HISTORIC PRESS RELEASE : Taking the profit out of crime [June 1998]
The press release issued by HM Treasury on 1 June 1998.
A national confiscation agency, which would seize cash and property obtained from the proceeds of crime, is one of the ideas the Government is considering to take the profit out of crime.
Speaking today to Commonwealth Finance and Law officials in London, Economic Secretary Helen Liddell outlined the UK response to the threat of money laundering.
“Money laundering is a threat to our democracies and our people. The risk that dirty money may destabilise our economies and corrupt our financial and legal institutions is apparent to all. And unless we can successfully tackle the proceeds of crime, we are not going to be effective in combatting the criminals themselves.
“The anti-money laundering systems in place in the UK have, on the whole, been successful, but there is room for improvement. Firstly, the Financial Services Authority, our new single regulator, will take a pro-active role in regulating compliance with money laundering requirements. This will be underpinned by a high level objective in primary legislation obliging the FSA to monitor, detect and prevent financial crime.
“The FSA will have the power to make rules in relation to money laundering and bring criminal prosecutions for breaches of the UK’s money laundering regulations that are applicable to internal systems and training.
“Secondly, we intend to introduce a system of civil penalties for behaviour which, though failing short of criminal, nevertheless damages, or has the potential to damage, financial markets.
“Finally, our approach to asset confiscation has not been as successful as we had hoped. We are actively considering the idea of a national confiscation agency, that would have the remit to confiscate not only cash but also all property that might be derived from the proceeds of crime. These views are still at a tentative stage, but the Government is determined to do all it can to take the profit out of crime.”
