36 Serious and Organised Crime Strategy
the end-to-end asset recovery process Task Force (FATF), are intended to ensure so that the maximum profits are identified, controls and procedures are in place to pursued and recovered; and counter the risk of money laundering and terrorist financing across a number of sectors. • the Home Office and Ministry of Justice EU and UK legislation reflect these standards will draw on the success of the Fraud, by placing anti-money laundering (AML) Error and Debt Taskforce to apply to obligations on businesses to prevent misuse confiscation orders the successful of the financial system. techniques used to reduce benefit and tax fraud. This includes the use of behavioural insight techniques on targeted communication to late payers47 and advanced data mining to cross check information from across different government departments.
Recovery of hidden assets overseas 4.53 Criminal assets moved overseas can be hard to reach. We depend on mutual legal assistance from other countries to enforce orders on our behalf, and these orders may not be given priority. Some countries are witting or unwitting safe havens for criminal assets. 4.54 Agreement has been reached with Spain to facilitate the recovery of assets and make Spain a more hostile place for UK criminals. The Home Office has negotiated asset-sharing agreements with other countries, including China and the United Arab Emirates, to encourage them to enforce our orders. Levels of assets recovered from overseas against confiscation orders are low but improving. The Home Office will work with the Foreign and Commonwealth Office (FCO) and Crown Prosecution Service (CPS) to sign further asset-sharing agreements with other key countries including Romania, South Africa and Ghana. Anti-money laundering (AML) regulations 4.55 International standards, agreed by the 36 member states of the Financial Action 47
One pilot by HMRC using targeted text messages to previous late payers of tax produced a 5% improvement in payment of tax.
4.56 In October 2012, following a government review, amendments to the AML regulations came into force to reduce the regulatory burden and make the overall supervisory regime more robust, effective and proportionate. HMRC, for example, was given powers regarding the regulation of money service businesses (MSBs) which have already been used to good effect. The amendments added an information sharing gateway for all AML supervisors, allowing them to share information among themselves in the context of their AML duties, which means information and intelligence on specific threats and details of those involved in or supporting money laundering can be shared across sectors.
4.57 AML regulations have been tested by the development of new payment products and methods such as pre-paid cards and virtual currencies (such as Bitcoin) which can be used to launder proceeds of crime, fund illegal activities and where there is no obligation to report transactions to regulators. The Home Office and HM Treasury will review how current arrangements can be strengthened to address new payment products and methods. We will also consider if new developments in currency transfer should be brought within the remit of regulators, how to identify when such transactions enter and leave the regulated sector, and how to bring new products and virtual currencies more easily within the reach of POCA. This will be supported by HM Treasury and the Home Office work with law enforcement and the public and