Treasury Committee chair Morgan criticises government over economic crime reforms
The chair of the Treasury Committee Nicky Morgan MP criticised the government today for failing to create a register of politically exposed persons to help fight economic crime.
Morgan was commenting on the government’s response today to the Committee’s recent report on economic crime.
“It is disappointing that the government has chosen not to endorse the committee’s recommendation for the creation of a register of politically exposed persons (Peps). The reality for many firms is that they lack the resources to identify all those who may be considered to be a PEP. By not endorsing a central register, the government is making the work of especially smaller firms in preventing economic crime more difficult,” she said.
Read more: Financial investment fraud cases jumped 74 per cent in 2018
In its report the government said a centralised database would “lead to a less dynamic and appropriate treatment of Peps than under the current approach; the government therefore does not accept the committee’s recommendation.”
Morgan welcomed the government’s acceptance of some of the Committee’s recommendations, such as its decision to reform Companies House.
Read more: Fraud squad boss tells firms to keep hold of incriminating evidence
Business minister Kelly Tolhurst unveiled a package of reforms to Companies House on Sunday, with the aim of helping tackle economic crime by increasing the traceability of company ownership and management.
Morgan said: “The recent announcement of a consultation into the reform of Companies House is timely, and the government should be ambitious in the new powers and resources that it proposes to provide to this vital component of the UK’s defence against economic crime.”