PCD 1384 MPS Cryptocurrency Investigation Team

PCD  1384 MPS Cryptocurrency Investigation Team

This decision seeks approval for acceptance of Asset Recovery Incentivisation Scheme (ARIS) grant funding of up £510,000 from the Home Office for part funding of the MPS Cryptocurrency Investigation Team for 2022/23and approval to bid for and accept up to £760,000 ARIS grant part funding for the years 2023 to 2026. 

The Deputy Mayor for Policing and Crime is recommended to:   

1. Approve the award of up to £510,000 Grant funding from the Home Office ARIS Top-slice fund to support the MPS Cryptocurrency Investigation Team for FY 22/23.  

2. Approval to bid for and accept up to £760,000 Grant Funding from the Home Office ARIS Top slice annually to support the MPS Cryptocurrency Investigation Team between 2023-26. 

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

1. Introduction and background.  

1. The risk posed by the criminal exploitation of cryptocurrency was rated as high and increasing in the National Strategic Assessment of Serious and Organised Crime 2021. London, as the country’s financial centre and the MPS as the largest police service in England and Wales, is dealing with the largest values of Criminal Cryptocurrency. The new team brings together the required expertise, training and equipment to tackle the threat, led by the MPS. 

2. The MPS assure that if the scheme is successful, there will be a significant return on investment due to seizure of criminal cryptocurrency and lessons learned from the proposed creative ‘first of its kind,’ model would be available to inform and shape the national policing response and legislative requirement. 

2. Issues for consideration.    

3. MPS Management Board approved the MPS Crypto Currency Investigation Team in October 2022 which is supported through the provision of 38 additional police officers under the Regional Organised Crime Units (ROCU) Police Uplift. 

4. This paper specifically relates to necessary approvals to secure grant funding for the provision of additional police staff posts, training, equipment and licences which are required to support the function. 

3. Acceptance of this funding contributes to the MOPAC Police & Crime Plan 2022-25. by taking the proceeds of crime away from criminals which both reduces the incentive to commit crime, including violent crime motivated by money, and increases the confidence and trust of communities in the effectiveness of the policing response. It helps reduce the attractiveness of a criminal lifestyle and thus protects, particularly socially disadvantaged and vulnerable people from being drawn into crime. 

3. Financial Comments.  

1. The funding secured for 22/23 will be used primarily to cover start-up costs for the scheme’s implementation, with training, equipment and licences being purchased in advance of Phase 1 in 23/24.  

• The Grant funding of up to £510,000 from the Home Office ARIS Top-slice fund to support the MPS Cryptocurrency Investigation Team for FY 23/24.  

• The Grant Funding of up to £760,000 from the Home Office ARIS Top slice annually to support the MPS Cryptocurrency Investigation Team between 2023-26. 

4. Legal Comments. 

1. 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,  

• 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.  

That includes 

• Entering into contracts and other agreements (whether legally binding or not);  

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

2. Paragraph 4.8 of the MOPAC Scheme of Delegation and Consent provides that the Deputy Mayor for Policing and Crime (DMPC) has delegated authority to approve all bids for grant funding. 

3. 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. Equality Comments. 

1. Tackling financial crime in London by seizing criminal assets narrows social and economic inequalities and supports our communities by driving out the incentive to follow a criminal path. 

2. MPS assure that this business case has undergone an initial Equality screening. Due regard has been taken to ensure compliance with the Public Sector Equality Duty. Real consideration has been taken to assess Equality impact caused by the proposal within this document. As a result, no negative impact has been identified to any individual and/or group safeguarded by a protected characteristic and those who are not. 

3. This paper seeks additional funding for an existing function, there is no real organisational change. Further reviews will be conducted and if as a result any new Equality Impact is identified, a comprehensive Equality Impact Assessment will be conducted. 

6. GDPR and Data Privacy. 

1. 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. 

2. 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.  

3. The MPS assure that the Information Assurance and Information Rights units within MPS will be consulted at all stages to ensure the contract meets its compliance requirements.  

4. DPIAs will be conducted to cover all uses of new third party technology and databases. 

7. Background/supporting papers. 

MPS paper - MPS Cryptocurrency Investigation Team