His Majesty's Revenue and Customs (HMRC) should improve how it
prevents and investigates internal fraud and corruption, the
police inspectorate found.
His Majesty's Inspectorate of Constabulary and Fire & Rescue
Services (HMICFRS) inspected how effective HMRC is at preventing
and investigating internal corruption. The inspection examined
governance, resources, training, policies and intelligence
processes.
HMRC manages significant amounts of money and its officers have
access to taxpayers' personal data, and therefore infiltrating
HMRC is an attractive prospect for organised crime groups. The
inspectorate said HMRC should adopt very robust measures to
reduce its vulnerability to internal fraud or computer misuse.
At the time of the inspection, HMICFRS found that HMRC's
pre-employment and vetting checks, and other HR processes, didn't
always stop unsuitable people gaining or continuing employment at
the organisation. The inspectorate also raised concerns with
governance and intelligence gathering arrangements.
HMICFRS said that since this inspection, HMRC has made some
positive changes to governance arrangements in relation to
counter-corruption, including a new structure that brings
oversight of internal fraud, bribery, corruption and insider
threat under one single lead.
His Majesty's Inspector of Constabulary Lee Freeman KPM
said:
HMRC manages a significant amount of public money and holds
sensitive personal data on millions of people. The department
should act to address the concerns we have identified and protect
itself from the risks posed by internal fraud, computer misuse
and the potential for infiltration by organised crime groups.
