Labour is revealing plans to crack down on financial crime and money laundering in the UK, targeting white-collar enablers of corruption and offering rewards for whistleblowers who expose breaches of sanctions.
David Lammy, the shadow foreign secretary, will outline Labour’s strategy, which includes hosting a UK summit to address financial crime globally and advocating for the establishment of an international anti-corruption court.
In his speech at the Institute for Public Policy Research, Lammy will criticize the Conservative government, stating that after nearly 15 years of Conservative rule, Britain has become a “corruption services center,” with London serving as a hub for kleptocracy.
David Lammy to Outline Labour’s Global Financial Crime Strategy
Labour’s proposals involve taking action against professionals such as lawyers, accountants, and estate agents who facilitate illicit financial activities. They aim to widen registration requirements for UK trusts to prevent their misuse for criminal purposes and enhance transparency around trust ownership of UK property.
Additionally, Labour plans to tighten the UK’s sanctions regime to target individuals and entities involved in money laundering. They will incentivize whistleblowers to come forward by offering rewards of up to 25% of any fines imposed by the Office of Financial Sanctions Implementation.
Lammy will highlight concerns raised by allies in the US, Ukraine, Africa, and the Caribbean regarding the UK’s approach to corruption and perceived loopholes in its sanctions regime. He will emphasize the need for the UK to lead efforts to combat money laundering and kleptocracy globally.
Labour’s proposal includes establishing real-time global data exchanges on beneficial ownership of corporate structures to facilitate cross-border investigations. While the party acknowledges the importance of the City of London and professional services, they warn that corruption undermines the UK’s reputation and long-term competitiveness.
Analysts support Labour’s initiative, noting that tougher action is necessary to prevent the flow of dirty money through London. They commend Labour’s approach to treating financial crime as a foreign policy matter and assert that the UK must be more proactive in addressing this issue on the global stage.
