Economic crime

Treasury Committee Closed Inquiry
Opened: 23 Oct 2020 Closed: 28 Jun 2022 Parliament page
This inquiry will review what progress has been made in combatting economic crime since the Committee’s inquiry on the subject in the previous Parliament. This inquiry will have two strands: • Anti-money laundering systems and the sanctions regime • How consumers are affected by economic crime It should be noted … Read more
36 Recommendations
20 Conclusions
1 Report
8 Letters
5 Events
Activity timeline 11 events
28 Apr
2022
Report published
2 Feb
2022
Report published
1 Oct
2021
Correspondence
1 Oct
2021
Correspondence
1 Oct
2021
Correspondence
1 Oct
2021
Correspondence
14 Jun
2021
Formal meeting · Virtual meeting
23 Oct
2020
Correspondence
23 Oct
2020
Correspondence
23 Oct
2020
Correspondence
23 Oct
2020
Correspondence
Title HC No. Published Items Response
Eleventh Report - Economic Crime HC 145 2 Feb 2022 56 Responded
Recommendations & Conclusions
18 results
Clear
2 Conclusion Accepted
Eleventh Report - Economic Crime
We are as unhappy as the Minister is with progress so far in tackling economic...
We are as unhappy as the Minister is with progress so far in tackling economic crime, and we welcome his frankness about the progress made. We acknowledge that there is a lot of activity going on across Government, by regulators … Read more
Government Response
The government says it takes the threat of economic crime extremely seriously and has developed robust processes to ensure an effective and coordinated response, including passing the Economic Crime (Transparency and Enforcement) Act.
HM Treasury
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3 Recommendation Accepted
Eleventh Report - Economic Crime
The Government should give this work a far higher priority.
The Government should give this work a far higher priority. Economic crime harms consumers and businesses, damages the reputation of the UK as a pre-eminent financial centre and, as the NCA says, threatens national security.
Government Response
The government states it takes economic crime seriously and has robust processes in place, including the Economic Crime Plan, and has passed the Economic Crime (Transparency and Enforcement) Act, but does not commit to any new specific actions.
HM Treasury
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7 Recommendation Accepted
Eleventh Report - Economic Crime
We welcome the Government’s undertaking to be accountable for spending the money raised by the...
We welcome the Government’s undertaking to be accountable for spending the money raised by the Economic Crime Levy in the way in which it is intended. We recommend 72 Economic Crime that the Government publishes an annual account of its … Read more
Government Response
The government commits to publishing an annual report on the Economic Crime Levy and an evaluation of its effectiveness.
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10 Recommendation Accepted
Eleventh Report - Economic Crime
Law enforcement agencies themselves appear to note the mismatch between the scale of the problem...
Law enforcement agencies themselves appear to note the mismatch between the scale of the problem and the response. Given the harm involved in economic crime, whether directly affecting consumers or not, the Government must consider why it seems not to … Read more
Government Response
The government believes economic crime is a priority for law enforcement, highlighting increased investment of £400m, powers for law enforcement agencies to seize the proceeds of crime, enhanced ability to sanction individuals, and increased law enforcement investigative capacity.
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11 Conclusion Accepted
Eleventh Report - Economic Crime
There may be many reasons for low prioritisation of economic crime by crime- fighting agencies.
There may be many reasons for low prioritisation of economic crime by crime- fighting agencies. It does not happen in the street, but often in people’s homes. Consumers often, apart from inconvenience, do not suffer directly, since they may be … Read more
Government Response
The government believes economic crime is a priority for law enforcement, highlighting increased investment of £400m, powers for law enforcement agencies to seize the proceeds of crime, enhanced ability to sanction individuals, and increased law enforcement investigative capacity.
HM Treasury
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13 Recommendation Accepted
Eleventh Report - Economic Crime
We agree with the Joint Committee that the Draft Online Safety Bill should be amended...
