London Daily

Focus on the big picture.
Friday, Sep 05, 2025

Government denies claims it has scrapped crucial economic crimes bill

Government denies claims it has scrapped crucial economic crimes bill

Ministers criticised for not tackling London’s reputation as Russian money-laundering hub

The government was forced to deny claims that it had scrapped a crucial economic crime bill on Wednesday, as MPs from across the house rounded on ministers for failing to tackle the UK capital’s “Londongrad” reputation as a money-laundering hub used by Russian oligarchs, criminals and kleptocrats.

The scathing comments in the House of Commons follow the shock resignation of junior minster Lord Agnew on Monday, who revealed in his departing letter that the government had only last week made a “foolish” decision to kill off the bill during the next parliamentary year.

As recently as December, prime minister Boris Johnson promised a “year of action” on fraud at a summit organised by US president Joe Biden, saying the government would target “the illicit finance that undermines democracy everywhere, strengthening our law enforcement powers to go after the criminals who abuse our corporate structures”.

Agnew had also hit out at the government for failing to take action against Covid loan fraud, which critics have said could cost the taxpayer billions of pounds. The damning accusations pushed Rishi Sunak to assure that the government would “do everything we can” to recover stolen funds. “I’m not ignoring it, and I’m definitely not ‘writing it off,’” the chancellor said on Twitter on Wednesday.

Figures from HMRC show an estimated £5.8bn has been lost due to fraudulent claims for furlough and other business relief schemes. Reports suggest HMRC has off £4.3bn stolen of that sum as unrecoverable. However, the government has refused to confirm the figure.


MPs said the economic crime bill was needed to tackle the Covid loan fraud issues raised by Agnew, and the use of London as a money laundering destination by kleptocrats from Russia and other regimes.

Campaigners had been pushing for the bill to be included in the next parliamentary session, which run s from later this year into 2023, and will be announced at the next Queen’s speech. It was expected to include reforms of Companies House, the loosely policed UK company registry, and rules requiring those holding property through offshore shell companies to declare their identities.

Paul Scully, the parliamentary undersecretary for the Department for Business, Energy and Industrial Strategy, was called to the Commons to answer an urgent question on the status of the bill. He said: “There has been nothing pulled at all.” But Scully said no legislation would be put forward before the yet-unscheduled Queen’s speech, which opens a new parliamentary year.

The government has not yet set a date for the speech, but last year held the state opening in May.

It comes as Downing Street considers sanctions against Russia if Moscow follows through on an invasion of Ukraine.

“Up to 50% of money flowing through Russian laundromats – often used for tax avoidance stolen public funds and to launder moneys derived from organised crime – flow through UK shell companies,” said Conservative MP Kevin Hollinrake, who initiated the debate by tabling the urgent question.

“This is not a notional white collar offence,” he said added. “It affects real people in very tangible ways. Terrorists and drug dealers depend on it to launder and legitimise their money through UK banks, companies and properties.”

SNP MP Alison Thewliss urged the government to set a date for the introduction of the economic crime bill, saying the lack of action suggested complacency on behalf of prime minister Boris Johnson’s Cabinet. “Why is it that this government is so unconcerned that the UK is being deemed “Londongrad”, notorious for laundering of dirty money?”

John Penrose, the Conservative MP for Weston-super-Mare also accused the government of moving too slowly. “The well of excuses after three or four years of promising this piece of legislation, or its related pieces, has now run dry. And it is absolutely essential for the credibility of his country and of this government, particularly the time when we have a crisis in Ukraine, and all sorts of Russian oligarchs waiting to move money into this country if they possibly can … that we do not back away from the central piece of legislation,” he added.

Labour MP Chris Bryant said the UK’s rules, as they currently stand, are too “soft touch” and that “if we want to give a strong message to Russia in particular at this moment we’ve got to move swiftly not say ‘oh, I can’t possibly come into what legislation we might be thinking of in the future.’”

But Scully refused to be pulled into speculation about the timing of the bill’s introduction. “What I can’t do is pre-empt what Her Majesty will say in the Queen’s speech,” he said, adding that she would “set out the government’s programming in due course,.”

