Modern Slavery

Nationwide Crackdown on Money Laundering and Modern Slavery Targets Barbershops

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The National Crime Agency (NCA) has reported a significant nationwide operation aimed at addressing money laundering and modern slavery, which specifically targeted hundreds of barbershops. Known as Operation Machinize, this initiative involved coordinated efforts from police and law enforcement officers who scrutinized 265 businesses, including nail salons and vape shops, in England and Wales. The main objective of the operation was to combat what is referred to as "high street crime" and to disrupt the criminal activities of gangs that utilize cash-dependent businesses to obscure their illicit financial activities.

In the course of this extensive operation, ten shops were closed down, with further closures anticipated. Authorities made 35 arrests during their investigations and identified 97 potential victims of modern slavery, ensuring their safety under police protection. Rachael Herbert, the deputy director of the National Economic Crime Centre at the NCA, emphasized that cash-heavy businesses often serve as fronts for laundering money, significantly enabling various forms of serious crime within the UK.

Operation Machinize saw cooperation among 19 different police forces and regional organized crime units, leading to the freezing of bank accounts totaling over £1 million. Additionally, officers seized more than £40,000 in cash, approximately 200,000 illegal cigarettes, 7,000 packs of tobacco, and over 8,000 unlicensed vapes. They also discovered two cannabis farms with a combined total of 150 plants. The NCA has estimated that the UK generates about £12 billion in criminal cash annually, highlighting the onus on cash-intensive businesses, such as barbershops and others, which can obscure the source of such funds.

These kinds of businesses are often exploited by crime syndicates to integrate illicit cash into the legitimate financial system. By purchasing these establishments using proceeds from crime, these gangs can both generate legitimate income and engage in money laundering. Security minister Dan Jarvis highlighted the pervasive issue of high street crime, reiterating the government’s commitment to ensuring safety and justice within communities. He acknowledged the complex challenges posed by organized crime and reaffirmed support for the NCA's ongoing efforts to create a more hostile environment for such activities across the UK.

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May 21, 2023 | 05:09