The U.K. Should Secure a Risky Back Door Against Money Launderers
Criminals are always searching for a way into the financial system, and Britain’s fast-growing fintech sector is an opportunity.
Britain’s fast finance needs better security
Photographer: Darren Staples/Bloomberg
Britain is among world leaders in the growing fintech industry — unfortunately this may keep the country a leader in money laundering, too. The U.K. doesn’t commit enough resources to fighting economic crime despite its very large financial sector and the rapid growth of digital payments and money transfer firms.
The country is especially attractive to money launderers for several reasons: It’s an open economy, a global hub for financial flows, has a big gambling sector and lax company creation rules. Britain has the right regulations, but they aren’t applied rigorously enough, especially with the hundreds of electronic money institutions (EMIs), according to Transparency International.