By PAUL O’DONOGHUE, Senior Correspondent
AT least £325 billion in “dirty money” flows through the UK every year, a figure three times higher than official estimates, according to new research.
The report said the total includes illicit funds linked to money laundering, corruption, financial crime, illegal trade and tax evasion. The figure is equivalent to more than 10% of UK GDP.
It is far above official estimates. In 2025, the NCA (National Crime Agency) said that “over £100 billion” is laundered through or within the UK each year. The UK government has also referenced the ‘£100 billion’ figure.
The new research comes from Finance Innovation Lab, a UK-based non-profit.
The report said the largest identifiable components of IFFs (illicit financial flows) relate to “illicit tax and commercial practices”. It pointed to “the hidden movement of profit by multinational corporations and income associated with offshore wealth assets”.
“To represent other forms of IFFs – such as those linked to corruption, illegal markets, or exploitation-type activities – the report uses official estimates of money laundering as a proxy,” Finance Innovation Lab said.
Researchers referenced figures from the NCA and the Tax Justice Network when estimating IFFs.
The report (available here) breaks down the £325 billion figure as follows:
- ‘Hidden movement of profit’ – £91.9 billion. (Data source: Tax Justice Network)
- ‘Income associated with offshore wealth assets’ – £109 billion. (Data source: Tax Justice Network)
- ‘Illegal markets’, plus ‘corruption’, plus, ‘exploitation-type activities and financing of crime’ – £124 billion. (Data source: NCA)
The report also examined UK-linked offshore centres. When researchers included the dirty money flowing through UK Crown Dependencies and Overseas Territories such as Jersey and the Cayman Islands, the total rose to more than £788 billion a year.
UK dirty money problem
The report warned that its estimates were “conservative”.
“[The findings] highlight that, despite some progress in recent years, the UK – and the City of London especially – remains a global hub for illicit finance,” Finance Innovation Lab said.
It said that profits “artificially shifted into the UK and artificially shifted out of the UK – are both forms of illicit financial flows according to the UN definition”.
“While data for certain IFF categories remain incomplete, the available evidence demonstrates beyond doubt that the volume of illicit finance connected to the UK is very large.”
The researchers added that measuring the scale of ‘dirty money flowing through the UK is “not optional – it is a necessary foundation for effective policy”.
Agency funding
The report urged the UK government to increase funding for agencies such as the NCA and Serious Fraud Office. It also called for stronger action against tax secrecy in UK-linked offshore jurisdictions.
The report also criticised government plans to make London a global hub for crypto assets. It warned that crypto markets are increasingly linked to money laundering and financial crime.
“The UK’s global role as a financial hub brings economic benefits, but also attracts criminal, corrupt and tax-abusive activity,” the report said.
“Government plans to make the City a global hub for crypto assets risk exacerbating this.”
A UK government spokesperson said: “Corruption makes British people poorer and less safe and undermines our democracy. Which is why the government’s anti-corruption strategy was published in December to bring more corrupt actors to justice.
“New crypto regulations will bring crypto into the UK regulatory domain by 2027, and we’re recruiting an extra 5,500 compliance officers to tackle tax evasion.”
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