Eleventh Report - Economic Crime

Select Committee
Treasury Committee HC 145 2 February 2022
Report Status Government responded
Conclusions & Recommendations 56 items (36 recs)
Source View on Parliament website
Government Response (AI assessment · 56 of 56 classified)
Accepted 18
Accepted in Part 1
Acknowledged 31
Not Addressed 4
Rejected 2
Government response
Eighth Special Report - Economic Crime: responses to the Committee’s Eleventh Report · published 28 Apr 2022
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Recommendations & Conclusions

18 results
2 Conclusion Accepted
Para 34
We are as unhappy as the Minister is with progress so far in tackling economic...
Conclusion
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 Summary
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
Para 35
The Government should give this work a far higher priority.
Recommendation
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 Summary
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
Para 48
We welcome the Government’s undertaking to be accountable for spending the money raised by the...
Recommendation
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 Summary
The government commits to publishing an annual report on the Economic Crime Levy and an evaluation of its effectiveness.
HM Treasury
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10 Recommendation Accepted
Para 57
Law enforcement agencies themselves appear to note the mismatch between the scale of the problem...
Recommendation
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 Summary
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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11 Conclusion Accepted
Para 58
There may be many reasons for low prioritisation of economic crime by crime- fighting agencies.
Conclusion
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 Summary
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
We agree with the Joint Committee that the Draft Online Safety Bill should be amended...
Recommendation
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 Summary
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.
HM Treasury
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14 Recommendation Accepted
Para 94
We reiterate our strong belief that the Government should include measures to address fraud via...
Recommendation
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 Summary
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
Para 103
The Joint Committee on the Draft Online Safety Bill concluded that self-regulation of online platforms...
Conclusion
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 Summary
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
Para 104
We welcome the setting up of the Online Fraud Steering Group, and we encourage all...
Conclusion
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 Summary
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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23 Recommendation Accepted
The Government should build on these foundations when it updates the Economic Crime Plan.
Recommendation
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 Summary
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.
HM Treasury
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26 Recommendation Accepted
Para 118
We recommend that the Government urgently legislates to give the Payment Systems Regulator (PSR) powers...
Recommendation
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 Summary
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.
HM Treasury
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27 Conclusion Accepted
Para 123
We welcome the introduction of the Confirmation of Payee service in 2019, as recommended by...
Conclusion
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 Summary
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.
HM Treasury
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50 Conclusion Accepted
Para 230
Reform of Companies House is essential if UK companies are no longer to be used...
Conclusion
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 Summary
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.
HM Treasury
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51 Recommendation Accepted
Para 231
Waiting until the operational transformation of Companies House is complete risks further delay beyond 2025...
Recommendation
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 Summary
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
Para 237
The low costs of company formation, and of other Companies House fees (such as filing...
Conclusion
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 Summary
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.
HM Treasury
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54 Recommendation Accepted
Para 238
The Government should significantly increase the costs of company and Limited Liability Partnership incorporation, including...
Recommendation
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 Summary
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
Para 246
We are disappointed that the Registration of Overseas Entities Bill is still awaiting introduction, more...
Conclusion
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 Summary
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.
HM Treasury
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56 Recommendation Accepted
We urge the Government to include a Registration of Overseas Entities Bill in the Queen’s...
Recommendation
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 Summary
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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