8 October 1997
THE NEW APPROACH TO CRIME FIGHTING
The Government is developing a series of proposals aimed at clamping down on the money laundering activities of criminal gangs, the Economic Secretary, Helen Liddell, announced today.
At the National Financial Investigators' Conference in Wakefield the Minister set out a series of measures, following a review of the UK's anti-money laundering regime, to tackle financial crime.
The proposals, currently being worked on, include:
- strengthening the role of the financial regulators in the fight against money laundering; stronger and more effective legal framework;
- increased attention to unregulated sectors, including company formation agents, money remitters and bureaux de change;
- strengthening the effectiveness of the National Criminal Intelligence Service (NCIS) at the heart of the system;
- more information for the public; and
- the removal of unnecessary obstacles to the exchange of confidential information between the police, the financial regulators and the Inland Revenue.
The Minister said that the UK already had one of the most effective and comprehensive anti money laundering regimes in the world, a fact recognised by the Financial Action Task Force. But there is no room for complacency. With the current reform of financial regulation, the criminal regime could not be ignored. She said:
"A City free of regulatory abuse but open to fraud, corruption and money laundering is not one that will survive and grow in the current international climate."
She applauded the revolutionary approach the investigators were using in tracking down financial activity. The Minister said:
"This goes much wider than pure money laundering - it is about a new approach to crime fighting.
"Dismantling the financial strands of a criminal gang is one of the best ways of putting them out of business - hitting them where it hurts, in their pocket."
NOTES TO EDITORS
- Further information on the proposals outlined by the Minister is attached.
- A summary of the Financial Action Task Force's most recent report on the UK, published in June 1997, is attached for ease of reference.
- For further information on the work of NCIS please contact Mark Steels, NCIS Press Office on 0171 238 8431.
- Media copies of the Minister's speech to the conference are available from the Treasury Press Office on 0171 270 5185. Other copies are available from the Treasury Public Enquiry Unit on 0171 270 4558.
Money Laundering Factsheet
An enhanced role for the Financial Regulators
All the regulators have endorsed and publicised the new Joint Money Laundering Steering Group Money laundering Guidance Notes and have agreed to co-operate more closely with NCIS in identifying the pattern of reports from regulated institutions.
Consideration is also being given to what explicit role the new Financial Services regulator might be given in this area.
Stronger and More Effective Legal Framework
The Treasury is looking - with the Home Office - at the law in this area to see if we can make it more usable. This could include for example:
- strengthening police powers to get production orders when investigating the not just the proceeds of crime but the profitable offences which generate them.
- enhanced confiscation powers - looking at the options for making it easier to confiscate criminal assets. Including powers to seize cash on import or export - in crimes other that drugs trafficking.
Increased attention to company formation agents, money remitters and bureaux de change
We are currently looking at ways to reduce the vulnerability of these unregulated sectors to being used by money launderers - for example by ways to improve these sectors - by supporting new industry guidance and taking a more systematic approach to monitoring compliance with the Money Laundering Regulations.
Increasing the effectiveness of NCIS
Working closely with NCIS to improve the service they provide, to further professionalise their analytical resources; to improve their IT support; and to strengthen their links with both the financial regulators and with financial institutions' Money Laundering Reporting Officers. The Treasury is also discussing with NCIS a formal service agreement.
More information for the public
Intend to publish an accessible leaflet for the public and small businesses to explain the legal responsibilities that flow from the money laundering legislation.
Improved information gateways
We intend to introduce legislation to remove some of the current obstacles which prevent police, financial regulators and the Inland Revenue from sharing confidential information in cases involving serious crime.