Source · Select Committees · Treasury Committee
Recommendation 30
30
Paragraph: 141
The National Crime Agency is right to focus on Suspicious Activity Reports as a priority,...
Conclusion
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 enforcement Economic Crime 75 agencies to handle large numbers of SARs quickly and effectively, so as to make full use of them in the fight against economic crime and organised crime more generally.
Paragraph Reference:
141
Government Response
Not Addressed
HM Government
Not Addressed
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 In line with the principle of transparency set out by the Levy consultation document, the government intends to remain accountable for the spending of the money raised by publishing an annual report on the levy, in addition to a more wide-ranging review of the levy by the end of 2027. These mechanisms will provide transparency to industry and levy payers on how the policy is performing, including how the money is being spent. The Levy, combined with funding announced at last year’s Spending Review, collectively represents a package of around £400 million to tackle economic crime until 2025. For example, the government is delivering reforms set out in the Economic Crime Plan with approximately £100m to be spent on tackling fraud specifically. Among other measures, this investment is intended to deliver Suspicious Activity Reports (SARs) reform and support efforts to tackle illicit finance. This investment will increase intelligence capabilities in the National Crime Agency (NCA) and the national security community to identify and disrupt the most harmful criminals and serious organised criminal gangs. It will also establish a new fraud investigative function in the NCA. We are also increasing law enforcement investigative capacity in the City of London Police, as national lead force for fraud, and in Regional Organised Crime Units across England and Wales. The government also 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 the legislation being introduced in the Third 7 Economic Crime (Anti-Money Laundering) Levy - GOV.UK (www.gov.uk)