Posts Tagged ‘UK News’
10.08.10 External consultants cannot act as a Nominated Officer under Money Laundering Regulations
Posted by: BTC in AML Legislation updates, HMRC News and Guidance, Professional Bodies on August 10th, 2010
As an external consultant I am usually in the situation where systems we devise for compliance starts with a simple policy statement, which firstly details who is and how to communicate with, the nominated officer, who will be a senior member of the firm, a director, partner or owner manager. We remind firms of their responsibilities under the Money Laundering Regulations, It is after all their business and they must accept reasonability for its successful running.
It does come as no surprise, therefore, that the Financial Services Authority (FSA) has recently censured and banned three directors from acting as senior managers for failing to meet their supervisory standards. The FSA investigation found that the directors had been relying too heavily on external consultants for advice on how to run their business.
It is equally unsurprising then that HM Revenue & Customs (HMRC) have also announced that they take the same view to the FSA in relation to businesses meeting their obligations under the Money Laundering Regulations.
HMRC also state that they have no objections to businesses getting advice from external consultants regarding their obligations under the Regulations, as long as the responsibility for complying with the Regulations remains on the business rather than any consultant.
What does come as a surprise is that some consultants, who should frankly understand the Regulations better, have recently offered their services to act as the Nominated Officer for a business. HMRC has no formally announced that it does not consider that a consultant outside the business can be appointed Nominated Officer for any of the businesses HMRC supervise under the Regulations.
08.04.10 Crime proceeds spent on Wigan allotment project
Posted by: BTC in General News & Cases on April 8th, 2010
Thousands of pounds confiscated from criminals have been donated to an allotment project in Greater Manchester.
Norley Hall allotments in Wigan has been given £5,000, which was raised through the police’s payback scheme.
Under the scheme, money raised by criminals is given to the community.
The allotment was set up to encourage youngsters who had been involved in anti-social and criminal behaviour to give something back to their community.
The young people will use the area to grow flowers and plants which will be given to local victims of crime, police said.
Insp Phil James, of Greater Manchester Police, said the scheme, which is in its first year, had led to a reduction in anti-social behaviour and criminal damage in the area.
22.01.10 Fraud losses cost the UK £30bn a year
Posted by: BTC in General Information & FAQ's, General News & Cases on January 22nd, 2010
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Fraud – including scams, online theft, insurance cheats and tax fraud – costs the UK £30bn a year, according to an official estimate.
The National Fraud Authority (NFA) has calculated the figure for the first time and said it equated to £621 per adult in the UK. Some 58% of fraud was in the public sector, at a cost of £17bn, it added.
It said the losses were paid for through taxes and rising prices of products and services. The highest sector was losses from tax fraud – estimated at £15.2bn – although this was only 3% of tax liabilities, the NFA said.
According to the NFA, which is part of the UK Attorney General’s Office, some 31% of losses came in the private sector, with the financial services sector suffering the biggest hit.
It lost an estimated £3.8bn, including £1bn in mortgage fraud. This has prompted the City watchdog, the Financial Services Authority, to take a tougher stance against the crime, with a number of brokers having been fined and banned from the industry.
Another £2bn was lost to insurance fraud, and the remainder came from fraudsters targeting online banking, cheques, and plastic cards.
The consumer goods industry lost an estimated £1.3bn a year. Manufacturing suffered losses of £1bn a year, and technology, media and telecommunications lost £948m.
Consumers have also been tricked out of an estimated £3.5bn a year in share, lottery and loan scams. Some 12% of all fraud was suffered by individual consumers.
“Although the figure appears on the face of it far greater than the previous estimate, we know this is because we have included many additional figures that other studies have not,” said NFA chief executive Bernard Herdan.
“With this vital information we can develop clearer priorities to prevent, detect and deter fraudsters. We will use the data to help identify those areas of fraud that cause the most harm to the UK economy”.
