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Spies, lies & dirty money

20 July 2020
Issue: 7896 / Categories: Legal News , Constitutional law
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The long-awaited ‘Russia report’ has called for new legislation to ‘tackle espionage, the illicit financial dealings of the Russian elite and the “enablers” who support this activity’

The Official Secrets Act regime is out of date and ‘not fit for purpose’, according to the 55-page report by the Intelligence and Security Committee (ISC) into Kremlin influence, simply titled ‘Russia’.

‘Crucially, it is not illegal to be a foreign agent in this country,’ the report states. The outcome of a 2017 Law Commission consultation on a new Espionage Act is ‘still awaited’.

One specific issue an Espionage Act could address is ‘individuals acting on behalf of a foreign power and seeking to obfuscate this link’. The report refers to the US Foreign Agents Registration Act (FARA), which dates back to the 1930s and requires everyone who represents the interests of a foreign power apart from accredited diplomats to register with the authorities and provide information about activities and finances. There is no UK equivalent.

In evidence to the ISC, the director-general of MI5 said FARA-type legislation would create ‘the basis therefore of being able to pursue under criminal means somebody not declaring, thereby being undercover… today, it is not an offence in any sense to be a covert agent … unless you acquire damaging secrets and give them to your masters’.

While unexplained wealth orders were introduced in January 2018 and can be applied to assets valued at more than £50,000, they ‘may not be that useful in relation to the Russian elite’… moreover, ‘there are practical issues around their use’. The report quotes the director general of the National Crime Agency, ‘Russians have been investing for a long period of time… you can track back and you can see how they will make a case in court that their wealth is not unexplained, it is very clearly explained’.

The report states there are ‘similar concerns in relation to sanctions’.

Issue: 7896 / Categories: Legal News , Constitutional law
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MOVERS & SHAKERS

Gilson Gray—Linda Pope

Gilson Gray—Linda Pope

Partner joins family law team inLondon

Jackson Lees Group—five promotions

Jackson Lees Group—five promotions

Private client division announces five new partners

Taylor Wessing—Max Millington

Taylor Wessing—Max Millington

Banking and finance team welcomes partner in London

NEWS
The landmark Supreme Court’s decision in Johnson v FirstRand Bank Ltd—along with Rukhadze v Recovery Partners—redefine fiduciary duties in commercial fraud. Writing in NLJ this week, Mary Young of Kingsley Napley analyses the implications of the rulings
Barristers Ben Keith of 5 St Andrew’s Hill and Rhys Davies of Temple Garden Chambers use the arrest of Simon Leviev—the so-called Tinder Swindler—to explore the realities of Interpol red notices, in this week's NLJ
Mazur v Charles Russell Speechlys [2025] has upended assumptions about who may conduct litigation, warn Kevin Latham and Fraser Barnstaple of Kings Chambers in this week's NLJ. But is it as catastrophic as first feared?
Lord Sales has been appointed to become the Deputy President of the Supreme Court after Lord Hodge retires at the end of the year
Limited liability partnerships (LLPs) are reportedly in the firing line in Chancellor Rachel Reeves upcoming Autumn budget
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