Treasury Committee House of Commons, Committee Office, SW1A 0AA Tel 020 7219 5769 Email [email protected] Website www.parliament.uk/treascom

The Rt Hon. James Brokenshire MP Minister of State () Via email 22 September 2020

Dear James,

The recent release of the FinCen papers to the media has once again placed a spotlight on the UK’s approach to combatting economic crime. This was the focus of a previous Treasury Committee inquiry, which led to the publication of a Report entitled Economic Crime - Anti-money laundering supervision and sanctions implementation in March 2019.

Following the release of the so-called FinCen files, I would welcome your answers to the following questions: • What needs to be done to further secure the financial system from Economic Crime, given the information in the FinCen files? Are any of the UK law enforcement agencies following up on the information in those leaks, to see if more can be done to combat economic crime? • It is reported that a leaked US Treasury paper argued the UK was a “higher-risk” jurisdiction. Have you had similar comments from US authorities, and would such an identification concern you? • The Economic Crime Plan, 2019 to 2022, notes that “[…] the NCA will ensure the UKFIU meets international best practice by December 2020. Home Office, supported by HM Treasury and NCA, will consider whether any legislative changes are necessary to meet the requirement under international standards for UKFIU to be sufficiently operationally independent and autonomous.” Are you on track to meet that commitment? • The Economic Crime plan also notes that “[…] the SARs Transformation Programme will agree the next iteration of the target operating model for the future SARs regime by December 2020. Alongside designing the future regime, the Transformation Programme is also defining and implementing shorter term improvements to the regime to improve effectiveness and efficiency. This includes the NCA delivering the first tranche of the IT transformation of the SARs regime, as well as delivery of some near-term improvements.” Are you on track for that? • Are you confident that the reforms outlined in the Government’s response to the Corporate transparency and register reform consultation are swift and full enough to ensure Companies House cannot be an aid to economic crime?

Finally, to what extent are you concerned about how the release of the FinCEN papers might impact on the submission of SARs (regulatory requirements aside) and have you assured yourself that the UK system is robust to potential leaks?

Given their respective roles in combatting economic crime, I will also be writing to HMRC, the Minister for Climate Change and Corporate Responsibility and the Financial Conduct Authority.

I have copied this letter to Rt Hon. Yvette Cooper, the Chair of the Home Affairs Committee.

With best wishes.

Yours sincerely,

Rt Hon. MP Chair of the Treasury Committee