Visit the BTC website for compliance help and support for firms in the regulated sector
15.01.10 Hunslet Man Arrested for Money Laundering
Posted by: BTC in General News & Cases on January 15th, 2010
A 35-year-old Hunslet man has been arrested on suspicion of money laundering as part of an investigation involving the City and Holbeck Proceeds of Crime Team and the Holbeck Neighbourhood Policing Team (NPT).
Police officers and police community support officers (PCSOs) from the NPT entered the unemployed man’s home yesterday afternoon using a warrant obtained under the Theft Act, as part of an investigation into handling stolen goods.
Inside the property officers found a large number of high-quality electrical goods including a plasma television, stereo system, laptops and computer equipment, and kitchen items, worth thousands of pounds. The man was also found to have £5,200 in cash in his coat pocket.
The man was able to produce receipts for the items, but these were all paid for in cash and he is believed to have been unemployed for a number of years. He was arrested on suspicion of money laundering, and after being interviewed he was bailed pending further enquiries.
The cash has been seized by the Proceeds of Crime Team, who will now carry out an investigation into the man’s lifestyle to determine how he has acquired his assets without a declared income.
If it can be proved that these assets have been acquired through criminality, the Team can then apply to confiscate them under the Proceeds of Crime Act 2002.
Why Should They?
Detective Sergeant Tom Walsh of the City and Holbeck Proceeds of Crime Team said: “Anyone who has expensive possessions but no obvious income must raise eyebrows among people who earn honest livings in our communities, and I would appeal to these residents to contact the Why Should They? campaign if they have any suspicions about how these people have acquired their assets.”
The warrant was carried out following information from the community, and Inspector Damien Miller of the Holbeck NPT said: “We’re keen to show local residents that we’re listening and will act on the information they give us. Warrants like this are a great example and I would encourage people to continue contacting us about the issues they want us to tackle.”
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16.09.09 Four arrested connection with a £9m mortgage fraud
Posted by: BTC in General News & Cases on September 16th, 2009
Four men have been arrested by the City of London Police force in connection with a £9m mortgage fraud against a major insurance company.
40 police officers have been involved in the operation in the South-East of England which has led to a number of co-ordinated searches on four houses, the business unit of a gaming company and a solicitor’s office. Police officers have seized documents from the sites searched. As a result of the raids police have arrested four men on charges of conspiracy to defraud.
Steve Head, detective chief superintendent at the City of London Police, says the move represents a significant step forward in what has been a complex investigation.
He says: “The size of the police operation was evidence of the scale of this suspected fraud. It is not just the lenders that are being hit by the fraudsters. Individuals are losing millions and millions of pounds through a range of mortgage frauds, with much of this money being paid into the coffers of criminal networks.”
He adds: “We have a number of significant investigations ongoing and as lenders and borrowers continue to scrutinise their finances I anticipate many more cases being referred to us in the near future. I would ask anyone who has fallen victim to mortgage fraud to contact the City of London Police. The more we know the more difficult we can make it for those committing this highly damaging crime.”
The Solicitors Regulation Authority has backed the City of London Police’s crackdown on mortgage fraud.
A spokesperson says: “The SRA works closely with police and other law enforcement organisations to tackle mortgage fraud. Since the start of 2009 the SRA has stepped up its work in relation to mortgage fraud, both through advice and warnings to the profession, and by increasing its detection and investigation resources to prevent, deter and tackle fraud.”
Visit the BTC website for compliance help and support for firms in the regulated sector
14.09.09 HM Revenue and Customs officers arrested 21 people in raids in a multi million pound construction industry fraud.
Posted by: BTC in General News & Cases, HMRC News and Guidance on September 14th, 2009
The twenty one arrests, consisting of eighteen men and three women, were made covering areas as diverse as the West Midlands, Staffordshire, London and Greater Manchester. The suspects were arrested on suspicion of conspiracy to ‘cheat the public revenue’ and ‘money laundering’ offences amounting to over £6 m. They were questioned by HMRC criminal investigators at various UK police stations.
The plot centers on a complicated conspiracy through a version of ‘missing trader’ fraud which sees the creation of a contrived chain of companies, which claim to subcontract labour for the construction industry, with the sole intention of disappearing before paying the taxes due are payable under the ‘Construction Industry Scheme’ (CIS) to HMRC. These organised criminal gangs, in a bid to steal millions of pounds, pocket the money and hijack legitimate companies along the way.
