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Bureaux de change: Crackdown on drug gangs money laundering | |
(about 2 hours later) | |
Bureaux de change and currency transfer businesses are to be raided by police in a week-long crackdown on suspected drugs money laundering. | |
They hope targeting the cash will reduce street violence linked to disputes between gangs by disrupting their activities. | |
Police say 12 businesses in London will be raided on Tuesday - the first day of the operation | |
Inspectors will visit another 39 to check they are complying with the law. | |
There are around 9,000 money exchanges in London, handling tens of billions of pounds each year between them - about a fifth of the UK market. | |
'Cash is lifeblood' | |
Detectives say the vast majority of these companies operate legitimately, but a "significant number" - which they call "launderettes" - are involved in illegal activity. | |
This can include receiving bags or holdalls full of cash from drug deals and processing it to make it look as though it has come from a legitimate source. | |
About £100bn is laundered through the UK every year, but it is not known much of this goes through money service businesses. | |
The crackdown is a joint operation between the Metropolitan Police, HM Revenue & Customs and financial services watchdog the Financial Conduct Authority. | |
Det Ch Supt Mick Gallagher, who is co-ordinating the operation, said: "Money drives drug dealing, drives violence." | |
He added: "The cash is the lifeblood of this. If you choke off the ability to trade effectively, then you disrupt the network." | |
Following a separate operation in 2011, police described the use of legitimate bureaux de change by money launderers as a "weak point". | Following a separate operation in 2011, police described the use of legitimate bureaux de change by money launderers as a "weak point". |
A number of people were convicted of offences linked to drug dealing or money laundering in a case that exposed one London firm's links to organised crime networks from all over the UK. |