Eleventh Report - Economic Crime

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

The government would welcome the opportunity to provide the Committee with a progress report by the end of 2022.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.