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
31 results
Clear
1 Conclusion Acknowledged
Eleventh Report - Economic Crime
The growth in economic crime and fraud is constantly evolving and poses a challenge to...
The growth in economic crime and fraud is constantly evolving and poses a challenge to Government. There is no “silver bullet” solution. Government must work across departments, regulatory bodies and law enforcement agencies to address all aspects of the problem. … Read more
Government Response
The government acknowledges the need for a comprehensive and coordinated response to economic crime, highlighting the role of the Home Office and HM Treasury in leading the Economic Crime Plan and the importance of the National Economic Crime Centre.
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4 Conclusion Acknowledged
Eleventh Report - Economic Crime
The Economic Crime Plan is for the period 2019 to 2022, and this year there...
The Economic Crime Plan is for the period 2019 to 2022, and this year there is an opportunity for the Government to review how well the Plan has operated, its strengths, and its failings. It should be adapted as necessary … Read more
Government Response
The government acknowledges the opportunity to review the Economic Crime Plan and will evaluate its strengths and weaknesses to inform the development of the second iteration, focusing on measurable outcomes.
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6 Conclusion Acknowledged
Eleventh Report - Economic Crime
Spending on economic crime needs to be sufficient to meet the challenge.
Spending on economic crime needs to be sufficient to meet the challenge. The Economic Crime Levy is intended to bring in a useful amount of additional funding to support the fight against economic crime. We welcome the design of the … Read more
Government Response
The government recognizes the need for increased spending to tackle economic crime, highlighting the Economic Crime Levy, funding announced at last year's Spending Review, reforms set out in the Economic Crime Plan, Companies House reform, and support for the FATF.
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8 Recommendation Acknowledged
Eleventh Report - Economic Crime
We recommend that the Government provides a breakdown of how the additional funding allocated to...
We recommend that the Government provides a breakdown of how the additional funding allocated to the Home Office in the Spending Review for fighting economic crime will be spent, and how much of that funding will reach crime-fighting agencies. The … Read more
Government Response
The government acknowledges the recommendation, outlining a sustainable funding model including the Spending Review settlement and Economic Crime Levy, and providing general allocations of around £100 million to tackling fraud by the Home Office up until 2025.
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15 Recommendation Acknowledged
Eleventh Report - Economic Crime
The Government should consider whether online platforms and social media companies should be required to...
The Government should consider whether online platforms and social media companies should be required to do Know Your Customer checks on their advertisers, to make it more difficult for fraudsters to promote themselves.
Government Response
The government agrees that understanding who is publishing material is important and will continue to engage with the FCA on this issue and consider the evidence for requiring platforms to conduct KYC checks on their advertisers.
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16 Recommendation Acknowledged
Eleventh Report - Economic Crime
We welcome the steps taken by certain online firms to take a clearer line in...
We welcome the steps taken by certain online firms to take a clearer line in facilitating access to their platforms only for financial promotions placed by entities which are authorised by the FCA. We urge other online companies which have … Read more
Government Response
The government welcomes the steps taken by firms and the suggestion that OFCOM might include recommendations that platforms check the identities of those wishing to publish adverts on their platforms, and look forward to working closely with OFCOM as it develops the Codes.
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17 Recommendation Acknowledged
Eleventh Report - Economic Crime
The Government should not allow online companies to ignore legislation designed to protect consumers from...
The Government should not allow online companies to ignore legislation designed to protect consumers from harm. The Government should ensure that financial services advertising regulations apply also to online companies, and that the FCA has the necessary powers to effectively … Read more
Government Response
The government has clarified its view on existing regulation and notes that Google has put in place a new financial services verification policy. It welcomes the amendments to the Online Safety Bill, which will mean that platforms and social media companies are subject to clear legal obligations to prevent/minimise consumers’ exposure to fraud related content on their sites in the first place.
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19 Conclusion Acknowledged
Eleventh Report - Economic Crime
We recognise that placing a responsibility on online companies to reimburse consumers who are victims...
