PCD 1248 - Economic and Crypto Crime Dedicated Source Unit 2022/23

PCD 1248 - Economic and Crypto Crime Dedicated Source Unit 2022/23

This decision concerns a proposal to extend the Proof of Concept Economic & Crypto Crime Dedicated Source Unit (DSU) for a further 12 months through 2022/23. This team will be tasked to generate covert intelligence focused on Economic & Crypto Crime and the seizure of criminal cash and assets under the Proceeds of Crime Act (POCA) 2002.    

The proof of concept pilot scheme for an Economic Crime Dedicated Source Unit (EC DSU) commenced on 1st October 2021 (PCD1102 refers). With the acceptance of this grant funding the intention is to continue the proof of concept into the financial year 2022-2023. This ECDSU will focus on combatting financial, and economic crime including that of cryptocurrency. 

In accordance with the Scheme of Consent and Delegation, MOPAC approval is sought to accept Grant funding from the Home Office Asset Recovery Incentivisation Scheme for the new Economic & Crypto Crime DSU. 

The Deputy Mayor for Policing and Crime is recommended to:   

1. Approve acceptance of Grant funding from the Home Office Asset Recovery Incentivisation Scheme totalling £320,000 in 2022/23.  This funding will support the continuation of the new Economic & Crypto Crime Dedicated Source Unit (DSU) focused on Covert Human Intelligence Sources (CHIS) to combat financial and economic crime and the seizure of criminal cash, crypto currency and assets. 

PART I - NON-CONFIDENTIAL FACTS AND ADVICE TO THE DMPC 

1. Introduction and background  

1. The Home Office provided funding in 21/22 to support the initial ECDSU proof of concept pilot for a 6 month period 1/10/21 – 31/3/22, which secured MOPAC support previously (PCD1102).  Prior to this, there had been no Dedicated Source Unit within UK Law Enforcement to identify and develop Intelligence across economic crime and particularly the seizure of criminal cash or cryptocurrency.  

2. Over recent years the Dedicated Source Units have seen significant cash seizures, however these have been ancillary to their core tasks.  

3. This proposal seeks to evidence, that a focused Economic Crime DSU will realise significantly greater volumes of criminal cash seizures. 

4. Further information is contained within the Part 2 restricted section of this paper. 

2. Issues for consideration  

1. This Home Office bid seeks to support a further 12 month pilot ECDSU in 22/23. Depending on the success, a further longer term proposal will be submitted to the Home Office or it is anticipated this would become financially self-funded. 

2. This project seeks to continue with 4 additional posts; 1x Deputy Controller (DS) 2x Handlers (Constable) Posts and 1 Band D police staff post for a 12-month period commencing 1st April 2022. 

3. Due to the post COVID relaxation of movement it is believed there is now a disproportionate amount of criminal cash in motion, it is important that this Economic Crime DSU capitalises on this activity. 

4. At conclusion, should there be insufficient evidence to support a longer term proposal, the officers and member of police staff will be absorbed in the natural turnover of MO3 staffing.  

5. Further information is contained within the restricted section of this paper. 

3. Financial Comments  

1. The Grant supports 4 additional posts, based on full cost recovery, inclusive of overheads. The funding also provides for some specialist training. There is no requirement for additional vehicles, accommodation or other operational support costs needed to facilitate this proof of concept pilot.   

2. More detailed costings are contained in the restricted section of the report.  

4. Legal Comments  

1. MOPAC approval is sought pursuant to Paragraph 4.8 of the MOPAC Scheme of Consent and Delegation which provides the DMPC with delegated power to approve all offers made of grant funding.   

2. The legal powers applicable to the acceptance of this Grant will be under Schedule 3, Paragraph 7 of the Police Reform and Social Responsibility Act 2011 which provides that,  

1. 7(1)The) The Mayor’s Office for Policing and Crime may do anything which is calculated to facilitate, or is conducive or incidental to, the exercise of the functions of the Office. 

2. (2)That includes— 

1. entering into contracts and other agreements (whether legally binding or not); 

3. If approved, the terms of the grant offered by the Home Office will be formalised between the relevant parties overseen by MPS Commercial Services. 

4. The final Grant Agreement will be published pursuant to Articles 3, 4 & 5 of The Elected Local Policing Bodies (Specified Information) (Amendments) Order 2012. 

5. Commercial Issues  

6. If approved, the terms of the grant offered by the Home Office will be formalised between the relevant parties overseen by MPS Commercial Services, ensuring compliance and minimising risks. 

7. This pilot contributes to the London Anchor Institutions Charter, recognising that economic crime is a significant threat to the security and the prosperity of the UK. It influences all of our society, including our citizens, private sector businesses and the government. Money laundering enables criminals to profit from some of the most damaging crimes. All economic crimes weaken community confidence in the effectiveness of governmental and commercial organisations. Economic crime refers to a broad category of activity involving money, finance or assets, the purpose of which is to unlawfully obtain a profit or advantage for the perpetrator or cause loss to others.  

8. In line with the Asset Recovery Action Plan this project aims to:  

• disrupt criminal activity and the further funding of crime; 

• deprive people of their proceeds of crime; 

• discredit negative role models in society. 

4. The economic crime is a highly specialised area of investigation that would benefit significantly from bespoke support from an expert, trained and focused dedicated source unit. 

5. GDPR and Data Privacy  

6. The MPS is subject to the requirements and conditions placed on it as a 'State' body to comply with the European Convention of Human Rights and the Data Protection Act (DPA) 2018. Both legislative requirements place an obligation on the MPS to process personal data fairly and lawfully in order to safeguard the rights and freedoms of individuals. 

7. Under Article 35 of the General Data Protection Regulation (GDPR) and Section 57 of the DPA 2018, Data Protection Impact Assessments (DPIA) become mandatory for organisations with technologies and processes that are likely to result in a high risk to the rights of the data subjects. 

8. The Information Assurance and Information Rights units within MPS will be consulted at all stages to ensure the project meets its compliance requirements. 

9. A GDPR assessment has been completed. This project will be using the existing and well established MPS Informant Management System (IMS) and CRIMINT  database. Both of these are DPIA compliant addressing GDPR responsibilities. 

10. Equality Comments  

11. As this is an extension of an existing service this work does not change any aspects relating to equality or diversity. 

12. Background/supporting papers 

13. The initial 6-month ECDSU proof of concept was approved in decision PCD1102.