Recommendations & Conclusions
56 items
1
Conclusion
Eleventh Report - Economic Crime
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. A plan to co-ordinate this work, such as the existing …
Government response. The government takes the threat of economic crime extremely seriously and has developed robust processes to ensure an effective and coordinated response. This involves departments across government, regulatory and enforcement agencies, and the private sector, reflecting the wide-ranging impacts of …
HM Treasury
2
Conclusion
Eleventh Report - Economic Crime
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 and crime- fighting agencies, to tackle economic crime; but fraud …
Government response. The government takes the threat of economic crime extremely seriously and has developed robust processes to ensure an effective and coordinated response. This involves departments across government, regulatory and enforcement agencies, and the private sector, reflecting the wide-ranging impacts of …
HM Treasury
3
Recommendation
Eleventh Report - Economic Crime
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 takes the threat of economic crime extremely seriously and has developed robust processes to ensure an effective and coordinated response. This involves departments across government, regulatory and enforcement agencies, and the private sector, reflecting the wide-ranging impacts of …
HM Treasury
4
Conclusion
Eleventh Report - Economic Crime
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 and renewed for a further three years. We expect that …
Government response. Fraud and economic crime are complex and multifaceted issues that touch upon much of the economy and manifest in many different ways. A single departmental approach would, in the government’s view, undermine our efforts to tackle holistically the challenge that …
HM Treasury
5
Recommendation
Eleventh Report - Economic Crime
We recommend that the Government considers whether the governance of the Economic Crime Plan has been effective and also whether having such a wide range of departments with responsibilities in this field is the best way to tackle a problem like economic crime. The Government should consider whether policy responsibility …
Government response. Fraud and economic crime are complex and multifaceted issues that touch upon much of the economy and manifest in many different ways. A single departmental approach would, in the government’s view, undermine our efforts to tackle holistically the challenge that …
HM Treasury
6
Conclusion
Eleventh Report - Economic Crime
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 Levy, as it is simple and excludes the vast majority …
Government response. The government recognises the need for increased spending to tackle economic crime. That is why we have legislated for a new Economic Crime (Anti-Money Laundering) Levy which will raise around £100 million per year to help fund anti-money laundering measures.7 …
HM Treasury
7
Recommendation
Eleventh Report - Economic Crime
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 spending on economic crime, including an account of how the …
Government response. The government recognises the need for increased spending to tackle economic crime. That is why we have legislated for a new Economic Crime (Anti-Money Laundering) Levy which will raise around £100 million per year to help fund anti-money laundering measures.7 …
HM Treasury
8
Recommendation
Eleventh Report - Economic Crime
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 financial resources being brought to bear on the problem are …
Government response. The government has developed a sustainable funding model that demonstrates its commitment to tackling economic crime. As aforementioned, the combination of last year’s Spending Review settlement and private sector contributions through the Economic Crime (Anti Money Laundering) levy will provide …
HM Treasury
9
Recommendation
Eleventh Report - Economic Crime
The number of agencies responsible for fighting economic crime and fraud is bewildering. Each of the enforcement agencies has other crime-fighting or regulatory objectives, and although the joint working co-ordinated by for example the National Economic Crime Centre is welcome, there is a bigger question about whether there should be …
Government response. The government believes that a multi-agency approach is the right way to fight economic crime and fraud. It enables us to differentiate between different crime types. For instance, fraud within the public sector requires a different response to fraud committed …
HM Treasury
10
Recommendation
Eleventh Report - Economic Crime
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 be a priority for law enforcement, and how it can …
Government response. Economic crime is a priority for law enforcement agencies, and the government is committed to ensuring enforcement can continue to make the UK an even more hostile place for illicit finance and economic crime. The sustainable funding model the government …
HM Treasury
11
Conclusion
Eleventh Report - Economic Crime
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 repaid by banks. But these are not reasons to not …
Government response. Economic crime is a priority for law enforcement agencies, and the government is committed to ensuring enforcement can continue to make the UK an even more hostile place for illicit finance and economic crime. The sustainable funding model the government …
HM Treasury
12
Recommendation
Eleventh Report - Economic Crime
We recommend that, in its response to this Report, the Government sets out the legislation which is being worked upon across Government and that is relevant to addressing economic crime, and provides an assessment of the measures that might be required to be brought in through an Economic Crime Bill, …
Government response. We recommend that, in its response to this Report, the Government sets out the legislation which is being worked upon across Government and that is relevant to addressing economic crime, and provides an assessment of the measures that might be …
HM Treasury
13
Conclusion
Eleventh Report - Economic Crime
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 illegal content”, thereby requiring online firms to be proactive rather …
Government response. We note that the Committee has called for Government to include fraud offences in the list of ‘relevant offences’ in Clause 41(4) of the Online Safety Bill. The Government agrees with the Committee that user-generated fraud is a serious issue …
HM Treasury
14
Recommendation
Eleventh Report - Economic Crime
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. We note that the Committee has called for Government to include fraud offences in the list of ‘relevant offences’ in Clause 41(4) of the Online Safety Bill. The Government agrees with the Committee that user-generated fraud is a serious issue …
HM Treasury
15
Recommendation
Eleventh Report - Economic Crime
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. We agree that understanding who is publishing material is an important step in reducing the risk that platforms are used to promote fraudulent content. Under the Online Safety Bill, the government will have the power to introduce secondary legislation mandating …
HM Treasury
16
Recommendation
Eleventh Report - Economic Crime
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 not made such commitments to follow suit.
