UK Government releases new Economic Crime Plan

The UK Government has released a 76 page document which lays out its key priorities for the rest of its current parliamentary ruling to thwart money laundering and other monetary-based criminal acts.

Dubbed the ‘Economic Crime Plan, 2019 to 2022’, it focuses on seven “priority areas” in order to oppose economic crime – this was initially agreed upon by a designated Economic Crime Strategic Board in January 2019. 

Priority areas include:

  • develop a better understanding of the threat posed by economic crime and our performance in combating economic crime
  • pursue better sharing and usage of information to combat economic crime within and between the public and private sectors across all participants
  • ensure the powers, procedures and tools of law enforcement, the justice system and the private sector are as effective as possible
  • strengthen the capabilities of law enforcement, the justice system and private sector to detect, deter and disrupt economic crime
  • build greater resilience to economic crime by enhancing the management of economic crime risk in the private sector and the risk-based approach to supervision
  • improve our systems for transparency of ownership of legal entities and legal arrangements
  • deliver an ambitious international strategy to enhance security, prosperity and the UK’s global influence

The plan also incorporated views from the Chancellor (Philip Hammond), the Home Secretary (Sajid Javid), major financial institutions, legal, accountancy and property organisations, and law enforcement – including the UK Gambling Commission (UKGC).

The Home Office estimates the social and economic cost of fraud to individuals in England and Wales is £4.7 billion per year and the social and economic cost of organised fraud against businesses and the public sector in the UK is £5.9 billion. 

In 2018, UK Finance estimates that £1.2billion was stolen by criminals committing authorised and unauthorised fraud, with the banking sector estimated to have prevented a further £1.7 billion in unauthorised fraud.

Michael Harris, director financial crime compliance and reputational risk, LexisNexis Risk Solutions commented: “The government’s plan is certainly ambitious and challenging in terms of its 2022 completion date, but must be driven forward. It will need much-improved international co-operation to be a success.

“As part of the reforms involve technology updates, Government must consult with service providers and those on the front line fighting economic crime to ensure that these efforts are actually effective.

“The rise in economic crime levels is now directly impacting the British public, with people falling victim to push-payments fraud and becoming money mules all too often. There needs to be more training and awareness for everyone if we are to truly fight this problem.”

UKGC

Since the UKGC is one of three UK statutory supervisors that monitors money laundering and possible criminal relationships, the Commission will support the development of key measures related to risk management, digital identity and enhancing international cooperation networks.

In a statement, UKGC said: “As a statutory supervisor under the money laundering regulations, the Commission endorses the plan and looks forward to contributing to its delivery.

“Gambling operators will play a vital role in assisting the Commission, and the UK Government, realise this step-change plan for combating economic crime in the UK, and we urge operators to pay close attention to the plan and amend their risk assessments, policies and other controls where necessary.”