UK Sees Rise in Money Laundering Prosecutions, KPMG Report Reveals

A recent report has commended the increase in the number of money laundering prosecutions taking place in UK courts. KPMG’s Fraud Barometer highlighted that nine money laundering cases, with a total value of £128 million, were heard in UK Crown Courts during the first half of 2024. This marks a significant rise compared to the first half of 2023, when only four such cases, totalling £32.6 million, were brought before the courts.

The total value of fraud in the first six months of 2024 was reported at £305 million, representing a 14% decrease from the same period in 2023, when fraud cases amounted to £354.2 million. Despite the overall decline in fraud value, money laundering accounted for over a third of the fraud total in early 2024, even though it was involved in just nine out of the 122 fraud cases heard during this period.

KPMG noted the uptick in money laundering cases being prosecuted in the UK. The firm stated, “With the UK regularly cited as a hub for illicit finance, it is positive that more suspected perpetrators of this crime are appearing to be prosecuted.”

Roy Waligora, a partner and Head of UK Investigations at KPMG, emphasized that money laundering remains a significant issue in the UK due to “the complexity of financial systems that can be exploited for illegal activities.” He added, “It will be interesting to see if the relatively new requirement for overseas entities to be registered at Companies House will result [in] even more of these cases reaching the courts.”

The report also found that account takeover fraud was the most prevalent type of fraud in the first half of 2024, with 16 cases totalling £7.2 million being brought to UK Crown Courts. However, Mr. Waligora pointed out a concerning disparity: “With [banking association] UK Finance reporting 121,650 cases of account takeover fraud in 2023, it’s clear that only a tiny fraction of these criminals are brought to justice.”

By fLEXI tEAM