This conspiracy exploits individuals working in the construction industry and it is believed thousands of construction site workers may have been robbed of the tax and national insurance contributions they have had deducted under the CIS scheme over the last six years.
Adrian Farley, Assistant Director of Criminal Investigation for HMRC, said: “Today’s arrests are the result of strenuous efforts by our teams of dedicated officers to disrupt the sophisticated scams of organised crime gangs behind money laundering activities. This conspiracy by a number of contractors is believed to have resulted in the theft of over £6 million from the public purse, depriving vital public services of much needed investment. We are committed to bringing them to justice and to deprive them of the proceeds of their crime.”
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10.09.09 Serious Fraud Office (SFO) launches investigation into JJB and Sports Direct
Posted by: BTC in General News & Cases on September 10th, 2009
Following an OFT investigation into the sports retail market, it has been announced that the Serious Fraud Office (SFO) has now begun its own investigations into JJB Sports and Sports Direct.
JJB Sports revealed that it had stated its concerns about possible cartel activity in its market to the OFT which in turn has been granted immunity from any financial penalty in the event that competition rules have been broken.
The investigation follows an approach made by JJB to the OFT on January 30, following the suspension of its then chief executive Chris Ronnie. JJB asked at that time;
“for immunity pursuant to the OFT’s leniency programme in relation to a suspected agreement or concerted practice to dampen competition in the sports retail market in the period from 8 June 2007 to 25 March 2009, being the period in which the former chief executive, Mr Christopher Ronnie, was employed by the company.”
JJB did not name any other individuals or companies in its statement today. However, there was frequent speculation during Ronnie’s tenure about the nature of his relationship with Sports Direct and its founder Mike Ashley for whom Ronnie formerly worked.
OFT officers visited JJB at its Wigan head office this morning. It may be “some years” before the OFT investigation is complete. The retailer said in a released statement
“that in the event that any subsequent immunity agreement, is withdrawn as a result of JJB’s non-compliance with the conditions or as a result of JJB’s evidence being materially undermined in particular circumstances, and an infringement decision is issued by the OFT, JJB “may be liable for a fine from the OFT of up to a maximum amount of 10% of the Group’s turnover”.
Visit the BTC website for compliance help and support for firms in the regulated sector
04.08.09 FSA bans Cornwall broker for fraud
Posted by: BTC in General News & Cases, HMRC News and Guidance, Professional Bodies on August 4th, 2009
The FSA has banned Cornwall mortgage broker Stephen Sanders for submitting at least three mortgage applications on behalf of customers which he knew contained false and misleading income information.
Sanders withheld information from a prospective employer relating to an investigation into him by his former employer which resulted in his suspension. He also failed to disclose to the FSA that he was the subject of an ongoing disciplinary investigation into his conduct by his former employer when applying to the FSA to perform a controlled function.
For the first customer mortgage application, the income as stated in the mortgage application, was substantively higher that that declared by the customer to HM Revenue & Customs (HMRC). In the second mortgage application the income stated in a mortgage application included some of the income of the customer’s parents which was falsely described as his own. And in the third case there were discrepancies in the application about the income sources of the two customers who were making a joint application.
Margaret Cole, director of enforcement at the FSA, said: “Sanders submitted mortgage applications which he knew to be false and this posed a serious risk to lenders and confidence in the financial system. Our work on mortgage fraud continues as a priority in our campaign against financial crime.”
She added: “We have banned more than 60 mortgage brokers over the last three years and we will continue to ban such people to reinforce the message that knowingly giving false and misleading information to prospective lenders is dishonest. Approved persons must also be open and honest with the FSA and prospective employers about their circumstances. Behaviour which shows lack of honesty and integrity will result in a ban.”
Visit the BTC website for compliance help and support for firms in the regulated sector
03.08.09 Identity fraud soars in 2009
Posted by: BTC in General Information & FAQ's, General News & Cases on August 3rd, 2009
New Cifas stats paint bleak picture for the UK’s financial institutions and card companies.
