§ Mr. OatenTo ask the Chancellor of the Exchequer how many(a) suspicious transaction reports and (b) suspicious activity reports relating to financial matters have been made in each of the last five years; and what proportion of each resulted in (i) prosecution and (ii) conviction in each year. [160200]
§ Caroline FlintI have been asked to reply.
Under the Proceeds of Crime Act 2002 (PoCA) individuals and businesses have various obligations to make disclosures to the National Criminal Intelligence Service (NCIS) if they have grounds to believe that money laundering is taking place. These disclosure reports are usually now referred to as "Suspicious Activity Reports", but until recently were known as "Suspicious Transaction Reports".
The number of disclosures made to NCIS in each of the last five years was as follows:
Number 1999 15,115 2000 18,447 2001 29,976 2002 56,023 2003 94,708 The information provided by disclosures is used by law enforcement agencies in a range of ways to detect crime and trace the proceeds of crime. For example, such information may contribute to an ongoing
170WLetter from John Pullinger to Mr. Jeff Ennis, dated 16 March 2004:
The National Statistician has been asked to reply to your question concerning the change in size of parliamentary electorate for each South Yorkshire parliamentary constituency between 2001 and 2003. I am replying in his absence. (161336)Attached is a table showing the total and percentage change of the number of registered parliamentary electors in South Yorkshire over the period 1 December 2001 to 1 December 2003.It should be noted that these figures represent the number of registered electors. In many cases, larger decreases may be due to 'cleaning' the registers to ensure that they accurately reflect the electorate, rather than 'real' decreases in the number of electors.investigation or be the trigger for a new one, or may be held on the relevant intelligence databases for use in future cases.
Given the variety of ways in which this information is used, it is not possible to link particular disclosures with particular prosecutions and convictions. But the reporting system is a key element of the UK's defences against money laundering. In their 2003 review for the Government of the system, the consultants KPMG examined a sample of disclosures. Of those whose impact could be specifically identified, one-third were found to have contributed to a positive law enforcement outcome such as prosecution, confiscation of criminal proceeds or cash seizure. More recent analysis by NCIS in relation to the impact of one category of disclosures (those where an institution has sought consent to proceed with a transaction) suggests that in the last year £25 million of assets have been seized, restrained or returned to the victim.
§ Mr. OatenTo ask the Chancellor of the Exchequer what recent discussions and representations he has had on the(a) effectiveness and (b) benefit of (i) suspicious transaction and (ii) suspicious activity reports; and what plans he has to change the reporting system. [160201]
§ Caroline FlintI have been asked to reply.
Under the Proceeds of Crime Act 2002 individuals and businesses have various obligations to make disclosures to the National Criminal Intelligence Service (NCIS) if they have grounds to believe that money laundering is taking place. These disclosure reports 171W are usually now referred to as "Suspicious Activity Reports", but until recently were known as "Suspicious Transaction Reports".
The reporting system is a key element in the United Kingdom's defences against money laundering and an important source of intelligence on all types of acquisitive crime (drugs trafficking, theft, fraud, and all other types of crime committed for financial gain). It is crucial to ensure that the system is effective and that the costs it places on the private sector are proportionate. It was against this background that the Government commissioned the consultants KPMG to examine the reporting system and to make recommendations as to how it could be improved. The Home Office published KPMG's report on 8 July 2003, and set up a Taskforce to support the process of modernising and streamlining the reporting system, as recommended in the report. The Taskforce's membership is drawn from key interested parties in the public and private sectors and the Financial Services Authority.
A major programme to improve the reporting system has been under way in recent months, which has led to substantial improvements in the timeliness and quality of the information NCIS provide to law enforcement agencies. We have received a number of representations from private sector institutions about ways in which the reporting system should be improved. These have been taken into consideration as part of the reform programme.
The success of the reporting system relies heavily on the contribution of reporting institutions. To help build a healthy partnership and to benefit from the input of all those involved in the system we are in regular dialogue with these institutions.