Policy background Information Order (IO)
Information Orders (IOs) are a valuable tool for NCA officers to develop intelligence on money laundering and terrorist financing. The power was originally introduced under the name Further Information Orders, as amended to IOs, under section 339ZH to POCA and 22B to TACT by the Criminal Finances Act 2017, as an investigative tool. There are multiple reasons in which an IO can be applied for, for example an order can be made to examine whether a person is engaged in money laundering or terrorist financing. It compels businesses in the Anti-Money Laundering (AML) regulated sector, (for example, banks, accountancy, and legal sectors) who have submitted a statutory disclosure also known as a Suspicious Activity Report (SAR) to provide further specific information about their customer or client. The additional information allows the NCA to build on existing intelligence and assist law enforcement with investigations or determine whether an investigation should commence.
	The UK is a member of the Financial Action Task Force (FATF), which is the international body devoted to developing and promoting policies to combat money laundering and terrorist financing. FATF’s 2018 Mutual Evaluation Report assessed the UK Financial Intelligence Unit (UKFIU) as partially compliant in its ability to seek all the information it requires from regulated businesses to perform proper operational and strategic analysis. This is in part because the current IO power: (a) relies on a preceding SAR; and (b) has not been used since its introduction to demonstrate the UKFIU’s ability to compel information.
	The measures in the Actwill assist NCA officers to proactively gather intelligence without reliance on a SAR. The information gathered under these measures is designed to be used for intelligence purposes only. They will align the power more closely with international recommendations in relation to the functions of the UK Financial Intelligence Unit (UKFIU), which re-orientates the power towards assisting the NCA in carrying out its functions to conduct intelligence gathering and conduct analysis, rather than being investigatory-focused, as it is now. The Act will do this by:
removing the requirement of a preceding SAR in order to enable the NCA to proactively gather intelligence.
amending the conditions for the magistrates’ or sheriff courts to make orders to businesses in the AML regulated sector where the information is likely to assist the NCA or an overseas Financial Intelligence Unit (FIU) making an application to carry out its financial intelligence unit functions.
	The power will increase the UK’s ability to support foreign partner FIU requests where no SAR has already been submitted by UK reporters. An example of this is the suspicion of terrorist financing where gathering information at speed is crucial.
	As the UK is one of the most globalised economies, it is crucial that it plays its part in collaborating with other FIUs, and to prevent illicit funds from entering the UK economy and combating illicit financial flows at an international level.