Law360 is providing free access to its coronavirus coverage to make sure all members of the legal community have accurate information in this time of uncertainty and change. Use the form below to sign up for any of our weekly newsletters. Signing up for any of our section newsletters will opt you in to the weekly Coronavirus briefing.
Sign up for our Corporate Crime & Compliance UK newsletter
You must correct or enter the following before you can sign up:
Thank You!
Law360, London (January 25, 2021, 3:48 PM GMT ) Staff at a London financial institution have been arrested by the National Crime Agency as it investigates abuse of the government's program for businesses struggling during the COVID-19 pandemic.
The NCA said on Saturday it has arrested three employees at the company, which it did not name, as part of a probe by its complex financial crime team into fraudulent claims on the Bounce Back Loan scheme totaling £6 million ($8.2 million).
Two of the suspects, aged 30 and 31, were arrested at work, while the third, aged 30, was held during searches, the NCA said. All three, who the agency did not identify but all live in London, were later released as an inquiry continues into the extent of their activities and whether others were involved.
"Ensuring the integrity of the financial sector is a vital part of our work to tackle illicit finance. Professional enablers who use their specialist knowledge to facilitate criminal activity represent a significant threat," Gary Cathcart, head of financial investigation at the NCA, said.
The agency said it believes that false data and documents were used to make the fraudulent claims.
The bounce back loan scheme, backed by government and banks, is aimed at giving small businesses access to finance quickly during the pandemic. Companies can apply on a bank's website by completing a form and declaring that they are eligible, according to the Department for Business, Energy and Industrial Strategy's website.
The scheme helps small and midsized businesses to borrow between £2,000 and up to 25% of their turnover, with a maximum loan capped at £50,000. The government guarantees 100% of the loan and no fees or interest are paid for the first 12 months.
Loans worth £31 billion had been approved under the program by July 2020, with HM Treasury saying tens of billions have been given to a range of industries to help businesses survive the pandemic.
The NCA has warned against professional enablers — workers in the financial and legal professions who facilitate crimes such as money laundering and tax evasion.
--Additional reporting by Najiyya Budaly. Editing by Joe Millis.
For a reprint of this article, please contact reprints@law360.com.
