PIMFA
Economic Crime Plan 2 Actions
- Money laundering and criminal assets
Limit Abuse of Corporate Structures (Actions 1-3): Proposals to reform the role of Companies House aim to improve transparency of UK companies and partnerships, combat economic crime and provide the Registrar with enhanced powers. The Economic Crime and Corporate Transparency Bill also introduces a failure to prevent fraud offence that holds companies criminally liable for fraud conducted by an employee, where procedures are not in place to prevent it.
Increase the effectiveness of the UK’s AML/CFT regulatory and supervisory regime (Actions 4-6): A review of the regime (June 2022) identified the need to ensure those businesses most vulnerable to abuse have strong and proportionate preventative measures in place. The review also proposed reform of the supervisory regime and HMT’s consultation on AML supervisory reform was published in July 2023. ECP 2 objectives cite public and private sector collaboration beyond technical compliance.
Combat Criminal Abuse of Cryptoassets (Actions 7-9): As crypto assets are an attractive technological enabler for criminal activity, Government proposes to robustly regulate cryptoasset activities to provide confidence to consumers and businesses.
Improve intelligence, feedback and analysis through Suspicious Activity Report (SARs) reform (Actions 10-11): SARs are a vital source of intelligence provided by the private sector alerting potential money laundering and terrorist financing. ECP2 intends to strengthen the UK Financial Intelligence Unit (UKFIU) and complete the delivery of the new SARs Digital Service with new law enforcement tools.
Recover more criminal assets (Actions 12-16): Both the Asset Recovery Action Plan[1] and first Economic Crime Plan delivered substantial reforms and asset recoveries under the Proceeds of Crime Act 2002 (POCA). ECP 2 cites a new Anti-Money Laundering and Asset Recovery (AMLAR) programme to increase intelligence and deliver improved technology.
Lead the cross-system operational response to money laundering (Action 17): The National Economic Crime Centre (NECC) leads the operational response to economic crime, with typologies of money laundering often identified through public-private partnership capabilities. The NECC aims for an improved intelligence picture of Professional Enablers through enhanced information sharing.
- Combat Kleptocracy and drive down sanctions evasion
Continuously improve financial sanctions, design, implementation and enforcement (Actions 18-20): Government is committed to provide guidance, support across the different sanctions regimes.
Strengthen operational and international response to kleptocracy (Actions 21-23): The expansion of the NCA’s Combatting Kleptocracy Cell (CKC) will target corrupt elites and support work on criminal breaches of sanctions. Government will continue to focus on identifying and disrupting ‘enablers’ across sectors who are knowingly complicit in laundering money and evading sanctions.
- Cut Fraud
The Fraud Strategy sets out three objectives:
- Pursue fraudsters, disrupt their activities and bring them to justice
- Block frauds at source by dramatically reducing the number of fraud and scam communications
- Empower people to recognise, avoid and report frauds and equip them to deal appropriately with frauds
Modernise the response and reduce the impact of fraud against the Public Sector (Actions 24-27): The Public Sector Fraud Authority (PSFA) supports the Government Digital Service to combat public sector fraud by delivering a single, secure log in for users of government services.
The impact of wider economic crime reforms and infrastructure on tackling fraud: Wider activity set out in ECP 2 will support efforts to tackle fraud (e.g. Economic Crime and Corporate Transparency Bill).
- Reduce the threat International Illicit Finance poses to the UK and UK interests (Actions 28-32)
As a leading global financial centre, the UK has a critical role to play in addressing the transnational problem of illicit finance and to protect the integrity and stability of the UK financial system. ECP 2 notes that Government will continue leading efforts to strengthen and effectively implement international standards.
Find out more about the Economic Crime Plan 2.
Cross Cutting System Reforms and Capabilities: ECP 2 includes a number of fundamental cross-cutting reforms and capabilities:
- System Prioritisation (Action 33): Public-private collaboration on economic crime is critical, with joint efforts having a demonstrable impact on the threat (i.e. JMLIT).
- Information Sharing, Data, and Technology (Actions 34-36): The new public-private economic crime data strategy will manage data better and improve the flows of information and intelligence between public and private organisations.
- Law Enforcement Capacity and Public Private Workforce Strategy (Actions 37-38): ECP 2 aims to significantly increase law enforcement capacity with greater collaboration and skills-sharing between the public and private sectors.
- Criminal Justice System (Actions 39-40): ECP 2 notes the need to continue to ensure that prosecutors and the court system have the right tools, capacity, and capability to tackle economic crime.
- Funding (Actions 41-42): Government funding underpins activities set out in ECP 2 (e.g. increasing capacity in law enforcement and investment in data and technology to maximise the prevention and detection of economic crime).
Measuring Progress and governance
- Develop an outcomes framework for ECP2 (Action 43): Government is developing an outcomes framework to enable it to provide a consistent focus on the outcomes set out and to help track and measure progress and performance across the system.
- Governance: The Economic Crime Strategic Board, chaired by the Home Secretary and Chancellor will continue to maintain strategic oversight of the Plan.
