Over £10m seized as more than 2,700 cash businesses including vape stores, nail bars and barber shops raided

THOUSANDS of "cash" premises have been targeted by law enforcement in a major operation.

The second wave of the National Crime Agency (NCA) led Operation Machinize saw the criminal exploitation of high street businesses targeted.

Conducted in cooperation with the National Police Chiefs’ Council (NPCC), it ran throughout October and involved every UK police force and Regional Organised Crime Unit, Home Office Immigration Enforcement, Trading Standards, HM Revenue and Customs and Companies House. During the operation, the partnership raided and visited 2734 premises, arrested 924 individuals, seized over £10.7m of suspected criminal proceeds and more than £2.7m worth of illicit commodities was destroyed.

These figures include the removal of 70Kg of cannabis from our streets, 111,000 harmful, illegal vapes, 4.5m illegal cigarettes and 622Kg of illegal tobacco (equalling £3.5m of duty taxes evaded). Furthermore, 341 Referral Notices for illegal working and renting were issued meaning businesses could face fines of up to £60,000 per worker with landlords facing fines of up to £20,000 per tenant if found liable, and over 450 companies have been referred to Companies House for further investigation.

This was the largest operation of its kind focused on rooting out the economic crime and grey economy that makes our high streets less safe and prosperous.

The NCA estimates that at least £12bn of criminal cash is generated in the UK each year, which is typically smuggled out of the country or integrated into financial systems, often to be recycled back into criminality.

High street businesses such as mini-marts, barbershops, vape shops, nail bars, and car washes are used to make the proceeds of crime appear like the legitimate profits of a trade or service. High street businesses are also being used to sell illicit products and evade tax, and are often linked to other types of criminality such as drug supply and the serious violence it causes.

Earlier this year, the NCA established Operation Machinize after identifying the criminal exploitation of high street businesses was beyond the scope of any one organisation. Working in partnership with the NPCC, it aims to catalyse a large-scale operational response to a multi-faceted problem. This approach – coordinated nationally and delivered in our communities - ensures the most effective use of powers and capabilities, capitalising on the strengths and remits of each participating agency.

Machinize was established to target economic crime on the high street with this iteration also focusing on the grey economy. There is a known overlap with the exploitation of high street businesses, illegal working and the evasion of customs and excise duties. This overlap also includes modern slavery and unsuitable living and working conditions, and safeguarding individuals at risk remains a priority for the partnership.

Rachael Herbert, Director of the National Economic Crime Centre at the NCA, said: “Operation Machinize targets businesses on our high street that are being used as cover for a wide range of criminality, making our communities less safe and less prosperous.

“This second phase of Operation Machinize has set a new standard for what can be achieved through the coordinated action of UK law enforcement. Thousands of officers have been deployed up and down our country, targeting criminal profits and the means of generating them. Hundreds of thousands of harmful and illegal products have been taken off our streets, and over £10m in cash, frozen in bank accounts and criminal assets seized. Depriving criminals of their source of income has a real impact, limiting the amount of funds they can reinvest in further offending and deterring them from taking spaces on our high street that could be used by legitimate businesses.

“These excellent results demonstrate what can be achieved in partnership and show the determination of UK law enforcement to keep our communities safe. We ask for the public’s support as we move forward and to continue to report suspected criminality to the police.”

Sal Melki, Senior Lead for Machinize 2 at the NCA, said: “Machinize 2 has pioneered a whole-system approach to addressing this problem, with the NCA hosting a joint operational cell where our partners could bring their powers, expertise, and energy to tackling an issue the British public care about.

“Over the course of the month, we have learnt a lot about the threat, the different types of offending occurring on our high street and what tactics are effective in combating it. We have also learnt that this type of offending is not restricted to any one area, type of shop or demographic. The scale of this challenge is significant, but it is also important to remember that the majority of shops on our high streets are not considered suspicious.

“While there is organised crime occurring at the top of the pyramid, we do not underestimate the aggregated effect that thousands of shops engaged in so-called lower level criminality are having on our communities and the criminal supply chains that profit from them.

The Machinize model therefore relies on local knowledge and delivery just as much as national coordination and intelligence.

“This phase of the operation has been a big success and is one of the largest operations of its kind. We acknowledge the problem won’t be solved overnight or through disruptive action alone – today’s high street is subject to many socio-economic factors beyond the scope of a law enforcement partnership. We are therefore working closely with the government to use the learning from this operation to build on and develop long-term solutions.”

Security Minster, Dan Jarvis said: “Criminals are using these dodgy shops as fronts for serious organised crime, money laundering and illegal working, risking the future of the British high street.

“We have intensified our joint efforts with law enforcement to dismantle criminal networks and relentlessly pursue those who use dirty money for personal gain.

“Together we have seized millions in criminal assets, removed harmful drugs from our streets and arrested hundreds of criminals who are undercutting honest business owners. I want to thank every officer who took part in this operation."

Deputy Commissioner Nik Adams, NPCC Lead Financial Investigation: “This action has seen a huge collective effort from UK law enforcement agencies, working together to tackle organised gangs who exploit cash intensive businesses for criminal gain.

“We’ve seen every force in England and Wales working to build intelligence pictures, ensuring we are targeting people who are laundering illicit cash through businesses. We know this money will have links with other forms of criminality such as the exploitation of workers, people trafficking and the sale of illicit goods.

