Pubs targeted by money laundering criminals
More than £370m in cash is being laundered through the pub trade every year, says a leading investigator of organised crime.
Roger Wilson from the financial intelligence unit of the Serious Organised Crime Agency (SOCA) has estimated that out of the annual £37bn turnover of the industry at least one per cent is laundered money.
"Even if it is just one per cent laundered money that's £370m and I suggest it's more than that," he said.
Businesses such as pubs are prime targets for criminals as they are cash turnover businesses.
"The criminal industry does not deal in cheques and bonds. The main medium of exchange is cash. What better than a cash generative industry?" Wilson said. "It's up to the pub trade to batten down the hatches and keep them out."
He told delegates at the British Beer & Pub Association (BBPA) North of England Forum to do their best to act against money laundering in their pubs as the reputation of the trade was at stake.
He warned pubcos to vet lessees carefully. "If you lease a pub or employ someone make sure you get a passport so you can identify them," he advised. "There should also be someone that tenants and lessees can go to with their suspicions."
He said criminals will try and buy pubs by using cash. Once they have managed that a clever criminal will gradually inflate the turnover and create false invoices for supplies such as management services. They will then be able to put criminal money through the business.
Wilson also advised caution about ATM machines, which he says are an "excellent way of money laundering".
Peter Rea, regional security manager at Coors Brewers, said a criminal could easily launder stolen goods through a pub. "It upsets the economy and causes major social problems," he said.
It remains unclear how much money is laundered in the UK by terrorist organisations, he added.
Mark Hastings, BBPA communications director, said: "Pubs are as much the innocent victims of this crime as anyone. It's important that managers and tenants feel they have the support of the law enforcement agencies.
"We are part of the solution but this isn't a pub problem - it's an organised crime problem."
What is SOCA?
The new crime-fighting agency was launched in April 2006 to target the biggest criminals who make fortunes from drugs, human trafficking, major fraud and counterfeiting.
If you are suspicious that money laundering is going on in your pub then go to www.soca.gov.uk and fill out a suspicious activity report.
