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Economic Sanctions: (EAC Report)

My Lords, I note what is said, but I do not agree. The ability of not just individuals but non-state or even state entities from a target country to operate internationally depends on the capacity to engage in international financial transactions. The case I mentioned—before I turn to my second point—involved sanctions being applied against several of the main banks of Iran worldwide. That is a very potent weapon in its effect on the country in question. The banks in question in the case were the banks acting for the ministry of defence and armed forces of Iran. That is very effective in affecting their capacity to buy and sell abroad, if there are effective sanctions. So my point is not restricted to the fancy car or house in a particular place but the way in which a target country is operating financially in the international arena. It can be done. We have a Proceeds of Crime Act in this country which Parliament has passed, as a result of which there is a system internationally whereby crooks, fraudsters and institutions engaged in such activity can be chased worldwide. In the case in which I was involved, by savage irony, our Serious Fraud Office was dealing with a request from the Government of Iran concerning an alleged fraud to freeze the assets of someone in this country, which then led to the question whether that could be done if they were subject to sanctions. It was an ironic state of affairs, but the main point is that the process for chasing the money is now worldwide. I have concentrated on finance because I am simply not prepared to accept that targeted sanctions can have no effect. They may not have total effect, the effect may be modest, but it is significant. I turn to my conclusion. If we are to approach the preservation of international peace and security on the basis of principle rather than the primitive, then principle requires a system. A system that operates well should include something more than force. If it is to be sanctions, along with the other things that I mentioned, let them be efficient and let us in this country lead. The committee’s report has given us a good basis for reassessing our policy. I hope that the Government will proceed positively in future.