On Monday 3rd
September I am attending the 30th Anniversary of the Cambridge International
Symposium on Economic Crime.
I have been
fortunate to have been associated with the Symposium for 29 years and I have
been invited to present many papers and
chair a number of breakout sessions.
The brainchild of a
brilliant Cambridge law Don, Dr Barry Rider, the Symposium has been the best possible
sounding board for international law enforcers and financial and economic crime
policy makers to meet in the delightful surroundings of Jesus College, Cambridge,
and to discuss issues of mutual concern.
I want to quote from
the invitation letter written by Dr Rider to explain the significance of this
important, indeed unique event.
"...The
annual Cambridge International Symposium on Economic Crime is not just another
conference!
It
would not be celebrating its thirtieth year if it were! Over the years, the
Cambridge Symposium has established itself as a unique vehicle for promoting,
at a truly international level, greater understanding of the real and practical
issues involved in preventing and controlling economic crime, corruption and
abuse, and thereby facilitating meaningful co-operation...It seeks to involve
speakers and panellists with practical knowledge and
experience from around the
world who can not only share their expertise, but also act as catalysts in
promoting awareness and discussion at all levels within the Symposium.
The
primary theme of the Conference addresses some of the myths and realities in
terms of risk and its management, of the consequences – both direct and
indirect, of the international financial crisis and the near collapse in
confidence as to the integrity of many of our financial institutions. At a time
when many agencies that have been criticized for failing to act sufficiently
robustly are being restructured or replaced, there are profound uncertainties
not only for those in the regulatory and enforcement sectors, but also for
those in the regulated communities.
We
are not, however, concerned only with the identification of such risks, but
also their management and containment. During the week we will address a host
of issues that threaten stability and integrity and in particular the insidious
threats presented by organized crime, fraud, corruption and money laundering...Consequently
the
programme is of very real relevance
not only to those involved in law enforcement and supervision, but all those
who are concerned to maintain integrity and protect business whether in the
public or private sector.
For
me, it is a matter of some considerable concern that Dr Rider has opened the
doors of Jesus College for 30 years, and the great and the good, as well as a
lot of rough-hewn and hardened cops have walked through to debate the
phenomenon of international economic crime.
When
we started, Financial Crime was not an issue for debate in the UK, there were
no financial regulations to speak of, the City was regulated by the City,
subject always to the dubious effectiveness of the Prevention of Fraud Act
1953, implemented largely by the ineffectual Department of Trade and Industry
(DTI).
The rest of the Fraud regime was largely investigated and prosecuted by
Police from the Fraud Squad. There were certain frauds in the VAT and Tax
sector which were investigated by Customs and Excise or the Inland Revenue, but
the vast majority of fraud prosecutions were brought by Police.
The
City of London would have been deeply affronted to have been invited to come
and discuss the issue of crime within their hallowed walls. It was not an issue
it wished to discuss and the whole place was governed by an arcane set of rules
imposed by the City fathers, and overseen by the rebuke of last resort, the
height of the Governor of the Bank of England's eyebrow! If any activities
needed the attention of the Police, the City fathers used to rely on the services
of their own fraud officers, who, while theoretically being a part of the joint
unit of the Metropolitan and City Police Company Fraud Department, tended
largely to look after things inside the City walls without overly bothering
their Met colleagues!
The
major issue for debate in those early years was the difficulty we Fraud Squad
officers faced in acquiring evidence from certain unwilling persons who did not
want to cooperate in our enquiries.
We
desperately wanted to be given powers similar to those possessed by the DTI to
demand access to the books and records of a company under investigation, and to
require them to answer questions about their accounting methods.
Some
of us even gave evidence before the Roskill Commission which enquired into the
way that Fraud Trials were conducted and how improvements could be made in
1986.
Among
the many agencies which now exist to deal with fraud in the UK and in Europe
are the following;
An
analysis of reported fraud in Government Departments together with anti-fraud
guidance produced by the Treasury.
The
Fraud Advisory Panel is an independent body of volunteers drawn from the public
and private sectors. Members include representatives from the law and
accountancy professions, industry associations, financial institutions,
government agencies, law enforcement, regulatory authorities and academia.
SOCA
was created by the British government in April 2006. It has taken over the
functions of the National Crime Squad (NCS), the National Criminal Intelligence
Service (NCIS), the role of HMRC in investigating drug trafficking and related
criminal finance and some of the functions of the UK Immigration Service (UKIS)
in dealing with organised immigration crime. In addition it now includes the
function of asset recovery.
The
aim of the SFO is to investigate and prosecute serious and complex fraud and so
deter fraud and maintain confidence in the probity of business and financial
services in the United Kingdom.
This
website is published by the National Working Group on Fraud on behalf of the UK
Association of Chief Police Officers (ACPO). The website deals primarily with
commercial fraud in a policing context.
The
Committee on Standards in Public Life was set up in October, 1994. Its terms of
reference are: To examine current concerns about standards of conduct of all
holders of public office, including arrangements relating to financial and
commercial activities, and make recommendations as to any changes in present
arrangements which might be required to ensure the highest standards of
propriety in public life.
IBAS
is an organisation for helping people in disputes with British banks.
Describes
the functions of the British banking ombudsman and gives information on how to
submit complaints. Various publications including the annual reviews are
available online.
Among
its many services the BBA provides information about the prevention of fraud
and money laundering.
The
FSA regulates the financial services industry and has four objectives:
maintaining market confidence; promoting public understanding of the financial
system; the protection of consumers; and fighting financial crime.
A
website produced by the British Government in cooperation with HSBC, Microsoft,
the Serious Organised Crime Agency and other organisations to give advice on
problems ranging from computer viruses and spam to online rip-offs and identity
fraud.
A
website produced by the Home Office Identity Fraud Steering Committee, a
collaboration between UK financial bodies, government and the police to combat
the threat of identity theft.
Advice
on how to recognise and avoid scams, from Consumer Direct, a telephone and
online consumer advice service, supported by the (UK) Department of Trade and
Industry.
Press
releases and reports from OLAF, the European Commission's anti-fraud office.
It
describes itself as "the financial conscience of the European Union.
The
Metropolitan Police Fraud Squad.
The City Police Fraud Squad.
The various Fraud and Commercial
departments of the other police constabularies in the British Isles.
Her Majesty's Revenue and Customs.
The Office of Fair Trading.
I am certain there may be others
whom I have overlooked, but my point is this.
In the attempts to reduce the
incidence of fraud, financial crime and money laundering, have we not been guilty
of creating a massive 'talk shop' in which more time is spent debating and
discussing the relative merits of individual agencies in dealing with crime, as
opposed to getting on with the job of dealing with it?
The Cambridge Symposium on Economic
Crime cannot be blamed for the development of this cat's cradle of competing agencies.
Repeatedly the Symposium has called for
a greater degree of clarity and cooperation in the interdiction and prosecution
of major fraud.
Sadly, these eminently sensible
requests have not been heeded, and we have now ended up with an edifice which
has become more convoluted than a Mandarin Chinese Court.
But no-one can say we didn't try!
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