Report reveals increase in money laundering

There has been a sharp rise in the incidence of money laundering in the UK, according to new research from BDO LLP, the accountancy and business advisory firm.

The company’s latest FraudTrack report, which examines all reported fraud cases over £50,000 in the UK, found that the total value of reported money laundering related to fraud offences has risen to £288 million compared to £70 million in 2012. This represents a total value increase of over 309% on the prior year.

The actual number of reported money laundering cases meanwhile has also risen from 33 in 2012 to 39 in 2013.

In some cases covered in the report, the amount of money being laundered is very large. The largest sum involved was £170 million, which was laundered through a bureau de change in Notting Hill. The second largest sum was £52 million, which was laundered by a courier in the East Midlands.

"Reported cases of money laundering have surged in 2013 both in terms of value and number of cases driven largely by criminal greed,” commented the report's author, Kaley Crossthwaite, Head of Fraud at BDO LLP. “This may be partly down to an increase in organised crime activity however the demand for transparency in the financial services sector is also surely playing a part.

"The laundering of ill-gotten gains is largely carried out through the financial services sector and the increased legislation and compliance imposed on largely unsuspecting businesses operating in this sector seem to be uncovering increasing numbers of illegal transactions that may have historically been swept under the carpet," she added.

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