Much of £12 billion of criminal cash generated in UK each year 'laundered through high street shops' says NCA

AROUND £12 billion of criminal cash is being generated in the UK every year, the National Crime Agency (NCA) estimates.

Much of it is laundered through high street Turkish barber shops, nail bars, vape shops, car washes, American-themed sweet shops and other cash-based businesses, the NCA said today.

Money service bureaus and some gambling venues are also being used, it said.

The agency said while the majority of such businesses remain legitimate, that there has been a rapid "eye-watering" growth in them over the past few years.

Crime gangs use them to enter cash into the financial system, mixing legitimate funds with criminal profits to hinder subsequent law enforcement investigations. They are known to buy such businesses using the proceeds of crime, which provides them with a legitimate income and opportunities for money laundering.

Such businesses involved in laundering criminal proceeds, may also be involved in tax evasion, tobacco smuggling, drugs, employing illegal migrants and forced labour, the NCA said at a press briefing today.

In April this year the NCA teamed up with HMRC, immigration services, local police and trading standards, Regional Organised Crime Units, Companies House and the Insolvency Service to target such businesses in a three-week crackdown on high street crime.

In total, 380 premises were visited across Operation Machinize, where officers secured freezing orders over bank accounts totalling more than £1m, executed 84 warrants and made 35 arrests.

The operation saw 55 individuals questioned about their immigration status and a further 97 individuals safeguarded in relation to potential modern slavery.

In addition, officers seized more than £40,000 in cash, some 200,000 cigarettes, 7,000 packs of tobacco, over 8,000 illegal vapes and two vehicles. Two cannabis farms were also found, containing a total of 150 plants. Ten shops were shut and £1 million of assets were seized.

Rachael Herbert, Deputy Director of the National Economic Crime Centre at the NCA, said: “Operation Machinize targeted barbershops and other high street businesses being used as cover for a whole range of criminality, all across the country.

“We have seen links to drug trafficking and distribution, organised immigration crime, modern slavery and human trafficking, firearms, and the sale of illicit tobacco and vapes.

“We know cash-intensive businesses are used as fronts for money laundering, facilitating some of the highest harm and highest impact offending in the UK.

“Here at the National Economic Crime Centre, we coordinate UK-wide action, and lead cross-system efforts to make our financial system more resilient.

“The excellent results from the first iteration of Operation Machinize are testament to the tireless work of officers across the country, and demonstrate our resolve to clamp down on organised criminality abusing the high street.”

The NCA is again targeting cash-intensive businesses with four people charged after money service bureaus and mobile phone shops were targeted last week with £30,000 seized and bank accounts frozen.

A solicitor was also arrested following a raid on a jewellers which is suspected to be linked to an organised crime gang and involved in a Ponzi Scheme investment fraud with transactions as big as £80,000 involved.

Over £2 million of assets were seized including 30 high-high value watches including Patek Philippes, gold bars and one ring worth £500,000.

Fifteen premises in Suffolk were visited with an immigration overstayer identified and illicit tobacco and vapes seized and a money service bureau closed.

Further raids are expected as part of the ongoing operation.

It comes after the Government announced that councils across England and Wales will be encouraged to use new powers to prevent unwanted betting and vape shops, along with "fake" barbers and other businesses suspected of being fronts for criminal gangs, under the government's new Pride in Place programme.