London could become global cash laundering epicentre after Brexit, report warns
- Credit: LCA
London could become the world's next money laundering capital, a report into the effects of Brexit on the UK's financial sector has warned.
Researchers at Queen Mary University warned that millions of pounds from terrorists and organised crime groups could be funnelled through London's business districts in a 'race to the bottom' after Brexit.
Dr Anna Damaskou and Dr Angelos Kaskanis from Greece's Democritus University suggested Britain's obsession with attracting 'foreign money' to make up for the shortfall of EU funds after Brexit could lure the wrong crowds.
You may also want to watch:
'There are concerns that Brexit will make London a centre for money laundering,' Dr Damaskou said.
- 1 Nigel Farage loses nearly 50,000 followers after Twitter suspends QAnon accounts
- 2 Tory minister admits UK rejected EU's music visa offer in order to 'take back control' of borders
- 3 Progressive alliance could see Labour win 351 seats at next election, new analysis reveals
- 4 Bob Geldof takes swipe at No 10 saying 'lying is second nature' to them
- 5 Former Brexit Party MEP dies in diving accident in the Bahamas
- 6 The greatest failure of government in our lifetime
- 7 Boris Johnson blames seafood companies for post-Brexit sales slump
- 8 Jacob Rees-Mogg says it's 'all the EU's fault' musicians can't tour Europe
- 9 What Auf Wiedersehen, Pet teaches us about Britain and Europe
- 10 Priti Patel fails to appear in Commons to answer questions on missing police records
'As things stand, Boris Johnson's government has signalled that it wants Britain to be entirely free to make its own rules. So the UK will be without reference to the EU once transition ends on December 31, unless there's agreement.'
Dr Damaskou feared Britain's new-found 'freedom' could lead to a 'race to the bottom' with financial deregulation and lack of dealing with jurisdictions outside Europe, in particular tax havens like Dubai.
The report from the Tactics Institute for Security and Counter Terrorism, issued through Team Britannia, lauded UK regulations as 'the most mature in Europe'.
But it predicts Gulf states and other small EU countries that do not already use British standards could launder money through the capital because of new, relaxed regulatory environment.
The authors fear Britain could end up copying many Gulf states whose financial systems 'lack transparency and oversight' which has turned them into a safe haven to launder proceeds of illegal arms sales, drug smuggling, people trafficking and terrorism.
London's significance as one of the world's leading financial centres 'must continue to work with the rest of the EU', the Tactical Institute urged.
They said that sweeping away financial regulations would give Britain a short-term economic boost but warned it could open the floodgates to money from drug running, modern-day people smuggling and global terrorism like ISIS and Al-Qaeda.
Become a Supporter
The New European is proud of its journalism and we hope you are proud of it too. We believe our voice is important - both in representing the pro-EU perspective and also to help rebalance the right wing extremes of much of the UK national press. If you value what we are doing, you can help us by making a contribution to the cost of our journalism.