Newsletter

Related Articles

0:00
0:00
Close
Brand-New $1 Million Yacht Sinks Just Fifteen Minutes After Maiden Launch in Turkey
Here’s What the FBI Seized in John Bolton Raid — and the Legal Risks He Faces
Florida’s Vaccine Revolution: DeSantis Declares War on Mandates
Trump’s New War – and the ‘Drug Tyrant’ Fearing Invasion: ‘1,200 Missiles Aimed at Us’
"The Situation Has Never Been This Bad": The Fall of PepsiCo
At the Parade in China: Laser Weapons, 'Eagle Strike,' and a Missile Capable of 'Striking Anywhere in the World'
The Fashion Designer Who Became an Italian Symbol: Giorgio Armani Has Died at 91
Putin Celebrates ‘Unprecedentedly High’ Ties with China as Gazprom Seals Power of Siberia-2 Deal
China Unveils New Weapons in Grand Military Parade as Xi Hosts Putin and Kim
Queen Camilla’s Teenage Courage: Fended Off Attempted Assault on London Train, New Biography Reveals
Scottish Brothers Set Record in Historic Pacific Row
Rapper Cardi B Cleared of Liability in Los Angeles Civil Assault Trial
Google Avoids Break-Up in U.S. Antitrust Case as Stocks Rise
Couple celebrates 80th wedding anniversary at assisted living facility in Lancaster
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
The White House on LinkedIn Has Changed Their Profile Picture to Donald Trump
"Insulted the Prophet Muhammad": Woman Burned Alive by Angry Mob in Niger State, Nigeria
Trump Responds to Death Rumors – Announces 'Missile City'
Court of Appeal Allows Asylum Seekers to Remain at Essex Hotel Amid Local Tax Boycott Threats
Germany in Turmoil: Ukrainian Teenage Girl Pushed to Death by Illegal Iraqi Migrant
United Krack down on human rights: Graham Linehan Arrested at Heathrow Over Three X Posts, Hospitalised, Released on Bail with Posting Ban
Asian and Middle Eastern Investors Avoid US Markets
Ray Dalio Warns of US Shift to Autocracy
Eurozone Inflation Rises to 2.1% in August
Russia and China Sign New Gas Pipeline Deal
China's Robotics Industry Fuels Export Surge
Suntory Chairman Resigns After Police Probe
Gold Price Hits New All-Time Record
Von der Leyen's Plane Hit by Suspected Russian GPS Interference in an Incident Believed to Be Caused by Russia or by Pro-Peace or by Anti-Corruption European Activists
UK Fintechs Explore Buying US Banks
Greece Suspends 5% of Schools as Birth Rate Drops
Apollo to Launch $5 Billion Sports Investment Vehicle
Bolsonaro Trial Nears Close Amid US-Brazil Tension
European Banks Push for Lower Cross-Border Barriers
Poland's Offshore Wind Sector Attracts Investors
Nvidia Reveals: Two Mystery Customers Account for About 40% of Revenue
Woody Allen: "I Would Be Happy to Direct Trump Again in a Film"
Pickles are the latest craze among Generation Z in the United States.
Deadline Day Delivers Record £125m Isak Move and Donnarumma to City
Nestlé Removes CEO Laurent Freixe Following Undisclosed Relationship with Subordinate
Giuliani Seriously Injured in Accident – Trump to Award Him the Presidential Medal of Freedom
EU is getting aggressive: Four AfD Candidates Die Unexpectedly Ahead of North Rhine-Westphalia Local Elections
Lula and Putin Hold Strategic BRICS Discussions Ahead of Trump–Putin Summit
WhatsApp is rolling out a feature that looks a lot like Telegram.
Investigations Reveal Rise in ‘Sex-for-Rent’ Listings Across Canada Exploiting Vulnerable Tenants
Chinese and Indian Leaders Pursue Amity Amid Global Shifts
European Union Plans for Ukraine Deployment
ECB Warns Against Inflation Complacency
Concerns Over North Cyprus Casino Development
Shipping Companies Look Beyond Chinese Finance
×