RUSI set to launch Centre for Financial Crime and Security Studies

The Royal United Services Institute (RUSI) has announced the creation of a new Centre for Financial Crime and Security Studies. The Centre will focus on the fields of financial crime, threat finance and financial intelligence.

Organised crime costs the United Kingdom no less than £24 billion per annum. Along with the impact of financial crime on the UK from both domestic and international sources, tackling threat finance is also a key security priority of the UK and international community (as illustrated by the efforts being undertaken to undermine the financial capabilities of ISIS).

In all of this work, partnership engagement between the public and private sectors can significantly enhance efforts in this field.

Commenting on the announcement, Professor Michael Clarke (RUSI’s director general) said: “The Centre is another example of RUSI being at the cutting edge of research on security issues. We add analytical value to policy studies. This new Centre will be a critical link between finance and Government and I welcome Tom Keatinge to the Institute. His experience will further strengthen our expertise on terrorism, organised crime and cyber security.”

Keatinge, who will head up the new Centre for Financial Crime and Security Studies, is a former managing director in the Financial Institutions Group and head of European public sector client coverage at JP Morgan.

Professor Michael Clarke: director general at RUSI

Understanding of criminal threats

Donald Toon, director of the Economic Crime Command at the National Crime Agency, said: “Strong academic research can add substantially to our understanding of criminal threats and help shape an effective response from law enforcement, regulators and the private sector alike. I very much welcome this initiative from RUSI which promises to provide a focal point for research into the problems around financial crime.”

John Cusack, global head of financial crime compliance at Standard Chartered, added: “I’m delighted that RUSI has decided to establish a new Centre for Financial Crime and Security Studies. The Centre is set to provide valuable contributions and be seen as a credible partner for all in the private or public sectors who wish to advance the debate and contribute to improving the effectiveness and efficiency around financial crime solving.”

Matthew Allen, director of financial crime at the British Bankers’ Association (BBA), commented: “A key part of identifying and stopping crime networks centres on understanding how they operate. This new Centre will provide the sort of vital insight that can help target responses and close in on the criminals. The BBA looks forward to working closely with RUSI on this initiative in order to help protect customers and ensure a safe financial system.”

Much-needed research focus

Based at RUSI, the Centre will comprise a dedicated team recruited from across finance, law enforcement and academia. The formal launch takes place at an event in the New Year.

The Centre will be based within the National Security and Resilience Studies Group at RUSI.

“The Centre will bring much-needed research focus and capacity to support the work of Her Majesty’s Government, other international Governmental partners and the private sector in addressing the challenges posed by financial crime and illicit finance in all of its forms,” explained Tom Keatinge.

*RUSI is an independent Think Tank for defence and security. A unique institution founded in 1831 by the Duke of Wellington, the organisation embodies nearly two centuries of forward-thinking, free discussion and careful reflection on defence and security matters

UK Government announces further measures to boost cyber security defences in the UK

On Friday 12 December, Francis Maude – Minister for the Cabinet Office – hosted an event at the Institute for Chartered Accountants of England and Wales in central London marking the third anniversary of the UK’s Cyber Security Strategy. On the day, Maude unveiled several additional measures being put forward by the Government to assist in safeguarding the online space for all citizens.

The event was designed specifically to address leaders in industry, academia and Government and highlight ways in which the UK is building skills to boost its growing cyber security sector. It follows hot on the heels of a report to Parliament on progress and forward plans scripted to make the UK one of the safest places in which to do business online.

Increasing the number of people with the right cyber skills is vital for both Government and industry as the UK collectively faces the reality of cyber threats. The Government’s work to improve the UK’s cyber security defences is led by the Cabinet Office, the Department for Business, Innovation and Skills and, of course, GCHQ.

