Economic Crime Strategic Board minutes and agenda: 29 March 2023
Published 23 May 2023
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Agenda
Date: 29 March 2023
Time: 14:00 – 15:30
Location: Home Office
- Welcome and introductions
- Overall ambition and threat picture
- Economic Crime Plan 2 – areas for joint working
- Economic Crime Plan 2 next steps
- AOB
Welcome and introductions
1. The Home Secretary welcomed attendees to the Board and thanked them for their support in developing the second Economic Crime Plan. The Home Secretary noted the significant progress made since the last meeting of the Board and added that the public-private partnership is central to tackling economic crime.
2. UK Finance welcomed work on the second Economic Crime Plan. It was noted that the Plan must focus on effectiveness, system prioritisation and a dynamic public-private partnership.
3. The Board welcomed the inclusion of the tech and telco sectors and the attendance of Meta and BT for the first time. The Board and Home Secretary noted the request to include OFCOM at the next Economic Crime Strategic Board due to the importance of the measures in the Online Safety Bill.
4. The Board noted the papers submitted by the Civil Society Organisations Steering Group.
Action: include OFCOM in future ECSB meetings.
Overall ambition and threat picture
5. Baroness Penn noted measurable progress in delivering the first Economic Crime Plan and a strengthened public-private partnership. Baroness Penn added that Economic Crime Plan 2 represents a significant effort to improve the response to economic crime, supported by HMG investment and the Economic Crime (Anti-Money Laundering) Levy, which together represent £400m of investment in the Plan within the current spending review period.
6. The National Economic Crime Centre (NECC) updated on the threat posed by economic crime, of which global instability and the cost-of-living crisis are significant drivers. The NECC also raised the convergence of cryptoassets and cash, with examples of organised crime groups using a variety of different methodologies to facilitate money laundering. The NECC explained ongoing work to prevent fraud upstream, online, and overseas, including working more closely with social media companies who can tackle fraud at scale, while retaining a law enforcement ‘pursue’ response for the highest harm individuals. The cross over between cyber and fraud was also discussed.
7. The Bank of England welcomed the second Plan. From a macroeconomic perspective, fraud was described as a drag on the economy and growth. In the context of current turmoil in the banking system globally, it was noted that credibility is easily lost in a digitised economy, and cryptoassets and cyber were areas of focus for the Bank.
8. Board members noted the importance of sharing knowledge across the system.
9. The Board discussed the threat posed by professional service providers unwittingly facilitating money laundering, and the importance of continuing to focus on education and awareness campaigns.
10. The Board also noted the need to retain expertise in the regulatory sector.
Economic Crime Plan 2 – areas for joint working
Fraud
11. The Security Minister noted the upcoming publication of the Fraud Strategy, emphasising the need for government, law enforcement and industry to work together across all sectors to design out fraud. The Security Minister added that changes will be implemented through the Online Safety Bill and Economic Crime and Corporate Transparency Bill and underlined the importance of companies sharing data to prevent fraud and build on the success of existing retail banking and telecoms sector charters. He asked the private sector to commit to working across sectors and with government to cut fraud.
12. The Board discussed measures being taken across tech, telcos and financial services to stop fraud at source. The Board noted the need for the implementation of the Online Safety Bill at pace, the importance of information and data sharing across the system, including with social media and telcos, and education to help stop fraud at source. It was emphasised that action could be taken before the Online Safety Bill came into force.
13. A regular ministerial session on data sharing between industries including the financial sector, tech, and telcos including OFCOM and Information Commissioner’s Office was suggested.
14. The Board noted the need to bring visible examples to the table where fraudsters have been identified and brought to justice. Attendees noted the growing capability and capacity across policing detailed by the City of London Police, including the new Action Fraud system, and noted the importance of consumer confidence in reporting fraud.
Action: Home Office to convene a working group on data sharing between industries.
Reducing money laundering
15. Minister Hollinrake presented the significant changes being made to Companies House. He highlighted the importance of ensuring the integrity of the Beneficial Ownership register and the role information sharing could play in this and noted ways to help maintain the integrity of the database.
16. The Board discussed addressing vulnerabilities in Companies House. Suggestions included giving Companies House the power to check information provided to it and the appropriate degree of supervision. The Home Secretary noted that the reforms are game changing.
Combatting kleptocracy and driving down sanctions evasion
17. HM Treasury commented on an unprecedented and successful year of public and private sector collaboration on sanctions policy. The importance of working with the private sector to address outstanding challenges to maintain momentum was noted.
18. The Board discussed the scale and novelty of sanctions and commented on the implementation challenges caused by the volume, speed and complexity of measures imposed by the UK, US and EU.
19. Board members highlighted that different approaches to sanctions implementation across jurisdictions were a challenge, for example on ownership and control. The Board identified the need for continued close working to further improve the UK’s response and agreed that the public private partnership would play a key role in enhancing information sharing.
Next steps
20. The meeting was closed by the Home Secretary who noted the tangible successes that had been highlighted by attendees. The Home Secretary added that the public-private partnership is integral to progress, and she is keen to move forward to build on actions and achieve real progress on milestones.
21. The Home Secretary thanked attendees for their attendance and leadership. Economic Crime Plan 2 was approved for publication.
| Attendees | |
|---|---|
| Rt Hon Suella Braverman KC MP | Home Secretary, Chair |
| Baroness Penn | Treasury Lords Minister |
| Rt Hon Tom Tugendhat MBE VR MP | Minister of State for Security |
| Alison Rose | Group Chief Executive Officer, NatWest |
| Angela McLaren | City of London Police Commissioner |
| Bob Wigley | Chief Executive, UK Finance |
| Chloe Squires | Director General, Homeland Security |
| David Postings | Chair, UK Finance |
| Dave Ramsden | Deputy Governor, Bank of England |
| David Reed (dial-in) | Director, Sanctions, FCDO |
| Duncan Tessier | Director, Economic Crime, Home Office |
| Duncan Wiggetts | Executive Director, Institute of Chartered Accountants in England and Wales |
| Giles Thomson | Director, Office of Financial Sanctions Implementation and Economic Crime, HM Treasury |
| Graeme Biggar (dial-in) | Director General, NCA |
| Hannah Gurga | Director General, Association of British Insurers |
| Howard Watson | Chief Security and Networks Officer, BT Group |
| Ian Stuart (dial-in) | Chief Executive Officer, HSBC UK |
| Jayne Opperman (dial-in) | Chief Executive Officer, Consumer Relations, Lloyds |
| Julian David | Chief Executive Officer, techUK |
| Kelby Harmes | Director, Attorney General’s Office |
| Kevin Hollinrake MP | Minister for Enterprise, Markets and Small Business, DBT |
| Lindsey Whyte (dial-in) | Director General, International, HMT |
| Lisa Osofsky | Director, Serious Fraud Office |
| Mark Cheeseman | Chief Executive, Public Sector Fraud Authority |
| Martin Swain (dial-in) | Director of Intelligence and Law Enforcement, Companies House |
| Matt Twist | Assistant Commissioner, Metropolitan Police |
| Max Hill KC (dial-in) | Director of Public Prosecutions, Crown Prosecution Service |
| Nikhil Rathi | Chief Executive, Financial Conduct Authority |
| Paul Philip (dial-in) | Chief Executive, Solicitor’s Regulation Authority |
| Paul Scully MP (dial-in) | Minister for Tech and Digital Economy |
| Pete O’Doherty (dial-in) | City of London Police Assistant Commissioner |
| Philip Milton | Public Policy Manager, Meta |
| Richard Las | Director, Fraud Investigation Service, HMRC |
| Rob Jones | Director General, NECC |