Is the UK business market struggling to cope and turning to illegal activities to fund their business ventures?
Photo by Kuncheek
With a global pandemic that has been and gone now, many UK businesses might have found themselves in financial difficulty in 2021 as they began to pick up the pieces from their struggling business. In 2022 things appear to be slightly better, if you don’t factor in the exorbitant petrol price hikes that we saw in recent months, delays at the Calais port for shipping goods (in a Post-Brexit era), or the increase in prices for everyday items which is bumping up the retail prices and then passing this onto the consumer. Uk businesses are continually finding themselves battling another hurdle, again and again.
They need to find a way to somehow make a profit or even just survive in these difficult times. So is it any wonder then that many business owners are tempted by somewhat illegal activities in order to keep their business afloat. If so, how are they actually doing this and why have they not been found out yet?
Here we take a look at the evolving money laundering problem that has emerged amongst many UK businesses, money laundering.
What is money laundering and how are businesses getting away with it?
Typically in a normal business world you would have specific laws in place that encourage businesses to abide by these rules. Throughout the course of the year a business usually needs to complete paperwork, fill in their tax returns and complete an external AML (Anti-money Laundering) Audit.
This is typically conducted by an independent body who is neutral so that there cannot be any criminal activity taking place. The problem is if the business that issues the money laundering audit to take place has links with this company that falsification and criminal activity can easily take place. When you have UK companies that are not complying with the law and undergoing scrupulous activities, it becomes an issue.
The problem is far greater than simply money laundering
The concern is that these businesses are then not adhering to the The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 which is crucial if unlawful financing of terrorist groups is going on. The problem with money laundering is that the proceeds of these funds can then be dispersed or used to finance unlawful terrorist groups that have an alterior motive.
The Gambling Commission has identified that there is an upward trend of UK businesses who are establishing links with terrorist groups and finacing their cause with the proceeds of their money laundering activities. This is due to a lack of proficient policies, procedures and controls in place, which makes this a lot easier to carry out criminal activity. Also there is an upward trend of money launders to utilise Scottish notes and prepaid cards to be able to continue with their illicit activities. More checks need to be applied by external sources, the police and even members of staff who can then highlight any suspicious activity to the The Gambling Commision, if they have any hope of cutting back on this increasing trend that is emerging here in the UK business market.
