Economic Fraud
Organised criminals constantly seek to increase their profit and turning the proceeds into apparently legitimate assets is a key supporting activity for all aspects of organised crime. This is done by purchasing property (in Northern Ireland or abroad), or spreading money across numerous bank accounts, sometimes in other jurisdictions. They often combine their organised criminal activity with other frauds to make, and launder, money by making false declarations for the purpose of obtaining mortgages; or providing false income statements to obtain benefits or to evade tax or VAT.
Significant numbers of criminals use the border with the RepublicofIrelandto cover their money trail and to make detection by law enforcement more difficult. The international horizons of Northern Ireland organised criminals are expanding and there is evidence of properties being bought overseas and offshore trusts being used.
Criminals are becoming more aware of law enforcement powers to restrain, confiscate and seize their assets and they have been forced to use more sophisticated means of hiding their profits and some use the services of professionals such as accountants, solicitors or financial advisers. These, and other, professions are required to comply with money laundering regulations and face prosecution and severe penalties for failing to disclose their clients’ financial activities.
Prosecuting money laundering offences and confiscating assets acquired through criminal activity are pursued by PSNI and HMRC using criminal recovery procedures set out in the proceeds of crime legislation. If criminal recovery is not possible, for whatever reason, police or HMRC can refer the case to ARA for civil recovery or tax action.
NUMBER OF CONFISCATION & RESTRAINT ORDERS OBTAINED BY POLICE AND CUSTOMS
| 2003/04 | 2004/05 | 2005/06 | |
|---|---|---|---|
| Confication Orders | 7 | 12 | 9(PSNI) |
| Restraints Orders | 26 | 32 | 14(PSNI) |
AMOUNTS OF CRIMINAL ASSETS RESTRAINED, CONFISCATED OR SEIZED BY POLICE AND CUSTOMS
| 2003/04 | 2004/05 | 2005/06 | |
|---|---|---|---|
| Restrained (million) | £10.2 | £6.4 | £5.3 (PSNI) |
| Confiscated (million) | £1.03 | £1.4 | £0.337(PSNI) |
AMOUNT OF CRIMINAL ASSETS RESTRAINED OR SEIZED BY ARA 2005/06
| Number | Value | |
|---|---|---|
| Referred | 49 | £10.1 |
| Adopted | 22 | £6.6 |
Mareva/IRO/Tax Assessments | 21 | £15.9 |
