In a significant stride towards combating economic crime on a global scale, the Financial Action Task Force (FATF), the world’s foremost Anti-Money Laundering standard-setting organization, has unveiled a set of new standards aimed at enhancing the seizure and confiscation of criminal proceeds. This momentous announcement, the result of a two-year collaborative project co-led by the United Kingdom, marks a pivotal moment in the ongoing fight against economic crime.
The newly reinforced standards have been adopted by over 200 countries worldwide and are poised to become a cornerstone in international efforts to thwart economic criminal activities. These standards specifically introduce the concept of non-conviction based confiscation, a vital tool in the arsenal of law enforcement agencies to disrupt illicit activities and strip criminals of their ill-gotten gains. Notably, the United Kingdom has been a pioneer in implementing non-conviction based confiscation, which is proven to be highly effective in complementing or substituting conventional criminal proceedings.
The need for robust and effective measures to deter and counter economic crime cannot be overstated. With these strengthened standards, authorities will have the necessary tools to disrupt and disincentivize criminals, making it significantly more challenging for them to enjoy the proceeds of their illicit activities.
The United Kingdom has played a pivotal role in driving the global effort to recover the proceeds of crime. Recent years have seen the expansion of domestic confiscation powers in the UK, resulting in a record-breaking recovery of nearly £340 million in the fiscal year 2022-2023. This impressive figure reflects a remarkable 75% increase compared to the £194 million recovered in 2017-2018. Importantly, £160.1 million of the total was secured through non-conviction based confiscation powers.
Treasury Lords Minister, Baroness Penn, underlined the significant impact of these new international requirements on the UK’s fight against economic crime. By enabling cross-border disruption of economic criminal activities, these standards play a vital role in safeguarding financial systems and protecting communities. Baroness Penn expressed the UK’s unwavering commitment to driving higher standards in the global recovery of the proceeds of crime, a mission that is both overdue and warmly welcomed.
Security Minister Tom Tugendhat echoed these sentiments, stressing that criminals should never be permitted to enjoy the fruits of their illegal activities. The seizure of their ill-gotten gains sends a powerful message that their actions will not be tolerated. Minister Tugendhat commended the FATF’s new standards as a significant step forward and an effective deterrent against criminal activities. He reaffirmed the UK’s dedication to collaborating with the international community to target criminals proactively, seize their illicit funds, and redirect them towards the betterment of society.