Government response. We welcome the steps taken by 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 understand that under UK law, financial promotions communicated …
HM Treasury
17
Recommendation
Eleventh Report - Economic Crime
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 enforce the regulations.
Government response. We note that the Committee’s report recommended that the Government should ensure that financial services advertising regulations apply online and that the FCA has the necessary powers to effectively enforce the regulations. We would like to clarify our view of …
HM Treasury
18
Recommendation
Eleventh Report - Economic Crime
It is not appropriate that online companies should profit both from paid-for advertising for financial products and from warnings issued on their platforms by the Financial Conduct Authority (FCA) about those advertisements. We urge all online companies to work constructively with the FCA and to follow Google’s example by giving …
Government response. We strongly agree with the view expressed in the report that it is not appropriate that online companies should profit both from paid for advertising for financial services and also from warnings we place on the same platforms about those …
HM Treasury
19
Conclusion
Eleventh Report - Economic Crime
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 the detriment of the outcomes for consumers already achieved through …
Government response. We note the recommendation that the Government consider whether online companies should be required to contribute compensation when fraud takes place using their platforms. Relatedly, we understand that the Joint Committee on the Online Safety Bill has recommended both: • …
HM Treasury
20
Recommendation
Eleventh Report - Economic Crime
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. We note the recommendation that the Government consider whether online companies should be required to contribute compensation when fraud takes place using their platforms. Relatedly, we understand that the Joint Committee on the Online Safety Bill has recommended both: • …
HM Treasury
21
Conclusion
Eleventh Report - Economic Crime
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 on online firms to prevent harm from fraud and other …
Government response. The government takes the threat of economic crime extremely seriously and has developed robust processes to ensure an effective and coordinated response. This involves departments across government, regulatory and enforcement agencies, and the private sector, reflecting the wide-ranging impacts of …
HM Treasury
22
Conclusion
Eleventh Report - Economic Crime
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 correct to recognise in this area, as in the Economic …
Government response. The government takes the threat of economic crime extremely seriously and has developed robust processes to ensure an effective and coordinated response. This involves departments across government, regulatory and enforcement agencies, and the private sector, reflecting the wide-ranging impacts of …
HM Treasury
23
Recommendation
Eleventh Report - Economic Crime
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 comply with regulatory requirements. (Paragraph 105) Authorised push payment fraud
Government response. The government takes the threat of economic crime extremely seriously and has developed robust processes to ensure an effective and coordinated response. This involves departments across government, regulatory and enforcement agencies, and the private sector, reflecting the wide-ranging impacts of …
HM Treasury
24
Conclusion
Eleventh Report - Economic Crime
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 reduce fraud.
Government response. Our initial work on APP scams led to the introduction of the CRM Code in May 2019. Since then, there has been a considerable amount of progress to protect victims and improve incentives for payment service providers (PSPs) to prevent …
HM Treasury
25
Conclusion
Eleventh Report - Economic Crime
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 be made mandatory in 2019. Since then, nearly three years …
Government response. We recognise that there is still a lot of work to do to stop fraud from happening, to reduce APP scams, and improve consistency and coverage of protection of victims. In February 2021 we published a call for views on …
HM Treasury
26
Recommendation
Eleventh Report - Economic Crime
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 processes to enable quicker implementation of measures to protect consumers …
Government response. Our initial work on APP scams led to the introduction of the CRM Code in May 2019. Since then, there has been a considerable amount of progress to protect victims and improve incentives for payment service providers (PSPs) to prevent …
HM Treasury
27
Conclusion
Eleventh Report - Economic Crime
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 and enhancing the service.
Government response. In February this year, we 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. This will enable a wider group of …
HM Treasury
28
Recommendation
Eleventh Report - Economic Crime
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. We would welcome the opportunity to provide the Committee with a progress report by the end of 2022.