We recognise that placing a responsibility on online companies to reimburse consumers who are victims of online fraud could rapidly transform their approach to fraud. Any move to force online firms to compensate victims of fraud should not be to … Read more
Government Response
The Government notes the recommendation and understands that the Joint Committee on the Online Safety Bill has recommended both the creation of an Online Safety Ombudsman to provide recourse to redress where failure to comply with the provisions of the Bill lead to significant, demonstrable harm, and creating a private right of action for redress for individuals.
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20 Recommendation Acknowledged
Eleventh Report - Economic Crime
We recommend that the Government seriously consider whether online companies should be required to contribute...
We recommend that the Government seriously consider whether online companies should be required to contribute compensation when fraud is conducted using their platforms.
Government Response
The government notes the recommendation and is happy to discuss any ideas for redress models which the Government or other regulators would like to develop.
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24 Conclusion Acknowledged
Eleventh Report - Economic Crime
The work of the Payment Systems Regulator to improve the Contingent Reimbursement Model Code is...
The work of the Payment Systems Regulator to improve the Contingent Reimbursement Model Code is welcome, as is the Government’s confirmation that it will introduce any necessary legislation to that end. Together, these steps will help improve consumer outcomes and … Read more
Government Response
The government welcomes the Committee's recognition of their work on the Contingent Reimbursement Model (CRM) Code and expresses support for making the code mandatory.
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25 Conclusion Acknowledged
Eleventh Report - Economic Crime
However, the pace of change has been very slow against a background of growing fraud,...
However, the pace of change has been very slow against a background of growing fraud, which should have prompted greater urgency. The super-complaint was made in 2016, and the previous Treasury Committee called for the Contingent Reimbursement Model Code to … Read more
Government Response
The government recognizes the need to stop fraud and reduce APP scams, stating they published a call for views and are considering measures like requiring PSPs to publish comparative data, improving intelligence sharing, and making reimbursement mandatory.
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28 Recommendation Acknowledged
Eleventh Report - Economic Crime
We recommend that the PSR supplies a report to our Committee on progress in the...
We recommend that the PSR supplies a report to our Committee on progress in the implementation of Phase 2 by the end of 2022.
Government Response
The government would welcome the opportunity to provide the Committee with a progress report by the end of 2022.
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29 Recommendation Acknowledged
Eleventh Report - Economic Crime
Improving data-sharing between banks is one of the measures which the PSR is implementing as...
Improving data-sharing between banks is one of the measures which the PSR is implementing as part of its reform of the CRM Code. The Treasury should be ready to bring forward any legislation which is needed to enable this, and … Read more
Government Response
A joint industry working group is assessing the specific information that could be shared to improve intelligence sharing between PSPs about the risks of payments, with high level proposals by the end of May 2022.
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30 Conclusion Acknowledged
Eleventh Report - Economic Crime
The National Crime Agency is right to focus on Suspicious Activity Reports as a priority,...
The National Crime Agency is right to focus on Suspicious Activity Reports as a priority, and we welcome the much-needed investment in new IT systems and the plans for increasing staff and analytical capacity. The SARs reform programme is likely … Read more
Government Response
The government highlights the Economic Crime (Anti-Money Laundering) Levy and funding for SARs reform, increasing intelligence capabilities, and law enforcement investigative capacity, but does not directly address the Committee's conclusion.
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31 Conclusion Acknowledged
Eleventh Report - Economic Crime
It is, however, disappointing that the SARs reform programme is not yet complete and that...
It is, however, disappointing that the SARs reform programme is not yet complete and that no timetable or target date for its completion has been published.
Government Response
The government acknowledges the need for increased spending to tackle economic crime, pointing to the Economic Crime Levy, funding announced at last year's Spending Review, reforms set out in the Economic Crime Plan, Companies House reform, and support for the FATF as examples of efforts to reform SARs.
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33 Conclusion Acknowledged
Eleventh Report - Economic Crime
But the SARs reform programme is not an end in itself—it can only deliver change...
But the SARs reform programme is not an end in itself—it can only deliver change if the law enforcement agencies have the ongoing capacity and funding to tackle the criminal activity indicated by SARs. Responsibility lies with the Government to … Read more
Government Response
The government says it has a sustainable funding model to tackle economic crime but the structure means it is challenging to track the exact total of how much is being spent by the public sector to tackle economic crime specifically; around £100 million has been allocated to tackling fraud by the Home Office up until 2025.
