At least £325bn of illicit funds flows through the UK annually, equivalent to more than 10% of GDP, according to a report by the Finance Innovation Lab charity. The figure includes money linked to financial crime, money laundering, corruption, illegal trade and tax evasion.
Including crown dependencies and overseas territories such as Jersey and the Cayman Islands, the total rises to over £788bn per year. The research is believed to be the first comprehensive attempt to quantify illicit finance flows linked to the UK.
The report was released as the government postponed the Illicit Finance Summit from June to December. The Finance Innovation Lab urged Labour ministers to confront the UK's role in enabling economic crime and tax evasion.
Jesse Griffiths, one of the report's authors, said: '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.'
The all-party parliamentary group on anti-corruption is backing calls for increased funding for the National Crime Agency and Serious Fraud Office, and for a pause on plans to make London an international crypto hub. The government said new crypto regulations will be introduced by 2027 and that it is recruiting 5,500 extra compliance officers to tackle tax evasion.
