The UK Government is ‘continuing to strengthen the capabilities of law enforcement, the justice system and private sector to detect, deter and disrupt economic crime’. That is according to a ‘statement of progress’ on how government is delivering against an ‘Economic Crime Plan’, published in July 2019.
However it does not appear that the state will have any more resources to take on fraud, the UK’s largest volume crime; for the statement says that elected Police and Crime Commissioners and police forces are ‘to develop their capability to respond to fraud within existing capacity’. Meanwhile the document admits that the threat of public sector fraud has increased since 2019; as for the rapid rollout of covid-19 support schemes in spring 2020, the document admits that ‘minimised fraud risks through preventative measures where possible, but nevertheless accepted the higher risks of fraud loss’.
The plan sets out seven ‘priority areas’ as agreed in January 2019 by the Economic Crime Strategic Board (ECSB), a ministerial level public-private board; chaired by the Home Secretary and the Chancellor of the Exchequer. The seven cover:
– a better understanding of the threat posed by economic crime and performance in combatting it;
– better sharing and use of information to combat economic crime by the public and private sectors;
– ensure powers, procedures and tools of law enforcement, the justice system and private sector are as effective as possible;
– strengthen the capabilities of law enforcement, the justice system and private sector to detect, deter and disrupt such crime;
– greater resilience to economic crime through management of economic crime risk in the private sector and a risk-based approach to supervision, for example money laundering;
– improve systems for transparency of ownership of legal entities and legal arrangements, for example through Companies House; and
– international strategy.
The plan is heavy on reviews, talk and words rather than action. Among the ‘deliverables’ for example under the private-public joint response to fraud, the UK is supposed to see this year ‘sector charters’ whereby industry agrees to ‘design out fraud at source’. A first tranche will cover retail banking, telecommunications and accountancy; and a second tranche will include what the statement describes as ‘Ministerial engagement with social media and ‘big tech’ representatives’. Also due by the end of the year is a ‘public consultation on measures to enhance how online advertising is regulated in the UK, including considering further regulation to tackle harms including fraud vectored through misleading or fake advertising’. Also due is a ‘Fraud Action Plan for 2022-2025’ that sets out a national approach to tackling fraud.
Somewhat more practical is – due for starting by July – a ‘next generation fraud and cyber crime reporting and analysis service’ that the City of London Police is leading on (as the lead force for fraud, making it in charge of the much-mocked Action Fraud reporting line, which only after a year of covid pandemic stopped saying on its website home page that it was running a ‘reduced service’). Police including the National Crime Agency are by next year to scope ‘a national cyber crime force focused on fraud that will deliver more fraud investigations and disruptions, and a more coordinated response’.
As for suspicious activity reporting – which is generally agreed to be swamped by sheer numbers of reports – the statement says that ‘SARs IT reform is progressing, with the development of a new IT system for reporters, UKFIU and law enforcement set for delivery from 2021’. The statement mentions what was mentioned in the 2020 Budget; an ‘Economic Crime Levy’, ‘projected to raise £100m a year from the AML-regulated [anti money laundering] sector’. As the statement says that £100m means ‘opportunities to fund additional initiatives important to the public and private sectors to counter economic crime’. Separately, criminal suspended funds in accounts might be used to reimburse victims of fraud.
Action Fraud and other police and public sector shortcomings against fraud were featured in the April print edition of Professional Security magazine.
Comment
In a foreword to the statement Home Secretary Priti Patel and Chancellor Rishi Sunak said that they were ‘committed to driving this agenda forward across government and the private sectors’. Priti Patel said: “I will not tolerate criminals lining their pockets with dirty money at the expense of law-abiding citizens. This statement shows we have made progress, but it’s vital we continue to work with the private sector and law enforcement to win the fight against economic crime.”
For the plan and the statement of progress visit gov.uk.
