Question to the Home Office:

To ask the Secretary of State for the Home Department, what steps her Department is taking to prevent the formation of criminal cash-intensive businesses.

The latest National Risk Assessment, published by this Government in July, highlights the continued threat of cash-based money laundering to the UK. The Government is committed to ensuring cash-intensive businesses such as candy retail stores and barbershops are not exploited by criminals who seek to launder their cash enabling them to profit from their illegal activities.

The Government’s approach to tackling money laundering is set out in the Economic Crime Plan 2 which includes action to disrupt cash-based money laundering and strengthen system wide coordination. The Government, working in partnership with law enforcement and other agencies, is closely monitoring the level of illicit activity in the high street and actively considering whether further systemic interventions are needed to tackle this threat.

Using new powers under the Economic Crime and Corporate Transparency Act 2023, Companies House is also taking stronger action to monitor and safeguard the company register to ensure accurate information, prevent misuse of the register for economic crime, and build public trust in the UK business environment.

Operationally, in March 2025, the National Economic Crime Centre in the National Crime Agency, coordinated a three-week crackdown against barbershops and other cash intensive businesses involving 19 different police forces and Regional Organised Crime Units, as well as national agencies including HMRC, Trading Standards and Home Office Immigration Enforcement. In total, 380 premises were visited across the three-week operation, with officers securing freezing orders over bank accounts totalling more than £1m, executing 84 warrants and arrested 35 individuals. Officers also seized more than £40,000 in cash, 200,000 cigarettes, 7,000 packs of tobacco, over 8,000 illegal vapes and two vehicles.

This is the first phase of targeted action against criminals and organised crime groups who use high-street businesses to launder criminal monies.