Proof that we are losing the battle against financial crime in the UK

The BBC article "Endless Battle: Fighting the Crime Gangs Taking Over the High Street" (July 31, 2025) exposes the rampant illicit tobacco and vape trade in the UK, with seizures from 3,624 shops in 2024-25 and nearly £72 million in lost public revenue in 2023-24, highlighting systemic failures in Anti Money Laundering (AML) laws and controls.

• Whole article here https://www bbc co uk.cdn.ampproject.org/c/s/www.bbc.co.uk/news/articles/ckgevynly99o.amp
• Summary below

The BBC reports on widespread illicit tobacco and vape trade, driven by organised gangs using forced labour, "stash cars," and links to drug dealing, which generates massive cash profits often more lucrative than narcotics that must be laundered through financial systems.

Yet, it persists unchecked, proving AML measures are not fit for purpose.

Despite robust AML regulations like the Money Laundering Regulations (MLRs), which require banks, lawyers, and accountants to implement Know Your Customer (KYC) checks, report suspicious activities, and prevent illicit fund integration, the article's depiction of brazen criminality on high streets intimidation, acid attacks, and elusive shop owners shows these controls fail to disrupt the flow of dirty money from illicit tobacco into legitimate channels.

Limited enforcement powers for local authorities, under-resourced Trading Standards teams facing threats, and inadequate legislation for permanent shop closures allow gangs, often Chinese and Kurdish networks, to exploit vulnerabilities, with proceeds funding wider crime like terrorism and human trafficking.

Broader evidence reveals AML compliance failures are rife, with UK banks and professionals incurring £34 billion annually in compliance costs yet yielding limited successes against sophisticated laundering exacerbated by poor data sharing, overregulation leading to "debanking," and a focus on low-level crimes over high-end schemes.

As a result, it could be argued that the UK is losing the battle, with financial crime thriving despite government efforts like increased patrols and Border Force seizures, underscoring the need for reformed AML frameworks to stem the tide effectively.

THE BBC article is summarised here:

• Chinese gangs reportedly control the counterfeit tobacco trade, exploiting migrants on student visas, while Kurdish gangs sell the goods in mini marts.
• Trading Standards teams describe an "endless battle" against criminal gangs using:
• Forced labour, illegal workers; and
• "stash cars" to distribute counterfeit cigarettes, drugs, and vapes.
• In 2024-25, illegal goods were seized from 3,624 shops across England, Scotland, and Wales, costing public services nearly £72m in 2023-24.
• The trade fuels organised crime, undermines legitimate businesses, and harms public health, with locals reporting intimidation, drug dealing, and even an acid attack.
• In Newport, South Wales, 19 shops along a one-mile stretch were shut down in the past nine months for selling illegal tobacco and vapes, part of a broader issue across Britain.
• In East London, Trading Standards face challenges closing shops due to elusive owners, with illegal goods often hidden in secret compartments.
• Swansea sees similar issues, with stash cars linked to drugs and tobacco, and officers facing threats.

READ THE WHOLE ARTICLE

• https://www bbc co uk.cdn.ampproject.org/c/s/www.bbc.co.uk/news/articles/ckgevynly99o.amp