At least 325bn of dirty money' flows through UK each year, says report

At least £325bn of illicit money flows through the UK each year, exceeding 10% of UK GDP. The estimate includes funds tied to financial crime, money laundering, corruption, illegal trade, and tax evasion. When crown dependencies and overseas territories such as Jersey and the Cayman Islands are included, the figure rises to more than £788bn annually. The research aims to quantify illicit finance flows linked to the UK using cross-border data on tax evasion and financial crime, reflecting the UK’s role as an international hub. The findings are released ahead of an Illicit Finance Summit and call for government leadership to confront the UK’s enabling role. Support includes increased funding for state investigators and measures expected to be offset by higher fines and asset seizures.

"At least 325bn worth of dirty money is flowing through the UK every year, according to research that is sparking concerns about funding for state investigators and the government's push into crypto assets. The figure is equivalent to more than 10% of UK GDP and includes illicit funds linked to financial crime, money laundering, corruption, illegal trade and tax dodging, according to the report by the Finance Innovation Lab charity."

"Including the UK's crown dependencies and overseas territories, such as Jersey and the Cayman Islands, the figure jumps to more than 788bn annually. The research is believed to be the first comprehensive attempt to quantify the scale of illicit finance flows linked to the UK, with cross-border data on tax evasion and financial crime revealing the extent of the UK's international role as a hub for dirty money from across the world."

"Rachel Reeves has described the UK's financial sector as the crown jewel' of the economy. Our report shows that, all too often, it is in fact playing a central role in supporting illicit financial flows: harming our economy, taking money from our public services, and supporting crime. Understanding the true scale of this is an essential first step toward ensuring the financial system works for society, not against it."

"The all-party parliamentary group (APPG) on Anti-Corruption and Responsible Tax is backing the Finance Innovation Lab's calls for government action, including a rise in funding for state investigators including the National Crime Agency and Serious Fraud Office, which they said would be likely to pay for itself through higher fines and asset seizures."

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