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34 Recommendation Acknowledged
Eleventh Report - Economic Crime
The effectiveness of SARs might be increased if banks are permitted to share information with...
The effectiveness of SARs might be increased if banks are permitted to share information with the National Crime Agency and other law enforcement agencies, before the suspicion threshold required under existing anti-money laundering legislation is reached. Read more
Government Response
The government acknowledges the potential for greater data sharing to disrupt serious and organised crime and welcomes initiatives to build a system for more dynamic/real-time links, but doesn't commit to any specific action.
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35 Conclusion Acknowledged
Eleventh Report - Economic Crime
Whilst the Office for Professional Body Anti-Money Laundering Supervision (OPBAS) has made good progress, it...
Whilst the Office for Professional Body Anti-Money Laundering Supervision (OPBAS) has made good progress, it is disappointing that nearly four years after it was set up, it is still encountering poor performance from a large proportion of the professional bodies … Read more
Government Response
The government welcomes the report's recognition of progress and states that OPBAS expects PBSs to continue investing in their AML supervision, and will continue to evolve its approach to supervision.
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36 Recommendation Acknowledged
Eleventh Report - Economic Crime
The forthcoming Government review of the regulatory and supervisory regime for anti-money laundering and counter-terrorist...
The forthcoming Government review of the regulatory and supervisory regime for anti-money laundering and counter-terrorist financing, expected to conclude by June 2022, needs to address the concerns we have heard in this inquiry about the limited forward steps in compliance … Read more
Government Response
The government welcomes the report’s recognition of the progress OPBAS has achieved; states that OPBAS expects PBSs to continue investing in, and strengthening their AML supervision; and states that OPBAS will continue to evolve its approach to supervision.
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37 Recommendation Acknowledged
Eleventh Report - Economic Crime
The case for a supervisor of supervisors—including statutory supervisors—is still as it was at the...
The case for a supervisor of supervisors—including statutory supervisors—is still as it was at the time of our report in in 2019. We recommend that this idea should also be considered by the review.
Government Response
The government acknowledges OPBAS' progress and its focus on the effectiveness of PBS AML supervision, but does not commit to considering the creation of a supervisor of supervisors as recommended.
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38 Recommendation Acknowledged
Eleventh Report - Economic Crime
We note the actions taken by HMRC since its previous inquiry to improve its performance...
We note the actions taken by HMRC since its previous inquiry to improve its performance in supervising anti-money laundering (AML). However HMRC’s self assessment of its performance is not truly independent, and we recommend that HMRC finds a way to … Read more
Government Response
The government welcomes the report’s recognition of OPBAS' progress and states that OPBAS is now focusing on the effectiveness of the PBS AML supervision and will continue to evolve its approach to supervision.
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39 Recommendation Acknowledged
Eleventh Report - Economic Crime
HMRC is responsible for anti-money laundering supervision in a number of risky sectors, such as...
HMRC is responsible for anti-money laundering supervision in a number of risky sectors, such as Trust or Company Service Providers (TCSPs). There are signs that HMRC could improve its supervisory performance in that sector and other risky sectors. HMRC should … Read more
Government Response
The government acknowledges the importance of tackling economic crime and highlights increased investment of £400m, legislative changes, and enhanced powers to seize proceeds of crime and sanction individuals but doesn't specifically address HMRC's supervisory performance in risky sectors.
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40 Recommendation Acknowledged
Eleventh Report - Economic Crime
We recommend that HMRC’s role as a supervisor is reviewed as part of the HM...
We recommend that HMRC’s role as a supervisor is reviewed as part of the HM Treasury review of the Oversight of Professional Body Anti-Money Laundering and Counter Terrorist Financing Supervision Regulations 2017, due by June 2022. That review should also … Read more
Government Response
The government welcomes the recognition of OPBAS's progress and states that OPBAS is focusing on the effectiveness of PBS AML supervision, with the FCA engaging with HM Treasury as part of its review of the AML/CTF supervisory regime.
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41 Recommendation Acknowledged
Eleventh Report - Economic Crime
The UK is a world-leading financial centre and needs an extensive legislative and regulatory regime...
