Economic Crime Strategic Board January 2019 agenda and minutes
Updated 12 July 2019
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Agenda
Date:14 January 2019
Time: 12.30pm to 2pm
Location:
Room 3.46
Ministerial Conference Room
2 Marsham Street
London
SW1P 4DF
1. Context and terms of reference
- ambition for Economic Crime Strategic Board (ECSB)
2. Economic crime threat update
- update from the Director-General of the National Economic Crime Centre
- discussion of new and emerging threats
3. Financial Action Task Force (FAFT) mutual evaluation
- outcomes of the evaluation
- priorities emerging from the evaluation
4. Public-private plan for economic crime
- purpose of the public-private plan
- discussion of reform priorities
Minutes
Date: 14 January 2019
Time: 12.30 to 14.00
Location:
Room 3.46
Ministerial Conference Room
2 Marsham Street
London
SW1P 4DF
Participants: See Annex A
Executive Summary
1. Participants were thanked for attending the ECSB바카라 사이트s inaugural meeting. Economic crime was a very important issue for the public and private sectors and the high-level representation at the ECSB demonstrated the senior commitment to this agenda across both sectors. The private sector was thanked for its contribution.
2. The ECSB was established to enhance the economic crime response and members can all do more. The ECSB would provide overarching strategic direction for this agenda, which would become particularly important as the UK exited the European Union.
Item 1 바카라 사이트 context and terms of reference
3. The ECSB heard that the government has stepped up its economic crime response, as demonstrated by the 2018 investment of Β£48 million in enhanced law enforcement capabilities with the new National Economic Crime Centre (NECC), National Data Exploitation Centre (NDEC) and National Assessment Centre (NAC). But there was more to do, given the threat economic crime posed to all three of the UK바카라 사이트s national security objectives: to protect our people; project our global influence; and promote our prosperity. The board endorsed these comments and highlighted the importance of robust governance and a sustainable funding model for economic crime.
Item 2 바카라 사이트 Economic crime threat update
4. The background to the NECC was set out. Established as part of a broader investment in the government바카라 사이트s capabilities against illicit finance, its purpose was to drive collaboration on economic crime across the public and private sectors. It would be complemented by the NDEC, which will transform law enforcement바카라 사이트s data acquisition, exploitation and visualisation capabilities and the NAC, which will provide a single authoritative view of the threat based on policing, law enforcement, intelligence agencies and industry intelligence.
5. Current and emerging risks were set out. Trade-based money laundering and laundering through capital markets were an evolving threat. There were ongoing examples of cash-based laundering: NECC cooperation with one bank had helped identify a ring that had laundered Β£75 million in cash in one year. Cryptocurrencies바카라 사이트 use in money laundering was small but growing. Professionals (lawyers, accountants and trust and company service providers (TCSPs)) continued to play an important role in facilitating laundering, with one TCSP involved in a significant sanctions evasion case.
6. Actors in Russia and China were the biggest offshore money laundering threat. There is evidence of links between serious organised criminals engaged in economic crime and hostile state apparatus. Russia, Pakistan and Nigeria were key source countries for politically exposed persons (PEPs) involved in corruption. The board also discussed the tension in doing business with jurisdictions that were viewed as 바카라 사이트safe바카라 사이트 but let laundered funds into the international system.
7. Other issues were discussed including insider trading, which is the greatest market abuse threat. Bank insiders were a key risk. Authorities in sectors which own community assets (such as the sports sector) were also mentioned. Capital markets and mirror trading were an evidence gap. Reform of the suspicious activity reporting (SAR) regime was needed, and the private sector was valued for identifying intelligence and cases to investigate.
8. It was advised that in future, tightened regulations would drive professional launderers to new methods and less regulated sectors. Similarly, as banks decided to not accept third party cash, launderers would target banks that did. The board also reflected on the need to sustain the pace of technology but manage risks emerging.
9. ECSB valued having public and private representatives discuss the economic crime threat and they agreed to a shared public-private assessment.
Action: NECC to lead production of a public-private threat assessment for consideration at the next ECSB in July.
Item 3 바카라 사이트 Financial Action Task Force (FATF) mutual evaluation
10. The Board noted that FATF바카라 사이트s evaluation of the UK바카라 사이트s anti-money laundering and counter-terrorism financing regime found the UK had the most effective system of any country assessed so far. As the UAE바카라 사이트s mutual evaluation was coming up, it was suggested we work collaboratively with them to enhance their regime.
11. Though there was agreement that we had done well on the FATF report, it was noted that there were three main gaps identified. The first was on SARs reform, which should move from design to delivery. On the second, there was much to do to enhance professional body supervisors바카라 사이트 risk-based approach, and FCA should review risks regularly. The third was Companies House바카라 사이트s information quality. The discussion touched on the need for open de-risking discussions. Professional body supervisors might need stronger enforcement powers.