We agree with the Joint Committee that the Draft Online Safety Bill should be amended so as to include fraud offences in the list of “relevant offences” in Clause 41(4) of the Bill. Fraudulent content should be designated as “priority … Read more
Government Response
The Government announced that it would be strengthening the Online Safety Bill to include user-generated fraud offences, legally requiring social media platforms and search engines to take steps to protect their users from fraudulent content.
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14 Recommendation Accepted
Eleventh Report - Economic Crime
We reiterate our strong belief that the Government should include measures to address fraud via...
We reiterate our strong belief that the Government should include measures to address fraud via online advertising in the Online Safety Bill, in the interests of preventing further harm to customers being offered fraudulent financial products.
Government Response
The Government announced that it would be strengthening the Online Safety Bill to include user-generated fraud offences, meaning that social media platforms and search engines will be legally required to take steps to protect their users from fraudulent content.
HM Treasury
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21 Conclusion Accepted
Eleventh Report - Economic Crime
The Joint Committee on the Draft Online Safety Bill concluded that self-regulation of online platforms...
The Joint Committee on the Draft Online Safety Bill concluded that self-regulation of online platforms had failed. It is true that there have been many failings, and it is right that action should now be taken to place more responsibility … Read more
Government Response
The government states that it takes the threat of economic crime extremely seriously and has developed robust processes, including the Online Fraud Steering Group and the Economic Crime Plan, to ensure an effective and coordinated response.
HM Treasury
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22 Conclusion Accepted
Eleventh Report - Economic Crime
We welcome the setting up of the Online Fraud Steering Group, and we encourage all...
We welcome the setting up of the Online Fraud Steering Group, and we encourage all online companies to work constructively with Government agencies and the 74 Economic Crime wider public sector to fight online scams and fraud. The Government is … Read more
Government Response
The government states that it takes the threat of economic crime extremely seriously and has developed robust processes, including the Online Fraud Steering Group and the Economic Crime Plan, to ensure an effective and coordinated response.
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23 Recommendation Accepted
Eleventh Report - Economic Crime
The Government should build on these foundations when it updates the Economic Crime Plan.
The Government should build on these foundations when it updates the Economic Crime Plan. But it should also ensure that regulators and law enforcement agencies have the powers they need to ensure that online companies provide them with information and … Read more
Government Response
The government states it already takes the threat of economic crime extremely seriously and has developed robust processes and passed the Economic Crime (Transparency and Enforcement) Act on 15 March.
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26 Recommendation Accepted
Eleventh Report - Economic Crime
We recommend that the Government urgently legislates to give the Payment Systems Regulator (PSR) powers...
We recommend that the Government urgently legislates to give the Payment Systems Regulator (PSR) powers to make reimbursement mandatory, and that the PSR then take rapid action to protect consumers. We recommend that the PSR and Treasury accelerate their consultation … Read more
Government Response
The government continues to work with the PSR to address the barriers to regulatory action and is ready to impose measures that require PSPs to reimburse APP scam victims, following legislative change, and will publicly announce their approach in autumn 2022.
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27 Conclusion Accepted
Eleventh Report - Economic Crime
We welcome the introduction of the Confirmation of Payee service in 2019, as recommended by...
We welcome the introduction of the Confirmation of Payee service in 2019, as recommended by our predecessor Committee. We also welcome the work the Payment Systems Regulator is doing to broaden its scope through the introduction of Phase 2, extending … Read more
Government Response
The PSR issued Specific Direction 11 (SD11), requiring Pay.UK to close phase 1 CoP by the end of May so that all PSPs are using the Phase 2 technical environment.
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50 Conclusion Accepted
Eleventh Report - Economic Crime
Reform of Companies House is essential if UK companies are no longer to be used...
Reform of Companies House is essential if UK companies are no longer to be used to launder money and conduct economic crime. We welcome the work being done by the Department for Business, Energy and Industrial Strategy and by Companies … Read more
Government Response
The government recognises the importance of delivering Companies House reform, and says HM Treasury has provided BEIS with £63 million over the Spending Review period to facilitate reforms.
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51 Recommendation Accepted
Eleventh Report - Economic Crime
Waiting until the operational transformation of Companies House is complete risks further delay beyond 2025...
