Recommendation 3

HM Government · verbatim extract Accepted

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. Reform the UK’s Unexplained Wealth Orders regime, to remove key barriers faced by law enforcement and help target more corrupt elites. Strengthen the Treasury’s ability to take action against financial sanctions breaches. Enable Ministers to impose sanctions quicker and in concert with the UK’s allies. Noting the Committee’s comments regarding the pace of delivery, the government would also highlight that the NCA has rapidly established a ‘Combatting Kleptocracy Cell’. This will target the most egregious corrupt elites and their enablers through their assets hidden in the UK, including through criminal sanctions enforcement. The government has also published details of upcoming legislation planned for introduction in the Third Session. 3 Measures will include reform of Companies House, reforms to prevent abuse of limited partnerships, new powers to seize and recover illicit cryptoassets, and reforms to give businesses more confidence to share information on suspected money laundering. Turning to fraud, the government and law enforcement agencies relaunched the Joint Fraud Taskforce last year to clampdown on criminals through new partnerships across government and the private sector. The government, alongside the National Cyber Security Centre (NCSC), has also established a new Suspicious Email Reporting Service, which has led to the public submitting over 10 million suspicious emails. Since the takedown service launched in April 2020, over 76,000 online scams have been removed across 139,000 URLs. An additional proactive programme carried out by NCSC in partnership with the NECC and industry partners has led to the removal of over four million pieces of online criminal infrastructure used in fraud and cyber crime. Tackling fraud requires a unified and co-ordinated response from government, law enforcement and the private sector to better protect the public and businesses from fraud, reduce the impact of fraud on victims, and increase the disruption and prosecution of fraudsters. As part of its commitment to this agenda, this year the government will be publishing its 10-year Fraud Strate