Clean Cash: Money Laundering in the UK

Clean Cash: Money Laundering in the UK

Clean Cash: Money Laundering in the UK

A 2008 international narcotics control strategy report by the US State Department indicated that the UK was among the world's top 50 countries for money laundering. The report points to figures released by the UK's Serious Organised Crime Agency (SOCA), showing that 15 billion is laundered' in Britain every year.

Historically, the term money laundering' was only applied to financial transactions relating to organised crime but today, money laundering can be any illegal activity involving a financial transaction through which an asset or value is created.

Indeed, money laundering is still rife across the country and the recent withdrawal of the 500 euro note from sale in the UK is testament to this. After eight months of currency trading analysis, SOCA identified the 500 euro note as being at the centre of money laundering; the reason being that its high value meant it was easy to transport large sums of cash in comparatively small spaces.

As an illustration, twenty thousand euros could fit into a single cigarette packet. The market for 500 euro notes in the UK has thus far been driven largely by drug gangs, as opposed to tourists or business travellers, and only 10% of the 500 euro notes in circulation across the UK have been used for legitimate activities, according to SOCA.

So, it would seem, money laundering is still very much alive and kicking in Britain, but the withdrawal of 500 euro notes is a step in the right direction in the fight to keep Britain's cash count clean - and clean' not because of laundering' activities.

It isn't just money laundering that costs the UK dear, fraud is said to cost the British economy 30 billion a year, up to twice the figure previously thought. Up to a third of all fraud is committed against companies, with false insurance claims alone costing the financial services industry 2 billion per year.

The sad thing is that the likes of home insurance fraud affects everybody not just the insurance company, as the losses made usually result in home insurance premiums increasing.

Tools used to combat insurance fraud are becoming increasingly sophisticated, with a centralised database helping insurance companies to monitor previous claims made.

Furthermore, money has been known to be laundered via bogus insurance claims whereby illicit funds are used to purchase high-value goods, which are then used to lodge claims for loss or damage to these goods. Insurance Hunter' is a fraud detection and prevention tool for the insurance industry which provides companies with access to shared databases which can help identify suspicious claims patterns.

So whilst the UK has a fight on its hand against the likes of money laundering, proactive steps are being taken to combat the scourge of dirty money, which is good news for everyone - except for the criminals, of course.

POST COMMENT

Selling Gold Rings And Other Gold For Cash Four Tear Jerker Movies Available to Show in HD for Guys Living in California and Texas Website Designing For Your E-Commerce Business 90 Day Cash Loans – Loans For Easy Monetary Help How to get started a call center small business by Benjamin Herb kimble Check cashing payday advance- meeting your requirement in advance Opteman Making Business with the World Russia: Top Ten Tips for Doing Business in Russia Financial Security For Business Directors And Why Banks Don't Want To Lend Instant payday loans an amazing way to procure urgent cash Productive Procedures for a Successful B2B Telemarketing Important factors to start a business Save Money on Your Business' International Phone Bill