Maude announced that the Government has committed to:

*Grants for colleges and universities in Birmingham, Liverpool, Lancashire and Newcastle that will improve cyber security education and learning (the grants being realised in partnership with companies including Barclays Bank and Hut Group, the online retailer)
*New cyber camps and mentoring schemes run in conjunction with the Cyber Security Challenge UK and the Cyber Growth Partnership to help computing graduates gain practical experience and begin a career in cyber security
*Cryptoy: a new and innovative Android app designed by students on placements at GCHQ to highlight exciting developments in cipher and code-breaking for a new generation of cyber specialists
*A virtual hub operated in conjunction with the Council of Registered Ethical Security Testers (CREST) that’s ultimately designed to inspire students towards cyber security careers and provide advice and information on job opportunities
*New cyber security careers resources for students within the Graduate Prospects careers website
*An updated guide for business on the cyber security skills initiatives that will help develop the skills of their own staff members and nurture future talent

“As part of this Government’s long-term economic plan,” stated Francis Maude, “we want to ensure that Britain is one of the safest places in which to do business online. Over the past three years, we’ve taken a strategic approach to improving cyber security, working with others to deliver schools programmes. We’ve also certified six Masters degrees and established two centres for doctoral training alongside 11 Academic Centres of Excellence.”

The MP continued: “Given the work of Alan Turing and Bletchley Park in days gone by, the UK has a proud heritage in cryptography and computer science. Today, no less than 40,000 people work in our cyber industry and we have 14 cyber security ‘clusters’ across the country, but we do want to develop greater skills and encourage more people to pursue a career in this growth area.”

Maude concluded: “We do hope the Cryptoy app will spark a new interest among individuals to pursue a career in cyber security. Our new cyber camps, mentors and Higher Education Academy grants will help more people when it comes to embarking on a cyber security career.”

Read the minister’s speech in full

Francis Maude MP delivering his speech at the Institute for Chartered Accountants in England Wales, central London

UK’s cyber security talent pool

Stephanie Daman, CEO of the Cyber Security Challenge UK, responded to the MP’s speech by stating: “This announcement highlights the Government’s ongoing commitment to improving the size and quality of the UK’s cyber security talent pool. It also demonstrates a real understanding of the fact that addressing our cyber security skills gap requires a sustained programme of targeted support for innovative programmes and initiatives that are inspiring the next generation of cyber professionals.”

Daman added: “Government’s support now spans a huge range of opportunities, from innovative tools such as Cryptoy to a national mentoring programme and a raft of new cyber camps designed to inspire budding cyber defenders. As a country, we’re now creating extraordinary opportunities for young people who demonstrate the aptitude and appetite to forge successful and rewarding careers in cyber security. I’m encouraged that, with the continued backing of Government, UK businesses and academia we’re doing exactly what’s required to future-proof the cyber security capabilities of the UK.”

Mark Hughes, president of BT Security, explained: “Making certain that security’s right and protecting businesses, Government and the general public against cyber attacks is vitally important. Data breaches and attacks are an everyday threat to business and, with the UK cyber security industry now worth £6 billion a year, it’s critical that we build a pipeline of talented people to fill the gap in skills we’re currently experiencing.”

Hughes went on to say: “Recruiting into the industry is notoriously difficult. On that basis, it’s critical that we engage in strategic activity that helps find the right people, prepares them for jobs in the industry, trains them and makes them ready to take on key roles in the cyber security profession.”

In conclusion, Hughes outlined: “It’s for this reason that BT is proud to be supporting the cyber camps and mentoring schemes announced by Francis Maude. It’s not enough that we concentrate on developing the workforce of today. If we’re to build and maintain resilient infrastructure in the UK then we simply must develop the workforce of the future. BT is fully committed to helping create that workforce.”

Professor Stephanie Marshall, CEO of the Higher Education Academy, also voiced opinion on the matter. “If the UK is to be equipped to respond to cyber threats,” opined Marshall, “we need to strengthen the pipeline of cyber talent and help prepare students for entry-level security career opportunities. The Higher Education Academy is pleased to be able to offer support to higher education providers when it comes to developing innovative projects involving strong partnership with businesses that will improve cyber security teaching and learning across the discipline of computing and the sectors beyond.”

