Money Laundering in Retail Businesses 2025-01-21
2025-01-21
TAGS
Response quality
Questions & Answers
Q1
Partial Answer
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Context
Recent trends indicate an increase in money laundering through cash-based high street businesses, raising concerns about regulatory policies and revenue loss to the Exchequer.
Hard-working shopkeepers and entrepreneurs across the country, including in Bromsgrove and the villages, play by the rules and pay their taxes. What is the estimated loss of revenue to the Exchequer from money laundering in retail environments in towns and villages across the country, and what are the Government doing to crack down on this?
It is right that we take a robust approach to money laundering, and we have a tailored approach to cash deposit limits to reflect the differences in needs and risk profiles across businesses’ customer bases. I am committed to working with the Financial Conduct Authority and others to ensure we strike the right balance—one that allows businesses to continue their operations but also ensures that we assess the risk posed by those who might be using their businesses to launder money.
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Assessment & feedback
The MP asked for an estimated revenue loss due to money laundering, which was not provided. The response focused on policy approach rather than financial impact.
Response accuracy
Q2
Partial Answer
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Context
High street money laundering is a significant concern, with criminal enterprises using retail fronts to launder large sums of money. The effectiveness of law enforcement agencies in gathering evidence and supporting HMRC's efforts is under scrutiny.
What additional support can the Government offer to Customs and Excise, local authorities and police forces in gathering supporting evidence that can then be provided to His Majesty’s Revenue and Customs? High street money launderers are brazen fronts for significant criminal enterprises.
We take this issue seriously. The Treasury owns the money laundering regulations, but the FCA has a key role as a major supervisor, and we work very closely with the criminal enforcement agencies. Of course, those agencies are independent, but we are absolutely committed to clamping down on money laundering.
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Assessment & feedback
The MP asked for specific additional support measures which were not provided in detail. The response reiterated commitment without concrete details.
Response accuracy