The debate about the presence of Russian oligarchs and their vast assets in the UK after the Putin regime’s invasion of Ukraine has pushed the problem of money-laundering up the political and regulatory agenda.
An estimated £88 bn is laundered each year in the UK, according to research by Credas Technologies, a specialist in ID verification software. Based on data from the OECD, its figures indicate that only the US (£217bn) is home to more money-laundering. The UK’s figure is well above that of France (£55 bn) and Germany (£51 bn). Yet there is evidence that even before this sudden – and, many would say, overdue – concern in the UK about the scale of criminal activity, the authorities were already starting to take a tougher line on the issue.
The Financial Conduct Authority (FCA) has started using its power to mount prosecutions on top of imposing regulatory penalties and civil fines against money-launderers. The regulator was granted this capability in 2007, but it was only in October 2021 that it secured its first conviction. NatWest was fined £264.8m for failing to properly monitor the activity of a commercial customer, Fowler Oldfield, a jewellery business based in Bradford. During the time that NatWest served as the firm’s bank, approximately £365 mn was deposited with it, of which about £264 mn was in cash, even though their original business arrangement did not cover the management of cash.
In some countries, extra investments in anti-money-laundering enforcement have produced a healthy return, as fines are imposed and profits are properly taxed. Bullough and other campaigners are calling for political support for those involved in a highly complex and sometimes risky area of law enforcement that can cause embarrassment for the rich and powerful.
