Source · Select Committees · Treasury Committee
Recommendation 38
38
Acknowledged
We note the actions taken by HMRC since its previous inquiry to improve its performance...
Recommendation
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 Crime
Government response summary AI-generated
The government welcomes the report’s recognition of OPBAS' progress and states that OPBAS is now focusing on the effectiveness of the PBS AML supervision and will continue to evolve its approach to supervision.
Summary of the government's response below — read the verbatim text to verify.
Government Response
Acknowledged
HM Government · verbatim extract
Acknowledged
HMRC takes a risk-based approach to the supervision of the 37,000 firms it supervises, using a combination of on-site inspection and desk-based reviews to assess understanding and compliance, and taking robust action where failings are found. Throughout the pandemic, HMRC has continued to detect and address non-compliance, issuing sanctions, including 41 financial penalties and preventing inappropriate businesses from trading, suspending 14 MLR registrations and cancelling 11 others. In addition, HMRC have prevented 235 businesses from trading by refusing their registration. The individuals who undertake the HMRC self-assessment are appointed from outside the Economic Crime Supervision team in HMRC. They understand their obligation to undertake an impartial review of HMRC’s performance and report the assessment’s findings, both in a detailed internal review, agreed by HM Treasury, and a published public version. Both OPBAS and HM Treasury are consulted and sighted prior to finalisation of the reports.
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