I beg to move,
That the Committee has considered the draft Criminal Finances Act 2017 and Economic Crime and Corporate Transparency Act 2023 (Consequential Amendments) Regulations 2024.
It is a great pleasure to serve under your chairship, Mr Efford, and to welcome the shadow Minister, the hon. Member for Stockton West, to his place. I spent a very long time on the Opposition Benches in various shadow ministerial roles, so I hope the shadow Minister will take it in the right spirit when I say that I wish him much longevity on the Opposition Front Bench. I note that he has been busy and has already done two statutory instrument Committees since his appointment. Opposition is hard work, as I know all too well. As he settles into his important role as a shadow Home Office Minister, I wish him the very best over the coming months—maybe years. Despite our political differences, I know that we both care deeply about the security and safety of our country. In that spirit, I very much hope to work constructively and in the national interest with all of the shadow Home Office team.
Before I address the contents of the statutory instrument, I will briefly provide some background. The Economic Crime and Corporate Transparency Act 2023 contained a wide range of reforms to reduce economic crime and increase transparency over corporate entities conducting business in the UK. This included reforms to enable targeted information sharing to tackle money laundering and remove reporting burdens on businesses. Additionally, the 2023 Act introduced new intelligence-gathering powers for law enforcement and reformed outdated criminal corporate liability laws.
The reforms to the unexplained wealth orders regime, corporate liability laws and targeted information sharing are already in force. More recently, guidance for the new offence of failure to prevent fraud was published last week, on 6 November. The offence itself will come into effect in September next year, allowing organisations to develop their fraud-prevention measures before the offence comes into force.
The 2023 Act also introduced—this is of most relevance to this debate—a new regime to tackle criminal and terrorist cryptoassets. The use of cryptoassets in illegal activity is increasing. When introducing and reviewing legislation, we must consider emerging technologies and how they can be harnessed by criminals to commit crimes or to hide their ill-gotten gains. Under the previous Government, a bespoke regime was included in the Proceeds of Crime Act 2002 to allow the effective seizure of both criminal and terrorist cryptoassets. The regime was included in the 2023 Act to make it easier to confiscate cryptoassets from criminals and to forfeit cryptoassets that are obtained from or intended to be used in either crime or terrorism.
On 26 April, the relevant cryptoassets measures came into force, and the powers are operational in England and Wales. As of the end of October, the new powers have been exercised in more than 80 cases, including cryptoasset seizures or confiscation cases involving cryptoassets. I do not intend to cover the content of the powers themselves, as they were debated extensively by both Houses during the passage of the 2023 Act. I will instead outline briefly the purpose of the statutory instrument and the reason why we are gathered here this morning.
The regulations will make a set of amendments that are consequential on the Criminal Finances Act 2017 and the Economic Crime and Corporate Transparency Act 2023. The regulations address missed consequential amendments to the Proceeds of Crime Act 2002 and ensure that the investigative powers that that Act included —for example, reference to cryptoasset investigations—are included in all necessary sections of the powers in order that they function properly and act in accordance with the policy intention.
The statutory instrument is required to complete the commencement of the Economic Crime and Corporate Transparency Act 2023. It will ensure that all the necessary legislation is in place and that there is legal certainty as to how cases will be dealt with. I commend the statutory instrument to the Committee.