Why partnerships matter more than ever
Fraud and scams were designated a national security threat in 2024. They’re now the most prevalent crime type in the UK, with the National Crime Agency estimating that close to £100 million is laundered through the UK every year.
It has long been recognised that tackling illicit financial flows and economic crime isn’t just the responsibility of law enforcement, government bodies, or traditional financial institutions. A whole system response is needed – one that makes it harder for criminals to operate and profit.
Regulation is tightening – but what about collaboration?
Clearer rules are expected for Cryptoasset Trading Platforms / Service Providers and Stablecoins. New legislation, specifically under the Economic Crime and Corporate Transparency Act has been introduced, providing law enforcement and regulators with further powers. But this raises a key question: what about partnerships?
The Joint Money Laundering Intelligence Taskforce introduced in 2015, has delivered significant results, with over £250 million in restrained or forfeited assets. But has it truly improved the landscape? Is the private sector contributing meaningfully to a solution or is cooperation driven by the threat of penalties?
It’s time to move beyond regulatory enforcement and building cooperation and creating a mutually beneficial partnership that is not only transactional. Afterall, economic crime can affect us all, either directly, through loved ones, or through its impact on vital public services.
From transactions to trust
Most interactions between public sector bodies and private organisations - especially in the digital asset space – are still transactional. A department needs a service, they pay for it, and a private entity delivers it.
Some relationships are even more one-sided. Take the Suspicious Activity Reporting (SAR) Regime: private (and more recently public) bodies submit reports on financial irregularities, but receive no feedback. With over a million SARs submitted annually in the UK a feedback loop or learning model, even if just at an organisation level, could help improve quality and impact.
A smarter approach: Prevention through partnership
Cryptoasset regulation is emerging globally. In the UK, new rules for trading platforms and stablecoin issuers are due to be introduced as part of the FCA’s digital asset theory of change. Internationally, the Cryptoasset Reporting Framework (CARF) and Directive on Administrative Cooperation 8 (DAC8) will reshape reporting for the majority of centralised platforms globally from January 2026, while the Markets in Cryptoassets Regulation (MICA) is already influencing the EU market.
It is therefore more important than ever, that regulators and supervisory bodies within the financial sector work collaboratively with private institutions to ensure requirements are fully understood, realistic, and implemented. The focus should shift from enforcement following errors to pre-emptive cooperation and preparation between all related parties. Grant Thornton has worked with a number of TradFi, FinTech, and cryptoasset trading platforms to build compliance regimes that stand-up to scrutiny - both at the request of private organisations and as FCA-appointed skills persons. The next step is deeper collaboration between regulators and those providing financial services to better protect consumers and strengthen the system.
Shared purpose, shared responsibility
Public and private organisations share a combined goal: tackling economic crime and illicit financial flows to create a more robust ecosystem.
Reducing fraud has benefits to all – our communities, supporting victims, increasing trust in the industry and in the public sector. It ensures money/finances is/are with where it/they belongs: with law-abiding members of the public, trusted private organisations, or supporting the delivery of vital public services. Given this shared purpose, and a growing understanding of the impact of economic crime on both an individual and at state level, now is the perfect time to strengthen partnerships and take meaningful next steps.
Let’s end the blame game
The response to economic crime and fraud unfortunately still draws significantly on a victim-blaming culture. Victims are often asked, “how did you fall for that?” Financial institutions are penalised for not stopping the customer payment, and government departments criticised for paying fraudulent claims and invoices.
This is a culture that criminals exploit. The focus on blame and what went wrong overshadows the efforts to make the system more robust and to identify and pursue offenders. It’s widely known that policing, and other law enforcement bodies, are stretched for resources, and not all economic crime can be investigated as other high-harm crime types take precedent.
Resources across the private sector could either directly assist law enforcement in their investigations or provide an alternative for victims to recover assets. Using these resources is not a negative reflection on law enforcement and their capabilities, but rather an intelligent use and strengthening of the partnerships that already exist between the public and private sector.
What good looks like
There are strong examples of Public Private Partnerships delivering real impact in tackling illicit finance:
- HMRC and Insolvency Practitioners working together to manage assets and maximise public value post-forfeiture.
- Blockchain analytics firms supporting police in anti-corruption cases.
- Grant Thornton’s work with legal teams and law enforcement to recover £520,000 for an 80-year-old victim of a crypto scam.
These cases highlight the successes when private sector skills and resources are used to advance – not compete – with those in the public sector. Public Private Partnerships can deliver meaningful benefit to all parties and, most importantly, increase the chance of funds being returned to victims, and preventing offenders from profiting.
Looking ahead: Building the next generation of partnerships
At Grant Thornton, collaboration is central to our approach and the drive for closer Public Private Partnerships runs across all of our business areas.
We are committed to advancing the next step in Public Private Partnerships - ensuring they deliver to their full potential and make it harder for bad actors to profit from economic crime.
Luckily, we are not alone and there are some driving forces across the public and private sector that understand the need for change, but the more coordinated voices we have, the faster the future will be realised. So next time you engage in a Public Private Partnership, consider the words of my former mentor,
“Are we being ambitious enough?”
For more insights and guidance on how we can all reinforce the partnerships aspect of Public Private Partnerships, get in touch with Adrian Morris.
