Jul 14 2009 Martin Coyle
The UK government has said that it will lobby to reform the Financial Action Task Force as part of its new approach to tackling organised crime, which it estimates is costing the country £30bn a year. The Home Office paper sets out a new strategy designed to create a more hostile environment for organised criminals, which would include an increased focus on seizing their assets and shutting down their businesses.
The Home Office said that it would seek to strengthen FATF's capabilities as a counter-money laundering body. The government said that it would also introduce monitoring to gauge its effectiveness and push for a more "activist" approach against problematic territories. A Home Office spokesman declined to elaborate on this point yesterday.
The paper said that although the UK's approach to combating serious and organised crime was one of the most sophisticated in the world, there was recognition that criminals were using new means to target people. It added that there was an increasing link between organised crime and weak or falling states where criminals could operate without detection. The government said that it would target the businesses of organised criminals which run outwardly legitimate businesses to facilitate their criminal activities and launder the proceeds of their crimes. Closing down these businesses would have a great impact on their ability to operate, the report suggested.
"According to [the Association of Chief Police Officers] over a quarter of known organised criminal groups are linked to companies, and 20 per cent of those are thought to be used as a front for illegal activity such as money laundering or drug dealing. The types of businesses most commonly linked to organised criminal groups include licensed premises, car dealers, solariums, nail bars and massage parlours," the report said.
The plan will see the rollout of police-led regional asset recovery teams around the country, making a total of nine teams. The government said that tax investigations would play a significant role in the strategy and would be used to target offenders that had proved difficult to prosecute in the past. Evidence of deliberate tax evasion would lead to cases, the Home Office said. Tax investigations would also be used to provide a snapshot of criminal activity, while prosecutions for money laundering would also be sought. There will also be a reversal of the burden of proof in civil recovery cases, which could make it easier to seize ill-gotten assets. The paper said that the UK would maximise its efforts overseas by linking up with other agencies to tackle organised crime abroad. It would also seek to work closer with the private sector to stamp out e-crime, such as phishing.
Alan Johnson, home secretary, said: "This strategy goes further than ever before in taking the fight to organised criminals — from the hard-to-reach criminal bosses to the lower-level players that are harming our communities."
Jon Murphy, ACPO national coordinator serious organised crime, welcomed the report. "British organised crime gangs are fluid, flexible and opportunistic. There are no set ranks, rules or structures which you can see with international crime gangs. At the very top level, the number of 'Mr Bigs' is relatively small, and those individuals and groups associated with the most harm are subject to the highest level of enforcement and intervention," he said.
