Source · Select Committees · Treasury Committee
Recommendation 1
1
Paragraph: 33
The growth in economic crime and fraud is constantly evolving and poses a challenge to...
Conclusion
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 Economic Crime Plan, is a sensible approach. However, it can only work if there is extensive co-ordination at all levels, from Ministers to those on the ground who are enforcing the law. This might be simpler if a single Government Department or agency had responsibility for all policy aspects.
Paragraph Reference:
33
Government Response
Not Addressed
HM Government
Not Addressed
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 economic crime and the need for a comprehensive response in partnership with the private sector. The broad range of stakeholders involved in the policy, supervisory and operational response to economic crime means a robust governance structure is required. The Home Office and HM Treasury lead the policy response to economic crime for government and are responsible for coordinating the public-private Economic Crime Plan.1 It is right that these two departments jointly lead the government’s response, to support system leadership that fully considers the long-term ramifications of decisions that impact both the UK’s prosperity and security. The establishment of the National Economic Crime Centre (NECC) was an important step taken by the government. Hosted in the NCA it sets and leads the threat response to economic crime, ensuring the wide range of stakeholders are focused on the agreed strategic priorities where the system, collectively, can have the most impact on the threat. The Economic Crime Plan’s delivery and effectiveness is shaped and monitored through shared, regular, ministerial governance with cross-sectoral private sector members through the Economic Crime Strategy Board. This senior forum sets the strategic priorities for the UK’s response to economic crime. Below it, a number of other coordination and information-sharing forums meet regularly to review progress and ensure coordination of priorities across government on operational and transformational policy programmes. For example, the Economic Crime Delivery Board drives forward the development of economic crime policies, assesses the implementation of key reforms and brings together key departments and agencies. Russia’s invasion of Ukraine has only increased the importance and urgency with which the government will pursue our economic crime agenda. The UK has already imposed the most severe package of financial sanctions in history in response to Russia’s unprovoked and illegal invasion of Ukraine. Working with private sector and international partners, the government will continue to make it far more difficult for oligarchs and businesses to operate in an illicit manner outside their own borders. Further swift steps have been taken by the government on economic crime since the Committee’s report was published. Most notably, the government passed the Economic Crime (Transparency and Enforcement) Act on 15 March.2 This will: • Introduce a Register of Overseas Entities Beneficial Ownership of UK property to tackle foreign criminals using UK property to launder money. 1 Economic Crime (Transparency and Enforcement) Act 2022 (legislation.gov.uk) 2 Economic Crime (Transparency and Enforcement) Act 2022 (legislation.gov.uk)