The UK Parliament’s Treasury Committee has launched an inquiry into economic crime and is seeking views on anti-money laundering, sanctions and the impact of these (and fraudulent activity more generally) on consumers. The inquiry will explore two key themes:

1. Anti-money laundering and sanctions

Submissions are sought from individuals and businesses on the impact and scale of money laundering and terrorist financing in the UK as well as experiences of the present regulatory and legal landscape. This comes amidst claims that the UK property market is being used to launder proceeds of overseas criminal activity.

In particular, the Committee is seeking 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 or refusal of financial services from or to individuals or firms;
  • The role of financial institutions and/or professional bodies in these regimes; and
  • The UK’s role in international efforts to tackle money laundering and terrorist financing and implement sanctions.

For our previous update on the proposed new UK sanctions laws provided for in the Sanctions and Anti-Money Laundering Bill, click here.

2. Consumers and economic crime

The Committee will also examine the nature, scale and impact on consumers of economic crime. The role that consumer education can play will be explored, as online banking and payments become the norm. The ONS estimates that there were some 3.2 million incidents of fraud committed in England and Wales for the year ending September 2017.

In particular, the Committee is seeking 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 that 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; and
  • The security of consumers’ data.

The inquiry is open for written responses until 8 May 2018.

If you’d like assistance in framing any submissions for the inquiry, or advice on any regulatory or corporate crime issues generally, please get in touch with one of the individuals below.