UK Identified as Global Hub for Money Laundering, Says National Economic Crime Centre

The UK has been identified as a key hub for international money laundering, according to the National Economic Crime Centre (NECC), one of the country’s primary anti-money laundering bodies. The NECC, which operates within the National Crime Agency (NCA), revealed that up to £12 billion in laundered funds originates from UK-based crime. However, it estimates that nearly 10 times that amount is funneled "through" the UK, making it a critical passageway for illicit money.

In its recently published annual report, the NECC highlighted the scale of money laundering flowing through the UK and the potential damage to the country's standing on the global stage. "We estimate as much as £100 billion of criminal profits [are] laundered through and within the UK, or using UK-registered corporate structures," said James Babbage, Director General for Threats at the NCA.

Babbage’s comments further emphasized that the UK’s "open economy" makes it an attractive location for international money laundering operations. The report also raised concerns about the rise of "misuse of crypto assets" and the increasing role of electronic payments in facilitating illicit finance.

In response to these growing threats, the NECC said it is collaborating with the Financial Conduct Authority to formulate a strategy aimed at preventing money laundering through cryptocurrencies.

The NECC’s remarks come as the UK faces increasing international scrutiny for its role in facilitating large-scale money laundering. Earlier this year, Andrew Mitchell, a former UK government minister and deputy foreign secretary, stated that approximately 40% of the world’s dirty money is laundered through the UK. He pointed to the City of London and UK Crown Dependencies as major conduits for these illicit funds.

Mitchell also stressed the importance of implementing beneficial ownership registers, which would disclose the true owners behind corporate entities. However, this idea has faced resistance from Crown Dependencies like Jersey, where concerns over the potential impact on business privacy have led to opposition against the registers.

The NECC’s report underscores the growing international pressure on the UK to address its involvement in global money laundering, as well as the urgent need for reforms to tackle the issue.

By fLEXI tEAM