Beautiful Virgin Islands

Saturday, Aug 22, 2026

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

Beautiful Virgin Islands
0:00
0:00
Close
Twenty-Nine US States Take Meta to Trial Over Alleged Child Addiction on Instagram and Facebook
Former Scottish National Party Executive Peter Murrell Jailed for Five Years Over £400,000 Embezzlement
Moderna and Merck's Personalized Cancer Vaccine Succeeds in Historic Late-Stage Melanoma Trial
Prince Harry and Meghan to Move Back to Britain With Their Children
England and Wales Have Fewer Than 1,800 Prison Places Left for Men
Suspected People Smuggler Arrested After Investigation Identified Him
Children's Doctors Warn That Vaping Can Lead Young People to Smoking
Hundreds of Thousands of Students Receive GCSE and Vocational Results Across England, Wales and Northern Ireland
Here Is What Can Never Happen in Your Country: Taiwan Is Giving Money to All Its People Because It Collected Too Much Tax
UK Inflation Rises to 2.9% as Energy Bills Jump
UK Issues New Conduct Guide for Asylum Seekers on Consent and Respect
A Sleepless Night on Wall Street: Nasdaq to Begin Nearly Round-the-Clock Trading
"The First in the World": 69-Year-Old Protested Artificial Intelligence—and Went to Jail
Ukraine's Ousted Defence Minister Calls for Wartime Presidential Election
China’s Lifelike AI Humans Move From Livestreams Into Real-World Service Roles
Sarah Ferguson Reportedly Retreats to Late Ex-Boyfriend's Swiss Chalet
Cristiano Ronaldo and Georgina Rodríguez Sign Prenup Protecting Their Separate Fortunes
Thieves Steal Antonello da Messina Renaissance Masterpieces From Sicilian Museum
Better.com Founder Who Fired 900 Employees on Zoom Is Ousted as CEO
Italian Speed Camera Issues Nearly 32,000 Fines in 10 Weeks, Worth More Than €3 Million
AI Manager at San Francisco Store Recommends Firing Human Employee
Google Launches Pixel 11 With Gemini AI at the Center of Its Hardware Strategy
Reform UK Unveils Plan to Cut Welfare Spending by More Than £50 Billion a Year
Prime Minister Andy Burnham Praised Extinction Rebellion for Doing a 'Great Service'
UK Wildfire Phone Alert Triggers Backlash as Users Switch Off Emergency Warnings
Heathrow Roads Reopen After Burst Water Main Floods Access to Terminals 2 and 3
Former NBA Players Enes Kanter Freedom and Royce White Say They Will Enter 2027 WNBA Draft
Former Cambridge Professor Jason Arday Found Dead Days After Resigning Amid Plagiarism Row
US Appeals Court Rules AI Agent's Website Actions Are Legally Attributed to the User
France's Constitutional Council Blocks Social Media Ban for Children Under 15
Liechtenstein Changes Royal Succession Rules to Allow Women to Inherit the Throne
Women Allege Rape and Sexual Abuse at British Army College for Teenage Recruits
Minnesota: Two independent investigators posed as Muslims (one wearing a burqa) and showed how they could vote in elections without identification.
China’s Kimi Launches AI-Focused Credit Card With Agricultural Bank of China and American Express
Former Labour Adviser Arrested on Suspicion of Spying for China Held Privileged Access as Top Party Donor
Turkish Parliament Passes Landmark Bill Granting Conditional Amnesty to Disarmed PKK Members
Donald Trump Warns FIFA Against Ousting Gianni Infantino Amid Revolt by Global Football Leaders
Jeff Bezos Joins Investor Group Closing In on $6 Billion Liverpool FC Stake
UK Councils to Receive Sweeping Planning Powers to Ban New Vape and Betting Shops
Russia’s A7 Builds a State-Linked Payments Network Beyond Western Sanctions
Hyper-Realistic Reborn Dolls Draw Collectors Seeking Comfort and Craft
Gen Z Cuts Back on Dating as a Night Out Nears $200
Patients Turn to Artificial Intelligence for Therapy as Psychiatrists Warn of Privacy and Clinical Risks
Couples Embrace ‘Sleep Divorce’ to Protect Rest and Reduce Tension
Meta Ordered to Pay $567 Million and Change Facebook and Instagram Safeguards for Children
Up to only 10 Months in Prison for Swedish Officer’s Murderer Sparks Anger
Success: Nvidia Turned Gaming Chips Into the Engine of the AI Boom
Jorge Messi, Lionel Messi’s Father and Longtime Agent, Dies at 68
AI’s Next Bottleneck Is Power, Not Just Nvidia Chips
Advertising trick: Pepsi’s Harrier Jet Commercial Led to a $700,000 Court Fight
×