At least £325bn of illicit funds flows through the UK each year, equivalent to more than 10% of GDP, according to new research by the Finance Innovation Lab charity. The figure includes money linked to financial crime, money laundering, corruption, illegal trade and tax evasion.
When the UK’s crown dependencies and overseas territories, such as Jersey and the Cayman Islands, are included, the total rises to over £788bn annually. The report is believed to be the first comprehensive attempt to quantify illicit finance flows linked to the UK.
The Finance Innovation Lab urged Labour ministers to “demonstrate leadership” in confronting the UK’s role in enabling economic crime and tax evasion. The all-party parliamentary group on anti-corruption and responsible tax backed calls for increased funding for state investigators like the National Crime Agency and Serious Fraud Office.
The report also called for a pause on government plans to make London an international crypto hub, warning that crypto assets risk exacerbating money laundering and hidden market dealings. It stressed the need for full transparency over the real owners of shell companies in overseas territories.
A government spokesperson said the anti-corruption strategy published in December aims to bring more corrupt actors to justice. They added that new crypto regulations will bring crypto into the regulatory domain by 2027, and 5,500 extra compliance officers are being recruited to tackle tax evasion.