Marshall also explained: “All four projects launched at this event have the potential to do this, thereby helping to improve the skills of graduates, address the shortage of cyber security skills and future-proof the country’s IT sector, in turn making it more resilient to possible cyber attacks.”

City directors sentenced to 28 years behind bars for £23 million green biofuel fraud

Three men have been sentenced at Southwark Crown Court as a result of the Serious Fraud Office’s investigation and prosecution of Sustainable Growth Group (‘SGG’) including its subsidiary companies Sustainable AgroEnergy plc (‘SAE’) and Sustainable Wealth (UK) Investments Ltd (‘SWI’).

All three were convicted following a prosecution which focused on the selling and promotion of SAE investment products based on “green biofuel” Jatropha tree plantations in Cambodia. The green biofuel products were sold to UK investors who invested primarily via self-invested pension plans. These investors were deliberately misled into believing that SAE owned land in Cambodia, that the land was planted with Jatropha trees and that there was an insurance policy in place to protect investors if the crops failed.

*Gary Lloyd West (of Hertfordshire, the former director and chief commercial officer of SAE) was sentenced to a total of 13 years’ imprisonment
*James Brunel Whale (of Sussex, the former director, CEO and chairman of SGG) was sentenced to a total of nine years’ imprisonment
*Stuart John Stone (of Shropshire, director of SJ Stone Ltd, a sales agent of unregulated pension and investment products) was sentenced to a total of six years’ imprisonment

Both West and Whale have been disqualified from being directors for 15 years while Stone has been disqualified for ten years.

City directors have been sentenced to a combined total of 28 years in prison for a £23 million green biofuel fraud

“Thickening quagmire of dishonesty”

When handing down sentencing, Judge Beddoe described the fraud as a “thickening quagmire of dishonesty” and that “there were more than 250 victims of relatively modest means, some of whom had lost all of their life savings and their homes.”

The Judge added that the bribery was an aggravating feature.

Jane de Lozey – the Serious Fraud Office’s (SFO) Head of Fraud – commented: “This is the first of a number of SFO cases to come to trial involving the miss-selling of investment products connected with self-invested pension plans in which savers on modest incomes have tried to invest for their retirement only to find themselves the victims of fraud. Pension scams can be difficult to detect even for experienced investors. The SFO is working closely with partner agencies across law enforcement to tackle this type of serious economic crime.”

Legal proceedings to establish compensation and confiscation orders against the three defendants have commenced.

City of London Police targets the Christmas counterfeiters in planned raids

Detectives from the City of London Police’s dedicated Intellectual Property Crime Unit have arrested three individuals in morning raids and seized more than 1,500 suspected fake goods as part of a crackdown on counterfeit goods being sold online in the lead-up to Christmas.

The operations that took place on Tuesday 9 December form part of the force’s current ‘12 Online Frauds of Christmas’ campaign which has been rolled out across the country to protect millions of people from falling victim to cyber fraudsters.

Detectives from the Police Intellectual Property Crime Unit (PIPCU) arrested a 31 year-old man at his home on suspicion of selling counterfeit designer watches online.

Upon searching the man’s home, officers found and seized around 1,500 suspected fake watches from a range of top designer brands which, if sold at the genuine retail price, are worth around £1 million.

With support from Leicestershire Police, the man was taken to a police station for questioning and later released on bail until May 2015.

In Leeds, the unit arrested a 26 year-old man and a 28 year-old woman at two residential addresses following a referral from the Anti-Counterfeiting Group, a trade organisation which represents rights holders in the branded goods sector.

The City of London Police wants to see counterfeit goods sellers behind bars

The man and woman are suspected to be two of the UK’s top sellers on social media for counterfeit designer goods. Approximately 150 suspected fake goods were seized from the two properties including designer shoes, handbags, clothes and watches.