HM Treasury
29
Conclusion
Eleventh Report - Economic Crime
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 the PSR should ensure that banks act quickly in putting …
Government response. We recognise the role that data plays in the fight against APP scams. Our proposal on data sharing aims to improve intelligence sharing between PSPs about the risks of payments, which should improve scam prevention. A number of PSPs, along …
HM Treasury
30
Conclusion
Eleventh Report - Economic Crime
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 to improve anti-money laundering systems and the ability of law …
Government response. The government recognises the need for increased spending to tackle economic crime. That is why we have legislated for a new Economic Crime (Anti-Money Laundering) Levy which will raise around £100 million per year to help fund anti-money laundering measures.7 …
HM Treasury
31
Conclusion
Eleventh Report - Economic Crime
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 recognises the need for increased spending to tackle economic crime. That is why we have legislated for a new Economic Crime (Anti-Money Laundering) Levy which will raise around £100 million per year to help fund anti-money laundering measures.7 …
HM Treasury
32
Conclusion
Eleventh Report - Economic Crime
A timeline showing when the SARs reform programme milestones are expected to be met, and an annual progress report on the programme, should be provided to this Committee.
Government response. The government recognises the need for increased spending to tackle economic crime. That is why we have legislated for a new Economic Crime (Anti-Money Laundering) Levy which will raise around £100 million per year to help fund anti-money laundering measures.7 …
HM Treasury
33
Conclusion
Eleventh Report - Economic Crime
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 make available all the resources needed by the Home Office, …
Government response. The government has developed a sustainable funding model that demonstrates its commitment to tackling economic crime. As aforementioned, the combination of last year’s Spending Review settlement and private sector contributions through the Economic Crime (Anti Money Laundering) levy will provide …
HM Treasury
34
Conclusion
Eleventh Report - Economic Crime
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.
Government response. The National Economic Crime Centre (NECC) Public Private Partnerships have two Public Private Threat Groups which are focused on Money Laundering and Fraud. These groups have focused on driving greater cooperation between a range of private partners and the NECC …
HM Treasury
35
Conclusion
Eleventh Report - Economic Crime
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 that it supervises. There needs to be a plan to …
Government response. We welcome the report’s recognition of the progress OPBAS has achieved. Over the last four years, under the supervision of OPBAS, the Professional Body Supervisors (PBS) have made significant improvements in their compliance with their obligations under the MLRs. OPBAS …
HM Treasury
36
Recommendation
Eleventh Report - Economic Crime
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 that OPBAS has so far secured. The problems which OPBAS …
Government response. We welcome the report’s recognition of the progress OPBAS has achieved. Over the last four years, under the supervision of OPBAS, the Professional Body Supervisors (PBS) have made significant improvements in their compliance with their obligations under the MLRs. OPBAS …
HM Treasury
37
Recommendation
Eleventh Report - Economic Crime
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. We welcome the report’s recognition of the progress OPBAS has achieved. Over the last four years, under the supervision of OPBAS, the Professional Body Supervisors (PBS) have made significant improvements in their compliance with their obligations under the MLRs. OPBAS …
HM Treasury
38
Recommendation
Eleventh Report - Economic Crime
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 provide the assurance of independent assessment. (Paragraph 166) 76 Economic …
Government response. We welcome the report’s recognition of the progress OPBAS has achieved. Over the last four years, under the supervision of OPBAS, the Professional Body Supervisors (PBS) have made significant improvements in their compliance with their obligations under the MLRs. OPBAS …
HM Treasury
39
Conclusion
Eleventh Report - Economic Crime
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 seek to be more proactive in preventing TCSPs facilitating the …
Government response. Economic crime is a priority for law enforcement agencies, and the government is committed to ensuring enforcement can continue to make the UK an even more hostile place for illicit finance and economic crime. The sustainable funding model the government …
HM Treasury
40
Recommendation
Eleventh Report - Economic Crime
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 focus on what can be done to improve money laundering …
Government response. We welcome the report’s recognition of the progress OPBAS has achieved. Over the last four years, under the supervision of OPBAS, the Professional Body Supervisors (PBS) have made significant improvements in their compliance with their obligations under the MLRs. OPBAS …
HM Treasury
41
Recommendation
Eleventh Report - Economic Crime
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 regulation or enforcement systems are robust enough or up to …
Government response. We welcome the report’s recognition of the progress OPBAS has achieved. Over the last four years, under the supervision of OPBAS, the Professional Body Supervisors (PBS) have made significant improvements in their compliance with their obligations under the MLRs. OPBAS …
HM Treasury
42
Conclusion
Eleventh Report - Economic Crime
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 to others. The question is whether this was an isolated …
Government response. We welcome the report’s recognition of the progress OPBAS has achieved. Over the last four years, under the supervision of OPBAS, the Professional Body Supervisors (PBS) have made significant improvements in their compliance with their obligations under the MLRs. OPBAS …
HM Treasury
43
Recommendation
Eleventh Report - Economic Crime
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 186) Cryptoassets and economic crime
Government response. Whilst access to banking services is an important consideration for the FCA, firms have commercial freedom, subject to some restrictions, to choose who they do business with. They are responsible for setting their own business models and for setting their …
HM Treasury
44
Conclusion
Eleventh Report - 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 to bring advertising of cryptoassets into line with that of …
Government response. We recognise 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. However, like in other areas, different types of cryptoasset activities and business models …
HM Treasury
45
Recommendation
Eleventh Report - Economic Crime
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.