Waiting until the operational transformation of Companies House is complete risks further delay beyond 2025 if, as with many public sector change and IT projects, 78 Economic Crime unexpected difficulties slow project delivery. Given the urgency of the problem, the … Read more
Government Response
The government has allocated £63 million over the Spending Review period to BEIS to facilitate Companies House reforms and ensure that the Economic Crime (Transparency and Enforcement) Act can be operationalised quickly.
HM Treasury
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53 Conclusion Accepted
Eleventh Report - Economic Crime
The low costs of company formation, and of other Companies House fees (such as filing...
The low costs of company formation, and of other Companies House fees (such as filing fees), present little barrier to those who wish to set up large numbers of companies for dubious purposes. The UK should be charging fees similar … Read more
Government Response
The government believes the current fees for company formation are too low, and has committed to increasing fees for company registration and other services, as set out in the White Paper on Corporate Transparency and Register Reform.
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54 Recommendation Accepted
Eleventh Report - Economic Crime
The Government should significantly increase the costs of company and Limited Liability Partnership incorporation, including...
The Government should significantly increase the costs of company and Limited Liability Partnership incorporation, including Scottish Limited Partnerships, and should review other Companies House fees to bring them closer to international standards. A fee of £100 for company formation would … Read more
Government Response
The government has committed to increasing fees for company registration and other services, as set out in the White Paper on Corporate Transparency and Register Reform, and will bring forward legislation in the Third Session to deliver these changes.
HM Treasury
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55 Conclusion Accepted
Eleventh Report - Economic Crime
We are disappointed that the Registration of Overseas Entities Bill is still awaiting introduction, more...
We are disappointed that the Registration of Overseas Entities Bill is still awaiting introduction, more than five years after it was promised, and after scrutiny by a Joint Committee. Improving transparency of ownership of UK property is an important step … Read more
Government Response
The government agrees with the importance of transparency and highlights that the Economic Crime (Transparency and Enforcement) Act, which introduces the Register of Overseas Entities, received Royal Assent on 15 March.
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56 Recommendation Accepted
Eleventh Report - Economic Crime
We urge the Government to include a Registration of Overseas Entities Bill in the Queen’s...
We urge the Government to include a Registration of Overseas Entities Bill in the Queen’s Speech for the next Parliamentary session. (Paragraph 247) Economic Crime 79
Government Response
The government states that improving transparency of ownership of UK property is an important step and that they prioritised the Economic Crime (Transparency and Enforcement) Act, which received Royal Assent on 15 March and introduces the Register of Overseas Entities.
HM Treasury
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Government Response AI assessment · 56 of 36 classified
Accepted 18
Accepted in Part 1
Acknowledged 31
Not Addressed 4
Rejected 2
Total 36 recs + 20 conclusions
Correspondence 8 letters
1 Oct 2021 To committee Letter from the Chair to Facebook regarding the Economic Crime evidence session, dated 1 October 2021
Parliament page
1 Oct 2021 To committee Letter from the Chair to Amazon regarding the Economic Crime evidence session, dated 1 October 2021
Parliament page
1 Oct 2021 To committee Letter from the Chair to Google, regarding the Economic Crime evidence session, dated 1 October 2021
Parliament page
1 Oct 2021 To committee Letter from the Chair to eBay regarding the Economic Crime evidence session, dated 1 October 2021
Parliament page
23 Oct 2020 To committee Letter from Chief Executive and First Permanent Secretary, HMRC, relating to FinCen Papers, dated 2 October 2020
Parliament page
23 Oct 2020 To committee Letter from FCA Chief Executive relating to FinCen Papers, dated 9 October 2020
Parliament page
23 Oct 2020 To committee Letter from Lord Callanan, Minister for Climate Change and Corporate Responsibility, BEIS, relating to FinCen Papers, dated 13 October 2020
Parliament page
23 Oct 2020 To committee Letter from Rt Hon James Brokenshire MP, Minister of State for Security, relating to FinCen Papers, dated 19 October 2020
Parliament page