The Treasury Committee is today launching a new inquiry into
economic crime. The inquiry will have two strands:
1) Anti-money laundering and the sanctions regime. The Committee
will examine the scale of money laundering, terrorist financing
and sanctions in the UK, the current regulatory and legislative
landscape, and how individuals, firms and the wider economy have
been impacted by these regimes and the implementation of them.
2) Consumers and economic crime. The Committee will scrutinise
the scale and nature of economic crime faced by consumers, the
effectiveness of financial institutions in combatting economic
crime, and the security of consumer’s data.
The Committee is now welcoming written evidence. Witnesses for
oral evidence sessions will be announced in due course.
Commenting on the launch of the inquiry, Rt Hon. MP, Chair of the Treasury
Committee, said:
“Given the threats that face the UK, the effectiveness of the
regimes that we use to protect our financial system from misuse
have never been more important.
“It has been claimed that the UK, particularly the London
property market, is becoming a destination of choice to launder
the proceeds of overseas crime and corruption – so-called ‘dirty
money’. One estimate suggests that up to £4.4 billion worth of UK
properties may have been bought with suspicious wealth.
“As part of our inquiry, the Treasury Committee will examine
the UK’s role in international efforts to tackle money laundering
and terrorist financing and implement sanctions.
“We will also look at economic crime at the consumer level,
including fraud and scams. As online banking and payments have
become more prevalent, there are now more opportunities for
fraudulent activity.
“The ONS has estimated that there were 3.2 million fraud
incidents for the year ending September 2017. As millions of
customers are exposed to the risk of economic crime, we’ll
scrutinise the response of the Treasury, its associated bodies
and the regulators, and explore the role that consumer education
can play.”
--Ends--
Notes to Editors
- The economic
crime inquiry webpage, where evidence can be submitted, will
be here. The deadline
for written evidence submissions is 10am on Tuesday 8 May.
- Transparency International ‘has identified £4.4 billion worth
of UK properties bought with suspicious wealth and more than a
fifth of these properties were purchased by Russian
individuals’. Link.
- The Office for National Statistics (ONS) has estimated that
there were 3.2 million fraud incidents for the year ending
September 2017. Link.
- It should be noted that the Committee does not consider
individual cases. Those submitting written evidence should be
careful not to prejudice ongoing investigations or ongoing
proceedings in court. Those wishing to report crimes should do so
to the relevant authorities.
- The full
terms of reference for the inquiry are as follows:
Terms of Reference
The Treasury Committee is undertaking an inquiry into economic
crime. This inquiry will have two strands: one looking at the
anti-money laundering and sanctions regime, and one considering
economic crime as it affects consumers. The terms of reference
for this inquiry can be found below.
The anti-money laundering, counter-terrorist financing and
sanctions regimes
The Committee would welcome evidence on:
- The scale of
money laundering, terrorist financing and sanctions violations in
the UK, and the means by which this activity is enabled
- The current
legislative and regulatory landscape, including any weaknesses in
the rules and their enforcement
- The
effectiveness of the Treasury and its associated bodies in
supporting and supervising the regimes
- The impact
of the implementation of the current regimes on individuals,
firms and the wider economy, including unintended consequences,
such as the removal/refusal of financial services from/to
individuals or firms
- The role of
financial institutions and/or professional bodies in these
regimes
- The UK’s role
in international efforts to tackle money laundering and terrorist
financing and implement sanctions
Consumers and economic crime
In relation to economic crime as it affects consumers, e.g.
consumer fraud, the Committee would welcome evidence on:
- The current
legislative and regulatory landscape, including any weaknesses
- The scale
and nature of economic crime faced by consumers, including
emerging trends
- The response
of the Treasury and its associated bodies to economic crime
consumers face
- Consumer
education, responsibility and vulnerability in relation to
economic crime
- The role and
effectiveness of financial institutions in combatting economic
crime that consumers face
- The
potential for technology and innovation to assist those
committing and combatting economic crime
- The security
of consumers’ data