Government response. We recognise 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. However, like in other areas, different types of cryptoasset activities and business models …
HM Treasury
46
Recommendation
Eleventh Report - Economic Crime
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 firms in 2020, there are so many firms which have …
Government response. We recognise 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. However, like in other areas, different types of cryptoasset activities and business models …
HM Treasury
47
Recommendation
Eleventh Report - Economic Crime
While we acknowledge the need to ensure that the gateway for registration of cryptoasset firms for anti-money laundering should be a rigorous process, registration has been too slow. It needs to be speeded up, and the Government should work with the FCA to find a solution. The FCA should not …
Government response. 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 that the Government publishes an annual account of its spending on economic …
HM Treasury
48
Recommendation
Eleventh Report - Economic Crime
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 recognises the need for increased spending to tackle economic crime. That is why we have legislated for a new Economic Crime (Anti-Money Laundering) Levy which will raise around £100 million per year to help fund anti-money laundering measures.7 …
HM Treasury
49
Recommendation
Eleventh Report - Economic Crime
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 in 2017. The decision taken in 2020 to ask the …
Government response. The government has developed a sustainable funding model that demonstrates its commitment to tackling economic crime. As aforementioned, the combination of last year’s Spending Review settlement and private sector contributions through the Economic Crime (Anti Money Laundering) levy will provide …
HM Treasury
50
Conclusion
Eleventh Report - Economic Crime
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 House to modernise the legal framework and operations of Companies …
Government response. The government recognises the importance of delivering Companies House reform. HM Treasury has therefore provided BEIS with £63 million over the Spending Review period to facilitate reforms. This funding will ensure that the Economic Crime (Transparency and Enforcement) Act, and …
HM Treasury
51
Recommendation
Eleventh Report - Economic Crime
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 Government should seek ways to implement as many reforms as …
Government response. The government recognises the importance of delivering Companies House reform. HM Treasury has therefore provided BEIS with £63 million over the Spending Review period to facilitate reforms. This funding will ensure that the Economic Crime (Transparency and Enforcement) Act, and …
HM Treasury
52
Recommendation
Eleventh Report - Economic Crime
The Government should supply us with details of the project milestones for the Companies House transformation programme, together with an annual progress report.
Government response. The government recognises the importance of delivering Companies House reform. HM Treasury has therefore provided BEIS with £63 million over the Spending Review period to facilitate reforms. This funding will ensure that the Economic Crime (Transparency and Enforcement) Act, and …
HM Treasury
53
Conclusion
Eleventh Report - Economic Crime
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 to those in other countries, which would yield significant extra …
Government response. The government recognises that there is a balance to be struck between setting fees at a level that does not discourage entrepreneurship, whilst also providing a sustainable funding model for Companies House to deliver on its objectives. The government believes …
HM Treasury
54
Recommendation
Eleventh Report - Economic Crime
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 not deter genuine entrepreneurs, and would raise significant additional funding …
Government response. The government recognises that there is a balance to be struck between setting fees at a level that does not discourage entrepreneurship, whilst also providing a sustainable funding model for Companies House to deliver on its objectives. The government believes …
HM Treasury
55
Conclusion
Eleventh Report - Economic Crime
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 that needs to be taken in order to improve defences …
Government response. The government agrees that improving transparency of ownership of UK property is an important step in improving defences against misuse of UK assets and companies by criminals and kleptocrats. That is why the government prioritised the Economic Crime (Transparency and …
HM Treasury
56
Recommendation
Eleventh Report - Economic Crime
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 agrees that improving transparency of ownership of UK property is an important step in improving defences against misuse of UK assets and companies by criminals and kleptocrats. That is why the government prioritised the Economic Crime (Transparency and …
HM Treasury