Since June 2012, the Treasury has received LIBOR fines from the FCA; to date, they have imposed total fines in excess of £450 million relating to its investigations of LIBOR manipulation. This Government promised that this policy would reflect that those who have paid fines in our financial sector, because they demonstrated the very worst of British values, are paying to support those in our Armed Forces and emergency services who demonstrate the very best of British values. We are working with OGDs and relevant charities to ensure that all LIBOR fines received to date will be committed within the life of this Parliament.
The administration of LIBOR fines varies according to the type of organisation applying and receiving the money. In particular, where a Government Department, such as the MoD has been identified as the organisation best suited to deliver the outcome – for example, support for childcare at military establishments – normal Departmental processes have applied. In other circumstances – such as those in support of the Armed Forces Covenant, the Covenant Reference Group – a cross-Whitehall representative body which includes charity representation, provides the guidance on those areas where LIBOR funds could be used to best effect.