Uptick in money laundering cases reaching UK courts, KPMG data shows

There has been an increase in the number of alleged fraud cases heard in Crown Courts across the country, with money laundering being the most common fraud type by value in the last six months.
According to new data by KPMG’s Fraud Barometer, 122 fraud cases in total were heard in the first six months of the year at the Crown Courts. This figure is up from 105 cases during the same period in 2023.
Nine cases of money laundering, worth a collective £128.2m, have been heard so far this year.
This increase comes on the back of a well-documented court system is on its last legs.

A recent damning report by the National Audit Office (NAO) laid out that it takes, on average, 683 days from an offence being committed to a case being completed at the Crown Court.
Despite the increase in cases, the value of the fraud had dropped by double-digits.
The report revealed that the total value fraud recorded was over £305m, which is a 14 per cent drop compared to last year, when the collective value stood at £354.2m.
KPMG’s report detailed that it is the public sector that has “been the biggest victim of fraud in terms of value so far in 2024”.

A total of 26 fraud cases related to the UK government have been heard, with a combined value of £193.4m, which is an increase of 30 per cent compared to the same period in 2023.
The general public continues to bear the brunt of fraud, with 41 cases totalling £33.2m being heard in the UK’s courts during the first half of 2024.
Roy Waligora, partner and head of UK Investigations at KPMG pointed out that “money laundering continues to be a problem in the UK due to the complexity and sophistication of financial systems that can be exploited for illegal activities.”
He added that the “increased attention on public sector fraud has led to better detection and legal action.”

“However, UK courts face challenges managing fraud cases amidst broader judicial pressures. Fortunately, the anticipated guidance on what constitutes ‘reasonable procedures’ to prevent fraud by the government is expected to streamline fraud management and prosecution,” he added.
This data comes after the Metropolitan Police revealed that it “uncovered a sophisticated international network of money laundering via Chinese underground banking” which led to seven people being sentenced this month.
Following an investigation, officers discovered over £55m had been laundered by the group between February 2020 and June 2023.
Four people – three men and one woman – were sentenced at Snaresbrook Crown Court on 19 August for a range of money laundering offences, while three others were previously sentenced on 14 June, to a total of 24 years and 11 months between them.

Article Credit: https://www.cityam.com/uptick-in-money-laundering-cases-reaching-uk-courts-kpmg-data-shows/