Question to the Home Office:

To ask the Secretary of State for the Home Department, what steps her Department is taking to help tackle the use of cash intensive businesses for money laundering.

Cash intensive businesses can be exploited by criminals who seek to launder their cash enabling them to profit from their illegal activities. Under the Proceeds of Crime Act 2002, law enforcement may seize cash of £1,000 or more if they reasonably suspect it is derived from or intended for use in criminal activity, even without a criminal charge or conviction. In the financial year ending March 2024, £49.5 million in cash was seized.

Driving down money laundering is critical to this Government’s key missions to deliver safer streets and economic growth. Addressing cash-based money laundering is therefore one of the strategic priorities of the National Economic Crime Centre (NECC), which sits within the National Crime Agency (NCA).

In March, the NECC, coordinated a three-week crackdown against barbershops and other cash intensive business across England and Wales involving 19 different police forces and Regional Organised Crime Units, as well as HMRC, Trading Standards and Home Office Immigration Enforcement. In total, 380 premises were visited across the three-week operation, with officers securing freezing orders over bank accounts totalling more than £1m, executing 84 warrants and arrested 35 individuals. Officers also seized more than £40,000 in cash, 200,000 cigarettes, 7,000 packs of tobacco, over 8,000 illegal vapes and two vehicles.

This is the first phase of targeted action against criminals and organised crime groups who use high-street businesses to launder criminal monies. The Government is committed to working with the NCA and partners to reduce this threat.