Money Laundering in Retail Businesses

Treasury – in the House of Commons at on 21 January 2025.

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Photo of Bradley Thomas Bradley Thomas Conservative, Bromsgrove

What assessment she has made of the potential implications for her regulatory policies of recent trends in levels of money laundering in retail businesses.

Photo of Emma Reynolds Emma Reynolds The Economic Secretary to the Treasury

This Government are committed to tackling money laundering. Money laundering through cash-based high street businesses is a known issue, and the Treasury works closely with law enforcement agencies to monitor trends in criminality and ensure resources are deployed towards the most significant threats.

Photo of Bradley Thomas Bradley Thomas Conservative, Bromsgrove

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?

Photo of Emma Reynolds Emma Reynolds The 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.

Photo of Melanie Onn Melanie Onn Labour, Great Grimsby and Cleethorpes

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.

Photo of Emma Reynolds Emma Reynolds The Economic Secretary to the Treasury

We take this issue very 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.