The UK’s new FBI-style organisation, the Serious Organised Crime Agency, will oversee a root-and-branch overhaul of the UK government's drive against money laundering under plans revealed yesterday.

SOCA’s chairman, Sir Stephen Lander, a former head of MI5, the UK internal security service, said that reporting suspicious financial transactions had "serious weaknesses" including a lack of clear management of the regime and poor communication between the financial sector and law enforcement agencies.

Sir Stephen had been asked to review the system amid mounting criticism of the regime from within the financial services sector, including the amount of red tape and the absence of feedback.

Under the new proposals, IT and specialist investigators are to be increased and liaison between banks and police strengthened. A top-level steering group from the financial services sector and law enforcement agencies will oversee casework and the processing of suspicious activity reports.

SOCA plans to double the number of staff employed centrally in analysing reports to about 200. Additional investigators will be recruited from the private sector and agencies such as the Financial Services Authority.