A review into the structure within the Treasury for the implementation of financial sanctions has been announced as part of the 2015 Budget.
The review, which is aimed at building a strong and stable financial system, will delve into the Financial Policy Committee’s work with the law enforcement community to ensure these sanctions are fully carried out.
It will take into account lessons from structures in other countries, including the US Treasury Office of Foreign Assets Control. In a letter published alongside the Budget, the chancellor also provided the Financial Policy Committee with its remit and recommendations for the year ahead.
The FPC was created in 2013 and tasked to ensure banks do not recreate the conditions that led to the last financial crisis.
The government previously legislated to implement a ring-fence to separate a bank’s core high street banking services from investment banking through the Banking Reform Act (2013).
The Budget 2015 also saw a rise in the rate of the bank levy from 0.156 per cent to 0.21 per cent from 1 April this year, which will raise an additional £900m a year, according to Chancellor George Osborne.
In addition to a stinging rebuke over the PPI mis-selling and rate-fixing scandals, the chancellor said, as the banks had drawn the UK economy into the financial crisis, they had to “support us coming out of the economic crisis”.
Rajiv Vadgama, tax director at Baker Tilly Tax and Accounting, said: “The government’s review of structures within HM Treasury of financial sanctions and its work with the law enforcement community is welcome news.
“This will ensure sanctions are imposed fully and ensuring financial crimes are dealt with properly. Any person guilty of an offence under the relevant UK regulations would be liable, on conviction, to imprisonment and/or a fine.”