ASSET RECOVERY
WORKING GROUP/PAYBACK News Release (No 36) issued by The Government
News Network on 31 July 2007
GOVERNMENT NEWS
On 25 July 2007 HM Treasury published toughened regulations to
fight Money Laundering and Terrorist Financing. They will come
into effect on the 15 December 2007 and are designed to ensure
that the UK response to money laundering at home and abroad is
effective and proportionate. Kitty Ussher, Economic Secretary to
the Treasury said: "These Regulations will strengthen further
the UK's defences against money laundering and terrorist
finance. In line with the Government's financial crime
strategy these Regulations introduce tough and targeted new
measures where the risks are greatest and at the same time ensure
that businesses and consumers in low risk situations face fewer
burdens than previously."
These Regulations are the result of extensive consultation with
both the private sector and law enforcement, including two written
consultation documents, and carefully balance the views of
different parties.
The published Money Laundering Regulations can be found at:
http://www.hm-treasury.gov.uk/documents/financial_services/money/fin_crime_policy.cfm
NEWS FROM THE LAW ENFORCEMENT COMMUNITY
The Revenue and Customs Prosecutions Office (RCPO) continued to
play a leading role in the fight against organised crime in
2006-07, prosecuting 32 cases of missing trader fraud. The fraud,
also known as MTIC or 'carousel' fraud, involves a
sophisticated attack by organised crime groups on the UK revenue.
Each year, those involved in these frauds attempt to steal several
billion pounds from the Treasury and RCPO has brought a number of
successful prosecutions against those involved.
77 defendants were convicted or pleaded guilty last year and
substantial prison sentences were imposed. In one instance, the
organiser of a multi-million pound fraud known as Operation
Maypole - received a sentence of 15 years' imprisonment, the
longest single sentence to date for this offence. RCPO is
continuing to prosecute these frauds and currently has a
significant number of cases either before the courts or where
prosecutors are involved in giving early advice pre-charge. These
figures were published on 17 July 2007 in the RCPO Annual Report
2006/07. David Green QC, Director of RCPO said: "RCPO's
Missing Trader Intra Community Fraud (MTIC) prosecutions comprise
the most challenging area of our casework. We will build on our
successes in this area and strive to maximise the advantages of
early prosecutorial involvement."
On 17 July 2007 at Manchester Crown Court a confiscation order
for £5,600,483 was made against a VAT fraudster who had previously
traded in mobile phones. In addition to a significant amount of
property already under restraint, the judge ruled that cash
withdrawals amounting to nearly £2 million which remain untraced
and unaccounted for, must still form part of this criminal's
realisable amount. He has twelve months to pay or faces an
additional seven years added to his prison sentence. He was
originally sentenced to seven years imprisonment in December 2006
for VAT and money laundering offences. The HM Revenue &
Customs (HMRC) investigation involved enquiries across several EU
countries to establish the true nature of this criminal operation.
It became clear that the individual had purchased the mobile
phones VAT free and then sold them on but reclaimed VAT to which
he was not entitled. The confiscation investigation identified
numerous properties and illicit business transactions. Peter
Hollier, HMRC Assistant Chief Investigation Officer said:
"Tackling this type of crime is HMRC's top fraud
priority. This case is a further example of HMRC's
determination to bring to justice the criminals involved in this
type of fraud and also vigorously pursue the recovery of their
illicitly derived assets with the assistance of our colleagues in
RCPO. This confiscation order brings this case to a successful
conclusion and shows how determined we are to ensure that crime
doesn't pay."
On 16 July 2007 at Croydon Crown Court ten people were sentenced
following an investigation which focused on 170 bank accounts that
had been opened across various high street banks and resulted in
losses of nearly £3 million to the banking industry.
The City of London Police Economic Crime Department launched the
investigation in December 2005 after reports of suspicious
activity on a number of bank accounts held at several high street
banks in West London. Officers uncovered an organised gang of
individuals, responsible for the accounts, living in the Ealing
and Greenford area all of whom were either related or close
friends. One of those involved, a former employee of a major high
street bank - accepted payments from the group and used false
documents to open a total of 20 business and personal accounts on
their behalf. The gang would then move money between the
accounts, running up overdrafts and taking out personal loans. In
February 2006 130 police officers carried out 30 searches at
private addresses in West London, the South East and Bradford,
resulting in 17 arrests and the seizure of some high value goods,
including televisions. At one of the addresses officers also
seized paperwork concerning a lock-up in West London, which when
searched contained false identities and £26,000 cash. Seven
individuals were charged with conspiracy to defraud the UK
Clearing Banks and three others were charged with money
laundering. All pleaded guilty and a confiscation hearing is
scheduled for early 2008. Investigating officer, Detective
Inspector Martin Peters, said: "With the help of all the high
street banks it has been possible to bring this gang to justice
and send out a clear message that we will not tolerate any form of
economic crime." City of London Police worked closely with
the newly formed Fraud Prosecution Service (FPS), who provided
advice from the earliest stage of the investigation.
MEDIA COVERAGE
NewsWales online reported that a man who lived a lavish
lifestyle, pleaded guilty to arranging to launder the proceeds of
criminal conduct to the value of £750,000 which was destined for
the purchase of land in Flintshire. His assets included a boat in
Conwy Marina, two diamond watches valued at £42,000 and £4,500
American travellers cheques. He was sentenced to ten months in
prison at Mold Crown Court.
FORTHCOMING CONFERENCES AND EVENTS
The 25th Cambridge International Symposium on Economic Crime will
take place at Jesus College, Cambridge from 2-9 September 2007.
For further information visit http://www.crimesymposium.org
The British Bankers' Association 5th Annual Financial Crime
Conference will take place on 27 November 2007 at Hotel Russell,
Russell Square, London. For further information visit http://www.bba.org.uk
The inaugural conference of the London Fraud Forum (LFF) will
take place on 4th October 2007 at Barbican Centre, London .The LFF
is the latest of the fraud forums to be launched, following the
very successful model of those in the North East, the North West,
and the South West. The delegate fee for the conference is £100 +
VAT, which includes one year's membership of the
organisation. Further information on the event is available on
the website, at http://www.conference-network.co.uk
or by calling (+44) (0) 20 8847 4074, emailing judith@conference-network.co.uk.
Tackling Organised Crime in Partnership 2007 will be held on the
30-31 October, London.
This Congress, now in its 5th year, has an established reputation
amongst senior decision-makers, practitioners and strategists as a
forum that provides thought-leadership and practical methodologies
that can be used by law enforcement, government, and business to
combat the growing spectrum of challenges from organised crime.
Key themes will include asset recovery, the proceeds of crime act,
financial investigation and economic crime. Industry sectors
typically include; banking and finance, government, information
and communications technology, insurance, law enforcement, legal
services, manufacturing, media and entertainment, military and
defence, pharmaceuticals, retail, transport and travel, and
utilities. For more information on any registration queries please
call +44 (0)20 7430 2352 or email: lucas.allen@akjassociates.com
or visit http://www.tocpartnership.org
FEEDBACK
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