The UK government is considering a data-driven approach to combat economic crime in the country. This comes in response to the increasing volume of data being created and the need to unlock its power. The government aims to leverage technological advancements in data networking and analytics, as well as legislative developments that provide clarity and confidence in data sharing. The Economic Crime Data Strategy, launched in March 2023, is seen as a key tool in revolutionizing the response to economic crime [4ef96b8f].
The proposed data-driven response to economic crime emphasizes the importance of a collaborative data analytics ecosystem and the involvement of experts from financial crime, data science, digital trust, and data privacy fields. The goal is to build a system architecture that enables effective data pooling or federated data systems. Strong system governance and the input of data ethics and data trust communities are seen as crucial in maintaining public trust and confidence in the system.
The UK government's focus on a data-driven response to economic crime aligns with its broader efforts to create a Smart Data economy. The government's proposed changes to the Data Protection and Digital Information Bill aim to establish the UK as a world-leading data economy, remove barriers for businesses, and protect the public purse while ensuring privacy and data protection. These changes include new powers to require data from third parties, such as banks, to help reduce benefit fraud and save up to £600 million over the next five years. The amendments also introduce measures to preserve relevant personal data from social media companies in cases of child suicide, strengthen national security through the use of biometric data, and improve efficiency in data protection for security and policing partners [4ef96b8f].
In the United States, the Department of Justice (DOJ) is also embracing data analytics in combating white-collar crime. Acting Principal Deputy Assistant Attorney General Nicole M. Argentieri announced at the 39th International Conference on the Foreign Corrupt Practices Act (FCPA) that the Criminal Division is applying data analysis tools to FCPA investigations. The DOJ expects companies to adopt a similar data-driven approach to compliance, focusing on monitoring third parties throughout the lifespan of the relationship. The DOJ's use of data analytics extends beyond public data and includes private information obtained during investigations. Implementing a data-driven compliance program comes with challenges, and companies must invest in the necessary resources and technology to meet the DOJ's expectations. By doing so, they can improve the effectiveness of their compliance programs and mitigate the risk of fraud [b180205f].
The UK and US governments' embrace of data analytics in combating economic crime reflects a global trend towards leveraging technology and data to enhance law enforcement efforts. Both countries recognize the power of data in identifying patterns, detecting anomalies, and uncovering potential risks. By harnessing the potential of data analytics, governments can strengthen their ability to prevent and investigate economic crime, ultimately leading to a more secure and resilient economy [4ef96b8f] [b180205f].
