Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Study: How the corrupt launder their money in the UK

Study: How the corrupt launder their money in the UK

They spend it on luxury properties, jets and superyachts, or simply on tuition fees so their offspring can study at prestigious private schools and universities. A study by anti-corruption campaigners Transparency International has shed new light on the UK as a hub for the corrupt and their wealth from around the world.
The analysis of more than 400 corruption and money-laundering cases, involving more than US$400 billion, shows how nearly 600 UK businesses, institutions and individuals have helped corrupt individuals – both unwittingly and sometimes knowingly – move and shield their ill-gotten gains, Transparency International said.

In many cases, the money was channelled through companies in the UK or its offshore financial centres and then recycled in Britain’s economy, with luxury goods and services firms, law firms, banks and accounting firms playing a key role.

The study details how the UK’s property market in particular had become a prime destination for corrupt individuals and other criminals to launder their stolen funds, often in combination with shell companies registered overseas.

Transparency International recommends public registers to make the owners of offshore entities more transparent, noting that in October the Cayman Islands committed to introducing such a register from 2023.

UK companies also feature heavily in the corruption and associated money-laundering cases because of the UK’s hitherto laissez-faire approach to company incorporation.

More than 2,100 UK and overseas companies were directly involved in the corruption cases and an additional 17,000 UK-based legal entities featured at least one officer who had been found to be involved in economic crime. More than a third of these entities used nominee directors registered at just 10 English addresses. As a result, only a handful of people signed off hundreds of accounts for UK companies linked to money laundering and corruption.

The study stated that Companies House does not have adequate resources or powers to sufficiently monitor and ensure the integrity of its company register. “This allows corrupt individuals and their agents to abuse UK companies for criminal purposes, and inhibits businesses’ ability to identify and report suspicious activity to law enforcement,” the report said.

Duncan Hames, policy director at Transparency International UK, said in a press release, “We’ve known for a long time that the UK’s world-class services have attracted a range of clients, including those who have money and pasts to hide.” The new study should act as a wake-up call for government and regulators to deliver money-laundering reforms, he added.

A lack of anti-money laundering supervision is also an issue for many types of non-financial businesses. Services such as private education, architects and interior designers, and public relations firms simply fall outside of anti-money laundering rules.

This means they are under no obligation to carry out checks on their clients or their sources of wealth, allowing corrupt individuals to spend their money with impunity, Transparency International said.

For instance, the study found that more than US$5.2 million in suspicious funds were paid to 178 different UK educational institutions from the various money-laundering operations exposed by the Organised Crime and Corruption Project and its partners.

This cash had found its way to prestigious independent schools like Charterhouse and Harrow, and world-class universities including University College London and the University of St Andrews.

A total of US$10.5 million was paid to 37 UK architectural and interior design firms from anonymous shell companies with Baltic bank accounts, the study said, noting, “Corrupt individuals may contract these businesses to carry out work on property they own to increase its value and launder money at the same time.”

The organisation is therefore calling for a radical overhaul of the UK’s anti-money laundering supervisory regime to establish a credible deterrent against British firms turning a blind eye or actively helping corrupt individuals.

Daniel Bruce, chief executive of Transparency International UK, said while government and law enforcement agencies had made real progress in recent years to reduce the places for corrupt individuals to hide, “our findings confirm it is still far too easy for criminals and the corrupt to seek impunity with the assistance of UK businesses”.

He added, “Despite the dedication of many committed professionals in the fight against corruption, there remains too much poor practice to be able to assume bad behaviour is confined to a few rotten apples.”

Transparency International said that its study was only able to identify a small piece of a much larger puzzle, because much of the activity it investigated is shrouded in secrecy. The true involvement of UK firms and institutions was likely to be far higher.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Severe Heatwave Claims 2,300 Lives Across Europe
Declining Beer Consumption Signals Cultural Shift in Germany
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
×