UK Linked to £325 Bln in Illicit Financial Flows Each Year

At least £325 billion in illicit funds pass through the United Kingdom every year, according to a report cited by The Guardian, raising concerns over money laundering, corruption, tax evasion, and financial crime.

The report, based on research by the Finance Innovation Lab, estimates that illegal financial flows linked to the UK account for more than 10% of the country’s GDP. When British Overseas Territories and Crown dependencies such as Jersey and the Cayman Islands are included, the figure rises to more than £788 billion annually.

Researchers described the study as the first comprehensive attempt to measure the scale of illicit financial activity connected to Britain’s global financial system.

The findings were released as the UK postponed its planned summit on illicit finance from June to December. The charity urged the Labour government to take stronger action against economic crime and offshore tax avoidance.

The report also warned that government plans to expand London as a global cryptocurrency hub could increase risks linked to money laundering and hidden financial transactions.

A UK government spokesperson said anti-corruption measures and new cryptocurrency regulations expected by 2027 would strengthen oversight, adding that thousands of additional compliance staff are being recruited to tackle tax evasion.