Addressing economic crime is not only a matter of justice and national security, but also a critical strategy for promoting sustainable economic growth, according to a report from All-Party Parliamentary Groups (APPGs) on Anti-Corruption and Responsible Tax, and Fair Banking, alongside the UK Anti-Corruption Coalition. 

With an estimated £350bn lost annually to fraud, money laundering, tax evasion, and related illicit activities, the report – Clean Foundations for Growth: Unlocking Economic Opportunity by Tackling Economic Crime – presents a compelling case for strengthening the UK's response to economic crime. 

According to the report, these financial crimes significantly undermine market integrity, erode public confidence and adversely affect the UK's global reputation. The associated economic cost is substantial, with implications for investment, public service funding and the overall health of the financial system. By curbing these activities, the UK could potentially recover revenues equivalent to the combined annual budgets for health and education.

The report has four principal themes: transparency, regulation, enforcement and accountability. It sets out 40 specific recommendations for reform, many of which have direct implications for the accountancy profession. 

The vast majority of accountants are not professional enablers of economic crime. On the contrary, the profession has long played a proactive role in identifying risks, promoting ethical standards and supporting efforts to prevent and detect illicit financial activities. 

Accountants across the UK are committed to upholding the highest levels of professional conduct and continue to work collectively, alongside regulators and enforcement agencies, to help reduce economic crime and strengthen the integrity of the financial system.

Increased responsibility for accountants

The enhancement of transparency in ownership structures is a key focus area for the report, coinciding with the Companies House reforms currently underway. The report calls for the expansion of public beneficial ownership registers to include limited partnerships, trusts and overseas entities holding UK assets. These registers should be accurate, verifiable and accessible to both regulators and the public.

These measures imply increased responsibilities for accountants in relation to the disclosure and verification of beneficial ownership information. Practitioners involved in the formation and administration of corporate structures, trusts, or nominee arrangements will need to ensure that the data provided is accurate and compliant with new standards. Failure to meet these requirements could result in civil penalties or regulatory enforcement.

New obligations

The report further advocates for extending anti-money laundering (AML) obligations to a broader range of professional services. It recommends the inclusion of tax advisers, auditors, public relations firms, universities, developers and other entities not currently subject to AML regulations. This expanded scope seeks to close existing regulatory gaps and ensure a consistent approach across the professional services sector.

Another significant proposal is the introduction of a statutory offence of ‘failure to prevent economic crime’. This would impose corporate liability on firms that fail to prevent fraud or money laundering conducted by employees or associates, unless adequate preventive measures can be demonstrated. 

The report supports provisions for senior executive accountability, placing responsibility on firm leadership for ensuring effective oversight and compliance. Similar but limited measures have been introduced under the Failure to Prevent Fraud offence, which comes into force in September 2025. However, this would greatly expand the scope of any such offence. 

A proactive response

These proposals necessitate a proactive approach from accountancy firms. Senior professionals must review and strengthen internal governance and risk management frameworks. Documentation of compliance efforts, including risk assessments, training programmes and reporting mechanisms, will be essential to demonstrate adherence to the expected standards. 

The report also highlights the need to bolster enforcement capabilities. It identifies underinvestment and fragmentation among enforcement agencies as barriers to effective action. Recommendations include reinvesting the proceeds from asset recovery and fines into enforcement bodies, and the introduction of a levy on technology platforms to fund efforts to combat online fraud.

Enhanced enforcement is expected to increase demand for forensic accounting, asset tracing and litigation support services. Accountants will be required to collaborate more closely with enforcement agencies, providing financial analysis and expert insight to support investigations and recovery actions. 

The APPGs propose a transition from the current model of self-regulation in AML supervision to a statutory regulatory framework. Under this model, a centralised supervisory authority would oversee AML compliance across professional sectors, including accountancy. This authority would have powers to impose sanctions, conduct inspections, and refer serious breaches to law enforcement. 

Increased compliance

For the accountancy profession, this would entail greater regulatory scrutiny and potentially increased compliance costs. It requires engagement with policymakers and regulators to ensure that any new supervisory framework is proportionate, effective, and informed by industry expertise. ICAEW has repeatedly communicated this to the government during its review into AML supervision. 

The report concludes by emphasising the economic rationale for reform. Strengthening the UK’s framework for tackling economic crime is presented as both a governance priority and an economic opportunity. Enhanced transparency, robust regulation and effective enforcement are viewed as essential to restoring investor confidence, attracting legitimate capital and supporting long-term economic resilience. 

The accountancy profession plays a central role in this agenda. Accountants, through their work in financial reporting, tax compliance, auditing and advisory services, are uniquely positioned to identify and mitigate financial irregularities. As the regulatory landscape evolves, the profession must continue to uphold high standards of integrity, transparency, and accountability.

The report sets out a detailed roadmap for strengthening the UK’s response to economic crime. For the accountancy profession, it signals a shift towards more stringent oversight and broader responsibilities. By adopting a proactive approach and engaging constructively with the proposed reforms, the profession can contribute meaningfully to the goal of fostering clean and sustainable economic growth.