Following the recent Budget announcement, Michael Harris, Director Financial Crime Compliance at LexisNexis® Risk Solutions, shares his thoughts on the introduction of the Economic Crime Levy (section 2.4), which will be paid by firms subject to the Money Laundering Regulations to help fund new government action to tackle money laundering and ensure delivery of the reforms committed to in the Economic Crime Plan.
Michael Harris, Director Financial Crime Compliance at LexisNexis® Risk Solutions, comments on the Government’s announcement that it will introduce the Economic Crime Levy on banks to help tackle money laundering:
“Financial crime is ever evolving, which means it’s vital that organisations are continuously investing in the latest technologies to trace illicit fund flows and keep pace with bad actors. The Financial Intelligence Unit and National Crime Agency, however, have been left behind when it comes to investing in these areas.
The Economic Crime Levy is very welcome as it should, in theory, restore this balance, giving them the much-needed additional resources to invest in the technologies and people required to efficiently and intelligently cross check data and analyse suspicious activity reports in depth. To better detect and mitigate financial crime, it’s vital that the investment is made in these areas, and this doesn’t become yet another initiative that doesn’t deliver.
However, responsibility for fighting financial crime doesn’t lie solely with financial institutions. The problem spans all industries, therefore to make a true impact we need cross industry collaboration, from real estate to retailers, that is driven by government. In doing so we will be able to see the true scale of the problem and take the right steps to tackle it.”
