Rise in alleged money laundering

Released On 14th Sep 2024

According to a recent report, there has been a 16 per cent year-on-year increase in the number of alleged fraud cases coming to court across the UK – with money laundering being the most common fraud type by value in the last six months. So far, nine such cases have been heard this year, valued at just over £128 million.

The number of alleged fraud cases valued at more than £100,000 has risen to 122 over the period, from 105 in the first half of 2023.

According to the National Fraud Intelligence Bureau, four-fifths of reported fraud is now cyber-enabled.

As the report says, money laundering is a problem in the UK because of the “complexity and sophistication of financial systems that can be exploited for illegal activities.”

However, the net is tightening on individuals believed to be laundering money, with the increased attention on public sector fraud leading to better detection and legal action.

For example, earlier this year, a sophisticated international network of money laundering worth £55 million was uncovered by the Metropolitan Police and seven people were sentenced recently to more than 24 years in total for a range of money laundering offences.

Roger Isaacs, Forensic Partner at Milsted Langdon, said: “The scale of fraud and money laundering currently being investigated in the UK is significant, but even this doesn’t give a full picture of the level of criminality taking place.

“Fraudsters are increasingly becoming more and more sophisticated, and the resources of the police and prosecutors are limited, which is why the number of reported money laundering cases is only the tip of the iceberg.

“While compliance requirements for those required to conduct checks have become more stringent, the reality is that money laundering remains a real with the vast majority of perpetrators operating with almost total impunity from foreign jurisdiction.

“Some are even state-sponsored and through careful forensic investigation the money trails can sometimes lead back to perpetrators in the UK or in countries from which extradition is possible but this is time-consuming and requires significant resource.”

Sources: City AM, KPMG