What amendments are needed to the sanctions powers in the Economic Crime (Transparency and Enforcement) Bill being considered by Parliament?

Publications / Briefings

The Economic Crime (Transparency and Enforcement) Bill: four delegated powers that should be amended to improve future accountability to Parliament

3 Mar 2022

The Bill seeks to crack down on ‘dirty money’ and corrupt elites in the UK and is being expedited through Parliament following Russia’s invasion of Ukraine. This briefing identifies four delegated powers in the Bill that should be amended to ensure future accountability to Parliament.

Download the briefing

,
Researcher, Hansard Society

Get our latest research, insights and events delivered to your inbox

Share this and support our work

The scope and design of the delegation of power sought in any Bill raise important questions for MPs that go to the heart of their role as legislators. MPs should be clear about the level of authority they are delegating to government Ministers and be confident that they will not regret forgoing their ability to fully scrutinise future government decisions.

Our analysis of delegated powers in this and other Bills draws heavily on ‘legislative standards’ which we have derived from reports of the House of Lords Delegated Powers and Regulatory Reform Committee (DPRRC). The DPRRC is an influential committee and provides the nearest thing to a form of ‘jurisprudence’ (or ‘legisprudence’) in the area of delegated powers.

The Bill falls into three Parts:

Part 1 of the Bill makes provisions to set up a register of overseas entities and their beneficial owners, and requires overseas entities who own land in the UK to register in certain circumstances. The purpose behind these provisions is to combat economic crime, by requiring anonymous foreign owners of UK property to reveal their real identities to ensure criminals cannot hide behind chains of shell companies. We have identified at least 23 provisions that confer new delegated powers (not including the powers to make commencement, transitional and saving provisions). Of these, seven include powers that can be exercised to amend primary legislation (‘Henry VIII powers’).

Part 2 of the Bill makes provisions to reform Unexplained Wealth Orders by amending the Proceeds of Crime Act 2002.

Part 3 of the Bill makes provisions about breaches of financial sanctions by amending the Policing and Crime Act 2017. These Parts contain no provisions that confer new delegated powers.

There are four clauses of concern

Clause 14: Sections 12 and 13: supplementary
Clause 17: Power to modify application process etc in certain cases
Clause 23: Disclosure of protected information
Clause 38: Financial penalties

The exercise of the powers in the first three clauses is subject to the ‘negative’ parliamentary scrutiny procedure. In all three cases we recommend that parliamentarians should seek to amend the clauses so that the higher ‘affirmative’ scrutiny procedure applies. The briefing provides a suggested amendment to achieve this in each case.

The fourth and final clause of concern relates to the imposition of a financial penalty. Where the penalty for an offence may be set by delegated legislation, the maximum penalty that can be imposed should be set out on the face of the Bill. The Bill does not do this, so the briefing provides a suggested amendment to achieve this objective.

Cite this

Vangimalla, D. (2022) The Economic Crime (Transparency and Enforcement) Bill: Delegated Powers (London: Hansard Society)

Who funds this work?

This work is supported by the Legal Education Foundation as part of the Hansard Society's Delegated Legislation Review.

Latest / Highlights

News / Parliament Matters Bulletin: What’s coming up in Parliament this week? 15-19 September 2025

Peers will vote on the assisted dying bill’s Second Reading, while MPs will question the new Home Secretary Shabana Mahmood MP and Lord Chancellor David Lammy MP. The Commons will debate the Employment Rights, English Devolution and Community Empowerment, and Sentencing Bills, as Peers examine the Planning and Infrastructure and Children’s Wellbeing and Schools Bills. Committees will hear evidence on arms exports to Israel and the Online Safety Act. MPs will also debate an e-petition on SEND support and consider a Ten Minute Rule Bill on child poverty strategy, including removing the two-child limit for Universal Credit. The youngest minister in nearly two centuries will make his first appearance before a Select Committee. ❓ We value your thoughts. Please click here to let us know what you think of the Parliament Matters Bulletin in our reader survey.

News / Assisted dying bill - special series #16: The Bill makes its debut in the House of Lords - Parliament Matters podcast, Episode 106

As Peers embark on a marathon two-day Second Reading debate on the Terminally Ill Adults (End of Life) Bill – the measure that would legalise assisted dying in England and Wales – we are joined by former Clerk of the Parliaments, Sir David Beamish, to decode the drama. With more than two hundred members of the House of Lords lining up to speak, Sir David explains why, despite the intensity of the arguments, no one expects the Bill to be rejected at this stage. Instead, the real fight will come later, after Peers get into the clause-by-clause detail and see what defects can be remedied. Please help us by completing our Listener Survey. It will only take a few minutes.

Briefings / The assisted dying bill: A guide to the legislative process in the House of Lords

Having passed through the House of Commons, the Terminally Ill Adults (End of Life) Bill - the Bill to legalise assisted dying in England and Wales - must now go through its legislative stages in the House of Lords. This guide explains the special procedures for legislation in the House of Lords, and for Private Members’ Bills in particular. It answers some frequently asked questions, including how Peers might block the Bill, and gives an explanation of each stage of the process, from Second to Third Reading.

Briefings / Delegated powers in the assisted dying bill: Issues for the attention of the House of Lords

Like many pieces of primary legislation, the assisted dying bill leaves much of the practical and policy detail to be worked out later by Ministers through regulations. After the Bill’s Second Reading in the House of Commons, we published a briefing which drew attention to two of its delegated powers. But since then the Bill has been heavily amended, prompting new questions: how have its delegated powers evolved, do these changes strengthen or weaken the approach to the delegation of ministerial power, and are further amendments needed and if so, why?

News / Is Parliament at the root of the country's problems? - Parliament Matters podcast, Episode 105

Does Parliament itself lie at the root of some of Britain’s political and economic difficulties? Lord Goodman argues that it does and so makes the case for urgent parliamentary reform. This week we also examine the implications of a Downing Street reshuffle that has created a “Chief Secretary to the Prime Minister,” raising new questions about accountability in the Commons. The discussion ranges from Angela Rayner’s uncertain position, Nigel Farage’s controversial US appearance, and the Greens’ leadership contest, to the growing use of artificial intelligence in parliamentary work. Please help us by completing our Listener Survey. It will only take a few minutes.