The British Bankers' Association outlines its views on the new
plans in a response to the Home Office's recent consultation paper
on organised crime. That paper outlined a number of anti-crime
measures, including the creation of corporate ASBOs for companies
suspected of participating in organised crime.
"Data sharing between the public and private sector has to be a
two way process," said the response of the BBA to the Home Office.
The BBA also asks that "[data sharing] does not occur where there
is no need, and avoids creating a competitive advantage".
The Home Office released a consultation paper proposing new
powers to tackle organised and financial crime. The consultation
period is over and its results are expected in November. The BBA
was critical in its response of the government's handling of
financial crime in the past.
"The Home Office proposals need to form part of an overall
package of measures that will address the fundamental problem of a
lack of strategic leadership in Government in tackling financial
crime that has contributed to the inconsistent measurement,
prevention, enforcement and prosecution of fraud in the UK," said
its response to Government.
The paper from Government proposed the creation of 'corporate
ASBOs', control orders on companies which are suspected of being
involved in criminal activity. In the introduction to the report
Home Secretary John Reid admitted that the orders would be used
where there was not enough evidence for a prosecution. "These sort
of orders might be used in cases where there was a strong weight of
evidence but either not enough for a prosecution," he wrote.
The BBA expressed reservations about the effects of such orders.
"At a pragmatic level, the proposal seems a laudable way of
targeting the activities of those on the fringes of criminal
activity without imposing further burdens on an already straining
criminal justice system," its response said. "However, as an
indication of government intentions towards tackling the causes of
crime, the proposed Ocpo (Organised Crime Prevention Order) raises
a number of concerns."
"These are: unless designed to prevent harm rather than as a
punitive measure, such orders might attract the protection of
Article 6 of the European Convention of Human Rights; inappropriate
application of Ocpo against an innocent institution, as a third
party supplier to the recipient of the order; pressure for banks
and other financial institutions to, in effect, monitor and police
the operation of the Ocpo and the recipient's compliance with it;
Ocpos should not replace the deterrence of prosecution where the
necessary evidence and proof of criminality exists."
The BBA also said that the plans will not necessarily lead to
more prosecutions of criminals. "It is clearly disappointing that
the proposals in themselves, even if implemented fully, will not
necessarily lead to increased police and law enforcement
investigations and prosecutions," said the BBA. "The absence of any
mandating or tasking of police investigations makes it difficult to
determine what the law enforcement outputs would be, if any. Whilst
interesting and useful to obtain a greater understanding of the
lifetime career of individual fraudsters, there can be no more
effective deterrent than prosecution, sentencing and asset
recovery."
The BBA represents 240 banks from 60 countries and claims that
financial services account for 8.5% of the UK economy and a quarter
of UK corporation tax.
Disclaimer: We hope you find OUT-LAW’s content useful. It’s prepared by the lawyers at Pinsent Masons. Please remember, though, that it’s intended as general information only. It’s not legal advice. If that’s what you’re seeking, please
contact us. See also: our
full disclaimer
