An Introduction to Economic Crime Regulations

Mar 6, 2023 | Thought Leadership

The terms “economic crime” and “fraud” cover a broad variety of illegal activities that entail stealing money or other resources or manipulating financial institutions in order to benefit oneself. These actions might include (but not limited to) identity theft, cybercrime and money laundering. Businesses as well as individuals in the UK are very concerned about economic crime and fraud, so the government has put in place a number of laws and regulations to prevent these crimes.

The Proceeds of Crime Act (POCA), the Fraud Act (Act of 2006), the Money Laundering Regulations (Act of 2017) and the Criminal Finances Act (Act of 2017) are among the significant laws and regulations that make up the UK’s framework for combating economic crime and fraud.

The government has the right to take and confiscate the proceeds of crime according to a law known as the Proceeds of Crime Act of 2002 (POCA). This includes cash and other possessions obtained through unlawful means. Additionally established under POCA, the National Crime Agency (NCA) and the Assets Recovery Agency are in charge of conducting inquiries and locating the proceeds of crime.

The Fraud Act of 2006 makes it illegal to conduct fraud through false representation, withholding facts, or positional abuse. The legislation also addresses the ownership of items intended for use in fraud and makes it illegal to own, create, modify, supply, or offer to supply any item with the intent to use it in fraud.

The Money Laundering Regulations 2017 is the legislation that implements the 4th EU Money Laundering Directive. It requires organisations operating in the UK to put in place systems and controls to prevent, detect and report money laundering. This includes customer due diligence, risk assessment, and internal controls.

The Criminal Finances Act 2017 is a law that makes it easier for the government to freeze and confiscate the proceeds of crime, and it also includes a new corporate offence of failing to prevent the facilitation of tax evasion.

The UK government has its own economic crime and fraud strategy, which is regularly updated to take into account the latest threats and trends. The strategy includes a number of initiatives aimed at improving the detection and prevention of economic crime and fraud, such as the Joint Money Laundering Intelligence Taskforce (JMLIT), which is a partnership between law enforcement agencies, regulatory bodies, and the private sector to share intelligence and information about money laundering.

Additionally, the UK government has also established the National Economic Crime Centre (NECC), which is a part of the National Crime Agency (NCA). The NECC provides guidance and support to organisations on how to protect themselves from economic crime and fraud, and also works with other organisations to identify and respond to economic crime and fraud incidents.

In summary, the government has put in place several rules and regulations to combat economic crime and fraud. The National Crime Agency (NCA) and the National Economic Crime Centre (NECC) oversee the investigation and the recovery of the proceeds of crime as well as advising and assisting businesses in adhering to these laws. The UK government also has a plan for combating economic crime and fraud, which includes programmes like the Joint Money Laundering Intelligence Taskforce (JMLIT) and the National Economic Crime Centre (NECC).

If you have found the above interesting and helpful or feel you/your team would benefit from more information, additional training or a refresher course about Economic crime, please contact us at Zing365. As a specialist training provider to the insurance, corporate and financial services sectors we are proud to support over 400 clients and 20,000 learners each year and are here to help you with all your training and development needs.

Contact us today
to find out more

Get in touch with a member of our team by using the details below or filling in the form and we will contact you.

T   0117 959 4135
A   Redcliff Quay, 120 Redcliff Street, Bristol, BS1 6HU
APCC Affiliate
ilm approved

Get in touch