Source · Select Committees · Foreign Affairs Committee
Recommendation 6
6
Accepted in Part
Paragraph: 30
Increase resources for law enforcement authorities to combat illicit finance effectively
Recommendation
While there has been progress in developing laws and regulations to curb money laundering in the UK in recent years, enforcement has been inadequate, not least because of a lack of enforcement capacity. State agencies have been under-resourced in comparison with the wealthy individuals they are investigating. We reiterate the recommendation in our 2022 report, ‘The cost of complacency: illicit finance and the war in Ukraine’, that the Government increase resources available to law enforcement authorities, including the National Crime Agency and the Serious Fraud Office, to ensure that they have the capacity to conduct effective actions against those engaged in illicit finance.
Government Response Summary
The government partially agrees, detailing a sustainable funding model including £400 million over three years for economic crime bodies, with £63m for Companies House reform. They are recruiting 475 investigators and establishing/expanding specific cells within the National Crime Agency.
Paragraph Reference:
30
Government Response
Accepted in Part
HM Government
Accepted in Part
Partially Agree 23. The Government has developed a sustainable funding model that demonstrates our commitment to tackling economic crime. We are investing in the National Crime Agency and have increased their budget year on year since 2019. This includes a new unit within the NCA, the Combatting Kleptocracy Cell, which is focused on targeting corrupt elites and their wealth in the UK. 24. The combination of the most recent Spending Review settlement and private sector contributions through the new Economic Crime Levy will provide funding of £400 million to Government bodies over the next three years. This includes £63m for Companies House Reform. HMG’s economic crime related investments will be guided by the Economic Crime Plan 2 (ECP2), published in March 2022. Through 43 actions, ECP2 sets out how activity across the system will help to reduce money laundering and recover more criminal assets; combat kleptocracy and drive down sanctions evasion; and cut fraud. Our ambitious reforms include: i. Recruiting an additional 475 financial crime investigators, ii. Establishing a new Crypto Cell to combat criminal abuse of cryptoassets, and iii. Expanding the Combatting Kleptocracy Cell to target corrupt elites, their money, and their enablers.