Barbers and vape stores among 2,700 high street shops raided in money-laundering crackdown
Barbers, mini-marts and e-cigarette shops are among 2,700 high street businesses raided in the UK’s biggest ever raid on money laundering.
Authorities say these cash-rich establishments, which have proliferated on Britain’s high streets in recent years, can be used for a variety of illegal activities, from hiding dirty money and hiding drugs to smuggling and smuggling people into tobacco and e-cigarettes.
The rapid growth of such businesses is evident in areas such as Essex and Doncaster, where the number of barber shops has increased by 200 per cent in just five years.
These sweeping raids form the second phase of Operation Machize, a nationwide initiative launched 18 months ago after the National Crime Agency (NCA) concluded a critical “tipping point” had been reached.
Billions of pounds are laundered in the UK every year, with around £12 billion of this being processed in cash.
Most of these are thought to be caused by drugs.
A month-long operation in October saw 2,734 premises visited and raided, 924 people arrested, more than £10.7 million seized and £2.7 million worth of illegal goods destroyed.
More than 450 companies were referred to Companies House for further review.
Businesses targeted included nail salons, car washes, takeaways, phone stores and candy stores.
Sal Melki, NCA deputy director of illicit finance, said: “Shops exploited by criminals can act as hubs for a variety of polycrimes.
“So it could be a convenient place to launder money or evade taxes.
“It may also be a convenient place to transport illicit goods, hide the proceeds of drug sales, or serve as a meeting point for accomplices.”
The national operation saw officers in West Yorkshire target an alleged criminal gang accused of using jewelers to commit investment fraud and launder proceeds.
Police seized assets worth more than £2 million, including gold bars, a ring worth £500,000 and 30 watches, some made by Patek Philippe.
A lawyer with a mortgage-free house worth £1 million is alleged to have authorized payments worth £800,000 as part of a money laundering operation.
Rachael Herbert, director of the NCA’s National Economic Crime Centre, said: “Thousands of police officers are deployed across our country to target criminal profits and the means by which they are made.
“Hundreds of thousands of harmful and illegal products have been removed from our streets and more than £10 million in cash has been 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 to commit further crimes and deterring them from taking up spaces on our high street that could be used by legitimate businesses.”
Security minister Dan Jarvis said: “Criminals are using these dangerous shops as fronts for serious organized crime, money laundering and illegal working, putting the future of the British high street at risk.
“We have intensified our joint efforts with law enforcement to dismantle criminal networks and ruthlessly pursue those who use black money for personal gain.
“Together we have seized millions in criminal assets, removed harmful drugs from our streets and arrested hundreds of criminals who harmed honest business owners.
“I want to thank every police officer involved in this operation.”
