Commons Sense

House of Commons · Ministers' Questions

Money Laundering in Retail Businesses

Tuesday 21 January 2025 · 2 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 2 Not answered 0

Key points

  • The estimated loss of revenue to the Exchequer from money laundering in retail environments is a concern addressed by the Government.
  • The Government is working to tailor cash deposit limits to reflect the differences in needs and risk profiles across businesses.
  • Support for Customs and Excise, local authorities, and police forces in gathering evidence for HMRC is part of the Government's commitment to clamping down on money laundering.

Topics (select to filter)

Questions & Answers

Q1 Bradley Thomas Con Bromsgrove
Taxation Business Compliance
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.

Question

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?

Answer from Emma Reynolds (Economic Secretary to the Treasury)

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.

Partly answered

Not addressed: 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.

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Q2 Melanie Onn Lab Great Grimsby and Cleethorpes
Crime & Law Enforcement Economy
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.

Question

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.

Answer from Emma Reynolds (Economic Secretary to the Treasury)

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.

Partly answered

Not addressed: The MP asked for specific additional support measures which were not provided in detail. The response reiterated commitment without concrete details.

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