of government policy and we should send a signal to government the importance of pursing this agenda...
... "The evidence of the Panama Papers showed without any doubt the sophistication of financial advisors, there is an inequality of arms, they are ahead of the financial authorities. This new clause would clamp down on the facilitation of economic crime...
"The reforms to companies house led the world, the trouble is companies house has become a library rather than an investigator and what it needs is more resources to become a truly effective tool in fighting economic crime."
@KennyMacAskill former Scottish Cabinet Minister for Justice says "The challenge in dealing with corporate crime is the lack of legislation available for law enforcement...
Quoting Woody Guthrie he says "'There's those who'll rob you with a six-gun and those with a fountain pen.' I know where the real crime is...
@KennyMacAskill finishes by saying "corporate criminals go unpunished - they must be held to account and this amendment brings that.
We need to keep up with corporate standards: fraud and money laundering should be dealt with as strictly as we do with bribery and tax evasion."
We need to keep up with corporate standards: fraud and money laundering should be dealt with as strictly as we do with bribery and tax evasion."
@neill_bob says "I have sympathy for clause 4 but I don’t want to preempt the work of the law commission. That said government does need to act more swiftly and urgently to reform corporate crime liability. The Justice Committee has heard compelling evidence on this."
"Both the current and former directors of the SFO have noted the deficiency with the current criminal liability as have at least two former AGs. I hope after the law commission report, we will move swiftly to adopt this as we lag behind other jurisdictions in this regard."
It was really encouraging to see such enthusiatic cross-party support for @margarethodge "failure to prevent" ammedment. Thanks to @kevinhollinrake, @nigelmills, @KennyMacAskill, @neill_bob & Andrew Mitchell for their passionate words of support in todays debate.