“Not only are we tackling this activity but through this action, we are gaining information and forming a wider picture on high harm offending. Our message is clear, we are alive to the activity happening and we are identifying and bringing to justice those who misuse businesses on our high streets for illegal gain.”

CASE STUDIES

1. Police visited a multi-purpose shop in West Yorksire used by an OCG involved in county lines drug dealing as a front for criminal activity – entry had to be forcibly gained. The shop sells dealer bags to drug dealers in a variety of sizes and prices, amongst confectionary products (e.g. sweets). Other products believed to be illicit (cigarettes and vapes) were also found on the premises. A number of mobile phones were seized and are in the process of being examined, and a search of the subject’s home address led to the seizure of a large amount of cannabis and other controlled drugs and a quantity of high-value goods. As well as the arrest, various items were seized including drug dealing paraphernalia, receipts and details of book keeping, CBD products, vapes and illegal cigarettes.

Individual arrested for money laundering and being concerned in the supply of drugs.

Second had home address searched with numerous items seized including designer clothing, cannabis with a street value of approximately £160,000, other controlled drugs with a collective street value of £9,000, and a high-value watch (£12k). Charged with Possession with intent to supply Class B drugs and remanded into custody.

2. The operation based in West Yorkshire focused on an OCG utilising a Jewellery shop and business to commit a gold investment fraud and launder the criminal proceeds. The investigation uncovered how the OCG used a complicit solicitor to launder the cash. Bank statements and financial records were obtained and identified the movement of significant amounts of criminal monies between the solicitor’s firm and accounts held by OCG. Their house was searched and a significant number of high-value items including gold, watches and cash with an initial estimated value at between £2m-£2.5m were seized. A restraint order was also obtained to secure various residential properties, including the home address. The solicitor was arrested and the Solicitors Regulatory Authority notified.

Subject was arrested for money laundering and ome address searched with significant amount of high value items seized. Restraint Order obtained preventing the dissipation of other assets including a number of residential houses owned by the suspect, money in bank accounts and a number of high value vehicles.

3. A Trading Standards inspection of a convenience store uncovered significant quantities of illicit/counterfeit vapes, tobacco and packets of cigarettes. The products were purposefully concealed within specially designed hideaways within the store and behind the counter. The store contained a basement that was connected to the premises next door. The premises next door is a barbershop, and the staff working there were very familiar with the shop staff. Amongst the items seized were notebooks, invoices and receipts. The books have been written in a foreign language - translation of the books indicated orders for thousands of packets of cigarettes, and information around how to complete an asylum form with fraudulent details such as changing nationality to avoid deportation. There was also information relating to debt collection activity, with large amounts of money owed to them. The books found also supported till receipts which showed millions of pounds going through the business over a relatively short period of time, with 2 significant transactions recently paid in. Following the visit, a third subject was seen leaving the premises with a suitcase, and then returning a short time later with the same suitcase that was now clearly full.

The director of the business has been the subject of previous seizures of illicit products.

LONDON

The Met Police carried out a series of visits to 30 venues across London as part of the operation.

Premises included barbershops, fast food outlets, car workshops, nail bars, money service bureaus and other high street venues.

The enforcement activity resulted in the seizure of counterfeit goods worth £240,000, around 1,200 illegal vapes and £22,000 in cash.

Officers also recovered illegal knives that had been on display for sale and seized fraudulent tills and chip-and-pin machines. They also removed 57 hazardous toys that pose a risk to children’s safety.

Detective Superintendent Kerry Wood, Head of the Met’s Economic Crime Unit, said: “This operation shows the Met’s commitment to keeping London’s high streets safe, fair and free from criminal exploitation.

“Criminal networks use cash-heavy businesses to hide illicit profits, exploit vulnerable workers and undercut honest traders. Our work focuses on disrupting that activity by seizing illegal goods, removing criminal cash and gathering vital evidence for ongoing investigations.

“We are committed to protecting communities and supporting legitimate businesses, while ensuring anyone seeking to profit from criminal activity is identified and held to account.”

HMRC supported activity at 14 venues and has since launched five new investigations. Immigration Enforcement officers supported visits to 13 venues, and technology firm Apple assisted officers at six locations where counterfeit devices were identified.

The modern slavery team attended 7 venues, acting on intelligence surrounding forced labour with workers believed to have been trafficked into the country against their will. Police and local authorities have also begun closure proceedings against seven venues.

The activity is part of a National Crime Agency coordinated initiative, with the Met’s Economic Crime Unit leading enforcement across the capital.

The Met will continue working with partners to protect businesses and tackle organised crime across London.

BREAKDOWN OF NATIONWIDE RESULTS

Premises Visited 2734

Total Arrests 923

Cash Seizures £538k

Non-cash seizure value including restraint of assets such as watches, jewellery and illicit commodities £9.4m

Account Freezing Orders £3.5m

Drugs seizures (cannabis) 68.6kg

Seizures – illicit vapes 111,097

Seizures – illicit tobacco 621.9kg + 5,134 packs

Seizures – illicit cigarettes 2,187,975 sticks + 120,364 packs

HMRC Duty Tax Evaded £3.4m

Civil Penalty Referral Notices (CPRN) - illegal working and right to rent 341

Companies House referrals for enforcement 450+