The individuals concerned were taken to local police stations for questioning and cautioned by officers.

Sending out a strong message

Detective Chief Superintendent Dave Clark said: “The action taken by the PIPCU sends out a strong message to anyone thinking of selling or buying fake goods that the police take this issue very seriously.”

DCS Clark added: “Counterfeit goods are cheap and shoddy versions of the original and the public need to be aware that they are potentially putting themselves at risk by buying them. Not only can fake goods such as cosmetics or electrical items pose a risk to your health but, if you buy any counterfeit items online, you risk having your computer infected with viruses and malware or your financial details being compromised.”

He concluded: “We would urge anyone who thinks they have unknowingly bought counterfeit goods this Christmas to report it to Action Fraud on 0300 123 2040 or online. Don’t forget… If you believe someone is selling counterfeit goods, you can report it anonymously to the charity Crimestoppers.”

Tim Mascall, director of the IP Crime Unit, stated: “The success of these raids once again shows the value of having a dedicated police unit to co-ordinate the fight against intellectual property crime. The City of London Police’s anti-counterfeiting initiative in the run-up to Christmas is a timely reminder of the serious and insidious nature of product counterfeiting. It’s important for us all to remember that this is not the victimless cottage industry the counterfeiters would have us believe, but rather a well-organised international criminal enterprise often with links to other types of serious crime.”

MPs unite behind counter-terror legislation amendment opposing Temporary Exclusion Orders

Following the introduction of the Counter-Terrorism and Security Bill by Home Secretary Theresa May, a cross-party amendment has now been tabled opposing the Government’s proposed Temporary Exclusion Orders.

According to fundamental rights and freedoms concern Liberty, Temporary Exclusion Orders (TEOs) would effectively exile British citizens by revoking their passports when outside of the UK and risk exposing them to torture or possibly delivering them into the hands of terror factions.

The proposed amendment to the Bill, drafted by Liberty, would replace TEOs with a Notification and Managed Return Order (NMRO). These would allow the Home Secretary to require airlines and other carriers to notify her of the return plans of those whom she suspected of terrorism abroad. The authorities could then use their existing powers against a suspect when they return to the UK.

Crucially, the Home Secretary would not have the power to revoke passports while individuals are outside of the country.

Shami Chakrabarti: director of Liberty

Shami Chakrabarti, director of Liberty, commented: “Instead of abandoning British citizens abroad to the possibility of torture or further radicalisation, shouldn’t we deal with them within the rule of law? This amendment would put some much-needed common sense into this counter-productive and illiberal Bill. We urge Parliamentarians to support it.”

The amendment is supported by the Labour Party’s front bench and the Green Party.

TEOs – and Liberty’s suggested amendment – were debated on the Second Day of Committee Stage of the Counter-Terrorism and Security Bill on Monday 15 December.

Speaking out against the Government’s proposals

A number of MPs have already spoken out against the Home Secretary’s proposals.

At Second Reading, Sir Menzies Campbell MP said: “I confess that I’m by no means convinced of the legality of what is being suggested under TEOs. What’s the position of someone who declines to accept conditions of return and who is not subject to deportation by the country in which they temporarily find themselves? Are they not de facto stateless in such circumstances?”

Also during Second Reading, former Attorney General Dominic Grieve QC MP pointed out: “It’s a fundamental principle of the common law in this country that an individual, unconvicted – the presumption of innocence applies – should be free to reside in his or her own land. The principle of exile, as a judicial or even administrative tool, has not been tolerated in this country since the late 17th Century. Even if exclusion is on a temporary basis, what’s being proposed is a draconian and unusual power being taken by the State. The point has been made that the proposal could be in breach of our international legal obligations by rendering a person stateless.”

Chris Bryant MP said: “TEOs would, in effect, result in the exile – albeit short-term and temporary – of British citizens, in many cases to other countries. All history suggests that such action further radicalises people and makes them more dangerous enemies to this country.”