The bank industry group, UK Finance recently announced that fraud cost UK residents £1.2 billion in 2022. The scale of this loss, together with other forms of financial crime means that a complex web of UK enforcement agencies and other statutory bodies are working together to safeguard investors from financial crime and prosecute investment fraud cases.
UK enforcement agencies dealing with financial crime:
There are a number of UK enforcement agencies tasked with tackling financial crime. The five Enforcement Authorities are as follows:
- the National Crime Agency
- HM Revenue and Customs
- the Financial Conduct Authority
- the Serious Fraud Office
- the Crown Prosecution Service
In addition, to the official Enforcement Authorities there are a number of other operational units and statutory bodies operating within these organisations and these include the following UK enforcement agencies:
- National Economic Crime Centre
- The UK Financial Intelligence Unit
- City of London Police
- National Fraud Intelligence Bureau
- Action Fraud
National Crime Agency
The National Crime Agency (NCA) was established in October 2013 and replaced the Serious Organised Crime Agency.
The NCA has been tasked with cutting serious and organised crime in the UK by targeting and pursuing those criminals who pose the greatest risk.
Their remit extends to criminal activities ranging from illegal fire arms to kidnap and extortion and includes fraud, money laundering & illicit finance.
A number of operational units have been established within the NCA to assist in the fight against financial crime including the National Economic Crime Centre and the UK Financial Intelligence Unit.
HM Revenue and Customs
HM Revenue and Customs (HMRC) was established by an Act of Parliament in 2005 and replaced the Inland Revenue and Customs and Excise.
HMRC is synonymous with collecting taxes and overseeing the administration of the UK’s tax regime. In addition to their collection and compliance activities, HMRC is also an Enforcement Authority with responsibility for prosecuting tax evasion, systematic tax fraud and money laundering involving advisers acting in their professional capacity (accountants, solicitors).
Financial Conduct Authority
The Financial Conduct Authority (FCA) was established in April 2013 and is an independent public body funded entirely from levies paid by the firms they regulate. They are accountable to the Treasury (which is responsible for the UK’s financial system) and to Parliament.
The FCA is responsible for the conduct supervision of all regulated financial services firms operating in the UK and also acts as the prudential regulator for those firms not supervised by the Prudential Regulation Authority (PRA).
The FCA has three operational objectives
(i) to secure an appropriate degree of protection for consumers;
(ii) to protect and enhance the integrity of the UK financial system; and
(iii) to promote effective competition in the interests of consumers.
The FCA has the power to investigate and take disciplinary action against financial services firms where there have been breaches of the regulations.
This includes the right to impose penalties, fines or other sanctions on those firms and where there is evidence of criminal misconduct, they have the power to commence criminal proceedings.
Serious Fraud Office
The Serious Fraud Office (SFO) was established in 1988 under the Criminal Justice Act of 1987 and is overseen by the Attorney General’s office. Its responsibilities include investigating and prosecuting a small number of large economic crime cases involving serious or complex fraud, bribery and corruption.
The complexity of the cases taken on means that investigators and prosecuting lawyers need to work together from the outset to ensure a greater probability of achieving a successful outcome. This approach is an exception to normal practice and is known as the Roskill model.
In addition, the SFO also pursue convicted criminals for the financial gain they have made from their crimes (under the Proceeds of Crime Act) and to assist overseas jurisdictions (for example, the US Department of Justice) with their investigations into serious and complex fraud, bribery and corruption cases.
The challenges faced from serious and organised crime means that the SFO works with a significant number of other UK law enforcement agencies including the National Crime Agency, The City of London Police, HM Revenue & Customs and the Financial Conduct Authority.
It also liaises with UK police forces and Regional Organised Crime Units, Regional Asset Recovery Teams and Regional Fraud Teams.
The SFO receives information on possible criminal activity from a variety of sources, including whistle-blowers, victims, other law enforcement agencies, the media and corporations (“self-reports”).
To report serious fraud, suspected bribery or corruption, please contact the SFO.
The Crown Prosecution Service
The Crown Prosecution Service (CPS) is responsible for prosecuting crime in England & Wales. In Scotland it is the Crown Office and Procurator Fiscal Service and in Northern Ireland, the Public Prosecution Service.
The CPS is independent of the police and government and its role is to make decisions around which cases should be prosecuted; determining what charges should be brought; preparing cases and presenting them at court.
National Economic Crime Centre
The National Economic Crime Centre (NECC) was set up as a unit within the Economic Crime Command of the NCA in October 2018. It is considered part of the UK Government’s anti-corruption initiative to fight white-collar crime and to tackle the City of London’s increasing reputation as a haven for illicit money.
The NECC’s primary role is to co-ordinate and harness the intelligence and capabilities from other law enforcement agencies including the Serious Fraud Office, the Financial Conduct Authority, the City of London Police, the Crown Prosecution Service and HMRC.
It will also seek to utilise new legislation under the Criminal Finances Act to issue Unexplained Wealth Orders and Account Freezing Orders.
UK Financial Intelligence Unit
The UK Financial Intelligence Unit (UKFIU) is an operational division within the NCA. It was set up to receive, analyse and disseminate financial intelligence gathered from Suspicious Activity Reports (SARS).
Its database provides law enforcement agencies access to millions of pieces of financial intelligence which enables those agencies identify and prosecute money launderers and financial criminals.
City of London Police
The City of London Police is the police force responsible for the City of London which is primarily a business and financial district known as the Square Mile.
One of its many responsibilities is to take the lead on issues of economic or financial crime in the UK through the City of London Police Economic Crime Directorate and to work with other Agencies to prevent and investigate fraud at all levels.
If you believe you have been the victim of fraud (to include investment fraud, for example), then it should be reported to Action Fraud, which is a unit within the City of London Police.
National Fraud Intelligence Bureau
The National Fraud Intelligence Bureau (NFIB) is a unit within the City of London Police and works alongside Action Fraud and other external parties to gather intelligence and knowledge of Organised Crime Groups and to identify emerging crime types.
A substantial part of their remit is to assess and analyse reports received from Action Fraud and ensure these reports are allocated to the correct local police force or law enforcement agency for further investigation.
The NFIB also has the authority to take down bank accounts, websites and phone numbers which are used by fraudsters.
Action Fraud
Action Fraud is the UK’s national reporting centre for fraud and cybercrime and is a service provided by the City of London Police working together with the National Fraud Intelligence Bureau.
The service is aimed at individuals, corporations and financial institutions who believe they have been the victim of fraud or a cybercrime. The types of fraud can range from dating scams, mortgage fraud to investment scams. A comprehensive list is available on the Action Fraud website.
Action Fraud provide a central point of contact for information about fraud and financially motivated internet crime. Action Fraud reports are passed to the National Fraud Intelligence Bureau (NFIB) who assess, analyse and send them to police forces for investigation.
If you believe you have been the victim of fraud or cybercrime then please contact Action Fraud.
UK financial regulators
In addition to the many UK enforcement agencies, there are also a number of financial regulators with responsibility for the supervision of financial services in the UK. To learn more about these regulators, please click here.
