At least £325bn in illicit funds moves through the United Kingdom each year, according to new research that raises questions about resources for enforcement agencies and official interest in digital assets. The sum represents more than 10% of UK GDP and covers proceeds from financial offenses, money laundering, corruption, illegal commerce and tax evasion, the Finance Innovation Lab charity reported. Adding crown dependencies and overseas territories such as Jersey and the Cayman Islands lifts the annual total above £788bn. The study is considered the first wide-ranging effort to measure illicit finance connected to the UK, drawing on cross-border data about tax evasion and crime to illustrate the country’s role as an international center for such flows. The findings appeared as the government postponed the Illicit Finance Summit from June until December. The charity urged Labour ministers to address the UK’s part in enabling economic crime and tax avoidance. Report author Jesse Griffiths stated that the financial sector frequently supports these flows, harming the economy and public services. The all-party parliamentary group on Anti-Corruption and Responsible Tax endorsed higher funding for bodies including the National Crime Agency and Serious Fraud Office, arguing the investment would be recovered through fines and seizures. The group also requested a pause on plans to establish London as a global crypto hub, citing rising links between digital assets and laundering. The report stressed that greater transparency over company ownership in overseas territories remains essential to curb abuse.