The UK is a world-leading financial centre and needs an extensive legislative and regulatory regime to protect its financial system from money laundering. But it also needs enforcement and to ensure compliance with legislation. It is not obvious that either … Read more
Government Response
The government acknowledges the report's recognition of OPBAS' progress and focus on the effectiveness of PBS AML supervision, but does not address the need for more robust enforcement and compliance systems.
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42 Conclusion Acknowledged
Eleventh Report - Economic Crime
The new assertive approach by the FCA is welcome.
The new assertive approach by the FCA is welcome. The prosecution of NatWest is a major success, and the Committee congratulates the FCA and everyone in the team working on it. The level of the fine should be a deterrent … Read more
Government Response
The government welcomes recognition of OPBAS's progress and states that OPBAS is focusing on the effectiveness of PBS AML supervision, with plans to improve supervision and work closely with other authorities to make the UK inhospitable for criminals. The FCA is engaging with HM Treasury as part of its review of the AML/CTF supervisory regime.
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43 Recommendation Acknowledged
Eleventh Report - Economic Crime
We will continue to monitor the de-risking of customers by banks.
We will continue to monitor the de-risking of customers by banks. We recommend that the FCA report annually on numbers of de-risking decisions and on progress to ensure that banks are not unfairly freezing bank accounts and de-risking customers. (Paragraph … Read more
Government Response
The government states that firms have commercial freedom to choose who they do business with, but are expected to observe their obligation to pay due regard to the interests of customers, and that they regularly review the trend in the number of consumers getting in touch with concerns about their accounts being frozen or closed.
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44 Conclusion Acknowledged
Eleventh Report - Economic Crime
We note the increasing risks around cryptoassets and economic crime.
We note the increasing risks around cryptoassets and economic crime. We share the Government’s concern about the risk to consumers from the growth in the market for cryptoassets. We welcome the announcement by the Treasury that the Government will legislate … Read more
Government Response
The government recognises the benefits that cryptoassets and their underlying technology may offer to financial services and will continue to encourage innovation and support competition in consumers interests.
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45 Recommendation Acknowledged
Eleventh Report - Economic Crime
The work being done by the Advertising Standards Authority to protect consumers from misleading advertisements...
The work being done by the Advertising Standards Authority to protect consumers from misleading advertisements for cryptoassets is also welcome. The Government should ensure that there is proper consumer protection regulation across the whole cryptoasset industry. Read more
Government Response
The government recognises the benefits that cryptoassets and their underlying technology may offer to financial services and will continue to encourage innovation and support competition in consumers interests and is working with them to inform thinking on any further regulatory or legislative actions that may be required.
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46 Recommendation Acknowledged
Eleventh Report - Economic Crime
The Government should set out in the Economic Crime Plan its intention that all cryptoasset...
The Government should set out in the Economic Crime Plan its intention that all cryptoasset firms should be registered for anti-money laundering (AML) purposes. This has not yet been achieved. It is unacceptable that, having introduced AML regulations for cryptoasset … Read more
Government Response
The government recognizes the benefits that cryptoassets and their underlying technology may offer to financial services but doesn't say whether registration is being targeted or enforced.
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48 Recommendation Acknowledged
Eleventh Report - Economic Crime
If, as we recommend, the Government renews the Economic Crime Plan in 2022, it should...
If, as we recommend, the Government renews the Economic Crime Plan in 2022, it should consider instituting measures specifically to protect consumers from fraud and scams relating to cryptoassets. (Paragraph 205) Companies and economic crime
Government Response
The government recognizes the need for increased spending and highlights the Economic Crime (Anti-Money Laundering) Levy, but does not specifically address measures to protect consumers from cryptoasset fraud.
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49 Recommendation Acknowledged
Eleventh Report - Economic Crime
We are disappointed that the Government has not yet implemented reform of corporate criminal liability.
We are disappointed that the Government has not yet implemented reform of corporate criminal liability. The previous Committee presented convincing evidence of the need for this in 2019, already two years after the Ministry of Justice had run its consultation … Read more
Government Response
The government mentions a sustainable funding model, around £400 million over the Spending Review period, and refers to the Asset Recovery Incentivisation Scheme but does not specifically address corporate criminal liability reform.
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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