Item 4 바카라 사이트 Public-private economic crime plan
12. An economic crime plan was proposed with an agreed vision, definitions and 7 strategic priorities. In the complex economic crime ecosystem, ECSB supported a joint plan, with the right governance. Asks of the private sector needed to be holistic, sensible and clearly prioritised to maximise effectiveness. The private sector would provide resources to develop the plan but needed clarity on where they are invested.
13. Several priorities were discussed, including the importance of data sharing capabilities for disrupting criminal activity. The focus on international cooperation and multinational institutions was welcomed. It was highlighted that NGOs support international improvements in beneficial ownership transparency. Further work was being done on how to sanction fraudsters and those criminals who fail to pay their asset confiscation orders, through lifetime offender management. Though the UK바카라 사이트s understanding of risk was positive and a real competitive advantage, the risk profile is not static.
14. In summary, the need for a joint resourcing plan and a strategic communications plan was noted. Prioritisation was important and there was a possible tension between cost-effective reforms and other factors. The FATF report showed exactly where the UK ought to be on transparency. We need to constantly re-evaluate to remain in the regulatory 바카라 사이트sweet spot바카라 사이트.
Action: HM Treasury/Home Office/UK Finance to lead production of a public-private economic crime plan for consideration at next ECSB.
Annex A - list of attendees
| Organisation / Role | Name |
|---|---|
| Home Secretary (co-chair) | Sajid Javid |
| Chancellor of the Exchequer (co-chair) | Philip Hammond |
| Security and Economic Crime Minister 바카라 사이트 Home Office | Ben Wallace |
| Economic Secretary to the Treasury 바카라 사이트 HM Treasury | John Glen |
| Secretary of State for Justice 바카라 사이트 Ministry of Justice | David Gauke |
| Parliamentary Undersecretary of State, Minister for Small Business, Consumers and Corporate Responsibility 바카라 사이트 BEIS | Kelly Tolhurst |
| Anti-Corruption Champion | John Penrose |
| Solicitor General | Robert Buckland |
| Home Office 바카라 사이트 Permanent Secretary | Sir Philip Rutnam |
| HM Treasury 바카라 사이트 2nd Permanent Secretary | Charles Roxburgh |
| Department of Justice Northern Ireland 바카라 사이트 Permanent Secretary | Peter May |
| Scottish 바카라 사이트 바카라 사이트 Deputy Director of Defence, Security and Cyber Resilience Division | Linda Hamilton |
| Home Office 바카라 사이트 Director General, Serious and Organised Crime Group | Julia Kinniburgh |
| Home Office 바카라 사이트 Director of Economic Crime, Cyber and Anti-Corruption | Richard Riley |
| HM Treasury 바카라 사이트 Director, International | Veda Poon |
| HMRC 바카라 사이트 Director General of Customer Compliance | Penny Ciniewicz |
| Bank of England 바카라 사이트 Executive Director of Banking | Victoria Cleland |
| Director of Public Prosecutions | Max Hill |
| Serious Fraud Office 바카라 사이트 Director | Lisa Osofsky |
| National Economic Crime Centre 바카라 사이트 Director General | Richard Westlake |
| Financial Conduct Authority 바카라 사이트 Chief Executive | Andrew Bailey |
| National Police Chiefs바카라 사이트 Council 바카라 사이트 Chair | Sara Thornton |
| City of London Police Commissioner | Ian Dyson |
| Association of Police and Crime Commissioners | Clive Grunshaw |
| City of London 바카라 사이트 Chief Executive | John Barradell |
| UK Finance 바카라 사이트 Chairman | Bob Wigley |
| Barclays Bank 바카라 사이트 Chief Executive Officer | Jes Staley |
| HSBC Holdings plc 바카라 사이트 Chief Executive Officer | Ian Stuart |
| Lloyds Bank 바카라 사이트 Chief Executive Officer | AntΓ³nio Horta OsΓ³rio |
| Royal Bank of Scotland 바카라 사이트 Chief Risk Officer | Bruce Fletcher |
| Santander UK 바카라 사이트 Chief Legal and Regulatory Officer | John Collins |
| Morgan Stanley 바카라 사이트 Chief Executive Officer | Clare Woodman |
| Standard Chartered Bank 바카라 사이트 Group Head, Conduct, Financial Crime and Compliance | Tracey McDermott |
| Nationwide 바카라 사이트 Board Director | Chris Rhodes |
| The Law Society 바카라 사이트 Chief Executive Officer | Paul Tennant |
| Solicitors Regulation Authority 바카라 사이트 Chief Executive Officer | Paul Philip |
| Consultative Committee of Accountancy Bodies 바카라 사이트 Senior Board Member of BDO | Gervase MacGregor |
| National Association of Estate Agents 바카라 사이트 Managing Director | Mark Hayward |
| Investment Association 바카라 사이트 Chief Executive Officer | Chris Cummings |