Fears Over Blair's Planned Anti-Terrorism Measures Increase

by Jason Gorringe, Tax-News.com, London

03 October 2001

With the announcement on Monday that proposed anti-terrorist legislation could significantly increase the Inland Revenue's ability to share information with other enforcement agencies, fears are increasing that confused policy making could result in an increased burden on financial institutions and innocent citizens.

At present, the UK taxation authority holds information on over 32 million individuals and 1 million companies, but its ability to report 'suspect' activity to the police is extremely limited. However, as part of a hastily put together package of anti-terrorist reforms which is said to include extended electronic surveillance, increased powers of detention, and greater financial reporting, the government is considering increasing information sharing between the IR, Customs and Excise department, and law enforcement agencies. In the past, this disclosure has been limited to murder and treason cases.

Apart from the threat to financial privacy and increased costs, there are concerns among the finance sector that increased reporting for institutions will make the fight against money laundering dangerously unfocussed.

A barrage of new paperwork and bureaucratic procedures may obscure genuine criminals from view, whilst placing an unecessary burden on ordinary citizens. Therefore, experts argue that the role of public authorities should be to actively pursue known and suspected criminals, rather than to passively wait to receive reports from financial institutions.

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