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20 July 2020
Issue: 7896 / Categories: Legal News , Constitutional law
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Spies, lies & dirty money

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The Official Secrets Act regime is out of date and ‘not fit for purpose’, according to the 55-page report by the Intelligence and Security Committee (ISC) into Kremlin influence, simply titled ‘Russia’.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

Jurit LLP—Caroline Williams

Jurit LLP—Caroline Williams

Private wealth and tax team welcomes cross-border specialist as consultant

Freeths—Michelle Kirkland Elias

Freeths—Michelle Kirkland Elias

International hospitality and leisure specialist joins corporate team as partner

Flint Bishop—Deborah Niven

Flint Bishop—Deborah Niven

Firm appoints head of intellectual property to drive northern growth

NEWS
Talk of a reserved ‘Welsh seat’ on the Supreme Court is misplaced. In NLJ this week, Professor Graham Zellick KC explains that the Constitutional Reform Act treats ‘England and Wales’ as one jurisdiction, with no statutory Welsh slot
The government’s plan to curb jury trials has sparked ‘jury furore’. Writing in NLJ this week, David Locke, partner at Hill Dickinson, says the rationale is ‘grossly inadequate’
A year after the $1.5bn Bybit heist, crypto fraud is booming—but so is recovery. Writing in NLJ this week, Neil Holloway, founder and CEO of M2 Recovery, warns that scams hit at least $14bn in 2025, fuelled by ‘pig butchering’ cons and AI deepfakes
After Woodcock confirmed no general duty to warn, debate turns to the criminal law. Writing in NLJ this week, Charles Davey of The Barrister Group urges revival of misprision or a modern equivalent
Family courts are tightening control of expert evidence. Writing in NLJ this week, Dr Chris Pamplin says there is ‘no automatic right’ to call experts; attendance must be ‘necessary in the interests of justice’ under FPR Pt 25
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