More jobs for the boys

Citation

Rider, B. (2007), "More jobs for the boys", Journal of Money Laundering Control, Vol. 10 No. 3. https://doi.org/10.1108/jmlc.2007.31010caa.001

More jobs for the boys

The Assets Recovery Agency has proved to be yet another missed opportunity in the fight against serious and organised crime. Other countries have managed to deprive criminals of significantly greater sums of money than we have hitherto been able to do. As the press headlines emphasise “Government spent £65m to seize £23m of criminals” assets' (Times 21 February 2007). The ARA has, however, a much larger amount under “restraint” awaiting determination in often protracted and complicated legal proceedings. It is also the case, as Jane Earl, the outgoing Director, has repeatedly emphasised the legislation was flawed and the agency could not pursue assets that criminals have held for more than 12 years. Having said this, the National Audit Office in its recently published report on ARA was critical of many aspects of its activities and in particular its lack of an effective case management system and the high turnover of staff – particularly its financial investigators. While there were clearly manifest failures in the staffing and running of the agency, it must be remembered that no feasibility study was conducted before its creation and government – as usual in this area, took little advice and that from its friends. For example, despite concern in many countries and even EU studies, it appears that it came as a shock to ARA and the government that it would incur considerable costs in managing property owned by criminals pending final determination. In fact it has spent in fees for receivers nearly £16m.

The government also missed the point – that agencies such as ARA are better judged in terms of their ability to disrupt serious and profitable crime, than deprive the so-called “Mr Bigs” of their ill-gotten gains – this as operation Trinity has shown is often best left to the revenue. Taking every thing into account, Jane Earl has not done badly, particularly as she admits she started from cold, knowing no relevant law or having had any experience in law enforcement. Of course, why unlike every other jurisdiction we did not appoint a senior lawyer or even a judge, is anyone's guess. Perhaps the prime minister did not know any!

It was pretty obvious within weeks of ARA being wheeled out that the wheels were going to fall off. Hence, the excessively high departure rate of trained and senior staff and low morale. Over the last year or so very bright young social scientists from the cabinet office and treasury have been running around – here and in the USA, getting “the knowledge” and explaining that Tony really is disappointed and Gordon is sorting it all out as a priority. Indeed, over a year ago the chancellor let it be known that he wanted to be “hands on” – at some time in the future in overseeing security and that resurrecting Bletchley Park and populating it with the best young brains in the city, would really worry criminals and terrorists. The zealous young men from Whitehall – all very keen to finish this “project” off before moving on to something with a bit of “career in it” emphasised that their political bosses were prepared to think “outside the box” (no pun intended) and even consider things like – a statutory obligation to explain unexplained wealth – or reward those who informed. The result of all this semi-secret activity, however is less radical and somewhat boring. The financial challenge to crime and terrorism (H.M. Treasury, Home Office, SOCA and FCO, February 2007) comes out with all the old, unresearched, figures on the extent of organised crime's financial activities and still seems to think terrorist's use the banks. While disappointing it does, however, make a really important point – the task and objective is one of disruption – something we have been emphasising in these pages for many years!

On the back of all this, ARA is going to be dissolved and its powers and probably at least some of its staff (those who are still there) transferred to SOCA. Of course, SOCA has itself much to prove once it is able to sort out its own recruitment. It remains to be seen whether it will manage to secure the confidence of law enforcement, let alone the all important private sector. Whether it was sensible to populate the upper levels with ex-spooks and “specialists” has been questioned – not least in police and justice circles – particularly overseas. It is a gamble that has paid off in very few countries. Whether SOCA even when firing on all cylinders, is well placed in terms of ethos, resources, accountability and expertise to do what ARA was supposed to is highly questionable. On the other hand if, as seems sensible, we are going to let the Mr Bigs keep their dosh, educate their kids – make a few donations and become legitimate – rather like some of our domestic terrorists, then SOCA should find the powers useful for disrupting and assisting the revenue.

Barry Rider