Identity fraud surged by nearly three quarters in the first half of the year, driven by continued malicious online activity, and the economic slowdown, according to new figures from UK fraud prevention service Cifas.
The organisation was set up to facilitate the sharing of information on identified fraud between its members – which include banks, card companies and insurance firms – in an attempt to prevent further rises in all types of fraud, including online.
It said identity fraud, which includes victims of impersonation as well as the creation of fictitious identities by fraudsters, rose 74 per cent in the first six months of 2009 to over 100,000 cases.
Facility take over fraud – where the fraudster gains access to a user’s account and siphons off funds – rose 40 per cent during the period with over 11,000 cases registered.
There was some good for fraud departments however, with Cifas reporting an 11 per cent year-on-year increase in the financial losses avoided through the fraud data sharing of its members.
“The rise in the numbers of victims, and these very specific types of fraud demonstrate that fraudsters have no regard for economic, social and personal fragility,” argued Cifas chief exeutive Peter Hurst.
“While we all look for solutions to the hardships imposed by the current climate, however, these figures focus attention sharply on what responsible businesses and public sector organisations can achieve through sharing data on proven frauds to reduce losses and ease the burden of the recession upon us all. ”
Although not broken out in the survey, it’s believed that much fraudulent activity committed today is card not present (CNP), including online, fraud.
Visit the BTC website for compliance help and support for firms in the regulated sector
31.07.09 Serious organised crime review published
Posted by: BTC in General News & Cases, SOCA - Latest News on July 31st, 2009
The Government’s new strategy for tackling serious organised crime, entitled Extending Our Reach: A Comprehensive Approach to Tackling Serious Organised Crime, has been published.
The strategy endorses many of SOCA’s current ways of working, including by seeking to cement a collaborative approach and to embrace wide-ranging tactics.
The strategy’s four main aims are to:
- ensure that all organised criminals are within our reach, using non-traditional techniques to create an improved intelligence picture and supporting the principle of lifetime management;
- use whatever tools have maximum impact, prosecuting when possible but also going further into using non-criminal proceedings, including to recover finances and assets;
- enable all of Government to play its part, including by strengthening the criminal justice system approach and using the powers of agencies outside law enforcement to combat organised crime together;
- maximise collective efforts overseas, and to work closely with the private sector and with the public.
Speaking at the launch of the strategy, SOCA Executive Director David Bolt said:
“Organised crime is constantly evolving, as is law enforcement, and five years after the publication of ‘One Step Ahead’ this is a timely and appropriate response. Our intelligence on organised crime has improved significantly, and we have new powers, the effects of which are starting to be felt. At the same time there are new opportunities for criminals, and law enforcement has to keep working to stay ahead”.
The Review is a strong endorsement for the approaches SOCA has been pioneering, and looks to extend those approaches more widely. For example, every SOCA investigation involves a financial investigation; we are making use of Serious Crime Prevention Orders and Financial Reporting Orders; we work with non-law enforcement partners and the private sector; we work with prosecutors to ensure that the best line is taken in every case; and we are exploring the potential for greater data sharing and matching. We know that other countries look to the UK as leading the field in many of these areas.
Through SOCA’s operational efforts in its first three years we have been able to identify over 5,000 individuals involved in organised crime at a level that makes them of interest to us. The people we are concerned about are mostly lifetime criminals. Some are overseas, some are in prison, but once they are in our sights we do not let go. We recognise that it is not a matter of dealing them a single blow and that we have to keep up our attack. As a result, it is likely that the number of people on our radar will continue to grow.
The main principles of the new strategy are sensible: all organised criminals within reach; all approaches considered; all of government playing its part; all partners at home and overseas engaged. We particularly welcome the specific remit the Review gives to other government departments and agencies: this is not just for the Home Office and law enforcement to deliver. Collaboration is the key. This is something SOCA has always promoted – the legislation that set us up designed us to operate on that basis.
Visit the BTC website for compliance help and support for firms in the regulated sector.
